Nekundi to probe alleged ‘unlawful’ rail contract

Works and transport minister Veikko Nekundi is to investigate an allegedly unlawful contract worth N$175 million awarded to a joint venture for the rehabilitation and maintenance of a railway line.

Nekundi was responding to allegations made by Swapo regional coordinator Matheus Mumbala during the party’s executive committee meeting opening at Keetmanshoop on 7 March.

Mumbala alleged that some TransNamib executive engineers are board members of the TransNamib joint venture with D&M Rail Construction through Namibia Rail Construction.

TransNamib entered into an agreement with D&M Rail Construction in 2014.

The 10-year partnership was to rehabilitate the ageing rail network to allow for the expansion of rail traffic to 18.5 tonnes/axle capacity, boosting regional trade and to support increased cargo movement, such as manganese ore exports.

D&M Rail Construction was contracted by the works ministry following a derailment around 2011/12 to carry out urgent and specific repair work.

Together, they formed Namibia Rail Construction (NRC) in 2014.

Mumbala alleged that the NRC received the tender to do maintenance and rehabilitation work on the southern railway line in 2022.

The railway line connects South Africa’s Northern Cape province to the port of Lüderitz.

The upgrades are being done on the Sandverhaar-Buchholzbrunn section.
“I will investigate,” said Nekundi last Tuesday.

D&M, now known as the Afri-Track Group, has roots dating back to 1995 and is known for its work in railway infrastructure rehabilitation and maintenance.

D&M Rail Construction directors include James Hatuikulipi, Davis Moller, John Walenga and Desmond Taylor, while Hatuikulipi and Moller, along with Kelvin Kaisi and Johan Loubscher, are the beneficial owners
The company changed its name to Afri-Track Railway Construction in July 2022

NRC is represented by Tersia Grunewald as its sole director.

NRC beneficial owners include Moller, Kaisi, Loubscher, Onecca Udjombalah and Wilbard Nashima, while beneficial owners from TransNamib include Bertus Eksteen, Desmond van Jaarsveld, Vemunengua Kavari and Webster Gonzo.

Mumbala called on the minister to review the contract, claiming TransNamib does not have direct oversight.

“Some of the management, including some of the executive engineers, are board members of NRC.

They corruptly awarded projects without going through procurement processes.

These people are telling the ministry that the civil department does not have capacity so that NRC can benefit through tender procurement processes,” Mumbala claims.

He demanded that officials from the ministry explain whether they assessed TransNamib’s capacity before going out to tender, and questioned why they did not allocate capital projects to TransNamib to build institutional capacity.

The TransNamib board of directors last week refuted the allegations, stating that they adhere to all procurement processes.

“The Afri-Track Group remains part of the NRC subsidiary, in which TransNamib holds a 51% shareholding, and is fully subject to the Public Procurement Act of Namibia,” reads a statement.

Should any services be required from external providers in the future, TransNamib said it will continue to strictly adhere to all applicable procurement policies and procedures.

The company clarified that it has direct oversight of the maintenance and safety of the railway network, which remains its responsibility.

TransNamib chief executive Desmond van Jaarsveld yesterday said the minister had enquired about the matter and responses have been provided to him. He said further queries on the matter should be directed to the minister.

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