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RCC conflict of interest: Director’s firm wins road tender at state parastatal

Rhys Mbala

A Roads Contractor Company (RCC) board member’s private company has won a tender to oversee a gravel road project at the same parastatal he leads.

The appointment has raised concerns about potential conflict of interest safeguards in state-owned enterprises.

The company in question, Trinitas Consulting Engineers, owned by RCC director Rhys Mbala, has been appointed to handle compliance duties and supervise the RCC’s work on the 20-kilometre Erago – Mbeyo road upgrade from sandy to gravel in the Kavango West region.

Mbala confirmed to The Namibian on Wednesday that he has declared his interests to the RCC board and informed the company secretary that he would not take part in any RCC decisions or activities related to the project.

“Our appointment was done by the Ministry of Works and Transport.

We tendered, we got the tender, we won it, and after we were appointed as consultants, the ministry allocated some of the roads to RCC. The road you are talking about happens to be one of those allocations,” he said.

Mbala added that the tender was publicly advertised in September last year, adjudicated in April 2025, and his company was officially appointed in September this year.

“Unfortunately, I cannot tell my company to withdraw from a tender we legitimately won simply because I am a director at RCC, especially when the contractor is appointed by the client,” he said.

RCC chief executive Dasius Nelumbu says the declaration was made formally and that conflict management steps are in place.

“He owns a consulting firm. The ministry advertised the tenders for consultancy services, and I want to believe that a number of consultants were hired for different roads. One of those hired was his firm.

By that time, the allocation to RCC had not yet been made,” Nelumbu says.

He adds that the ministry’s allocation of the Erago-Mbeyo road to the RCC only came after Mbala’s company had already been appointed.

“That’s why he declared his interest, to indicate that he is a consultant on that road. Measures have been put in place to ensure the conflict is well managed, if there would be one at all. I don’t see an issue there,” Nelumbu says.

He adds that the value of the bid has not been finalised.

“We have not finalised the price negotiation yet. We have a meeting for the price negotiation today at 15h00 to finalise that, because there are some aspects that were probably not considered.

Once we finalise the price negotiation, then the amount will be available,” Nelumbu told The Namibian yesterday morning.

RCC board chairperson Lea Namoloh says the matter does not fall under the RCC as it is just a client. She refers questions to the Roads Authority

Roads Authority chief executive Conrad Lutombi has referred the queries to the company’s spokesperson, Hileni Fillemon.
However, she did not respond to questions sent to her at the time of going to print.

Works and transport minister Veikko Nekundi says: “I will revert. I need to establish who appointed the consultant, whether it is the Roads Authority or the ministry.”

Nekundi officiated the groundbreaking ceremony of said road last week.

Last month The Namibian ran an article in which the Namibia Association of Local Authority Officials claimed that too much control to maintain roads has been left in the hands of the Road Fund Administration (RFA) and the Roads Authority.

The RFA last week denied these claims, saying local authorities are involved in site inspections and progress reviews as well as have influence over planning and delivery.

The tender that awarded Trinitas comes at a time when the RCC is already facing public scrutiny over past allegations of conflicts of interest.

Earlier this year, The Namibian reported that the Anti-Corruption Commission was investigating RCC’s Nelumbu over corruption allegations involving three tenders, including a fuel supply contract worth N$1.5 million, that went to Eco Fuel Investment CC.

Eco Fuel is linked to Victor Malima, a fugitive businessman who is wanted in the controversial deals at the National Petroleum Corporation of Namibia.

Another RCC case involves allegations of overpaying subcontractors.

Nelumbu has denied any wrongdoing, saying he is a target of distractors who are spreading misleading information.

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