Shifting costs questioned

FLUCTUATIONS in the estimated cost of the Okahandja-Otjiwarongo highway have come under scrutiny at the judicial inquiry into alleged irregularities in Namibia’s roads administration.

Otniel Podewiltz, Legal Counsel for the inquiry, said last week he was “bothered” that the cost of the road had changed between the time that bids were invited and when the contract was signed. “As far as the cost is concerned something still bothers me,” he said at the start of his questioning of Hendrik Petrus Kruger, a director at Windhoek Consulting Engineers (WCE), the company supervising the reconstruction of the 176-km road.Podewiltz read out documents showing that the cost of the road changed from N$173,4 million to N$174,9 million without explanation.Kruger said that “escalation” might have pushed up the figure, but Podewiltz shot this down.He said that no time had lapsed to warrant any “escalation” in costs.”How did it happen that in a few weeks’ time N$1,5 million had to be added,” he asked.Kruger was unable to give an answer immediately and promised to forward his explanation to the commission when he had gone through the tender documents.He denied that any money might have been paid to people not “entitled” to it.Kruger defended the WCE’s decision to award a N$40 000 a year bursary to daughter of Roads Authority manager Lawrence Kiggundu.He said the granting of the bursary had been based solely on the young woman’s academic abilities.Kruger spent one and a half days on the witness stand fending off suggestions that WCE, which was appointed without any advertisement, had chosen the most expensive option for rebuilding the highway He said in the long term the reconstruction would be worthwhile as the road would last for 15 to 20 years.Earlier, Podewiltz said that the purchase of a N$2,9 million recycling machine was added to the cost of the highway after the tender had already been advertised.Kruger replied that the money for the machine was included in the contract signed with the companies building the road.At the end of his testimony, Kruger fended off questions about his qualifications.It emerged through cross-examination that he was neither a qualified or a registered engineer, although he has supervised major roads projects.Kruger said he was registered as a “technologist” in South Africa and that he had vast experience in road construction.* In an article published in The Namibian last week, Kruger’s middle name was given as Johannes. His middle name is in fact Petrus.”As far as the cost is concerned something still bothers me,” he said at the start of his questioning of Hendrik Petrus Kruger, a director at Windhoek Consulting Engineers (WCE), the company supervising the reconstruction of the 176-km road. Podewiltz read out documents showing that the cost of the road changed from N$173,4 million to N$174,9 million without explanation. Kruger said that “escalation” might have pushed up the figure, but Podewiltz shot this down. He said that no time had lapsed to warrant any “escalation” in costs. “How did it happen that in a few weeks’ time N$1,5 million had to be added,” he asked. Kruger was unable to give an answer immediately and promised to forward his explanation to the commission when he had gone through the tender documents. He denied that any money might have been paid to people not “entitled” to it. Kruger defended the WCE’s decision to award a N$40 000 a year bursary to daughter of Roads Authority manager Lawrence Kiggundu. He said the granting of the bursary had been based solely on the young woman’s academic abilities. Kruger spent one and a half days on the witness stand fending off suggestions that WCE, which was appointed without any advertisement, had chosen the most expensive option for rebuilding the highway He said in the long term the reconstruction would be worthwhile as the road would last for 15 to 20 years. Earlier, Podewiltz said that the purchase of a N$2,9 million recycling machine was added to the cost of the highway after the tender had already been advertised. Kruger replied that the money for the machine was included in the contract signed with the companies building the road. At the end of his testimony, Kruger fended off questions about his qualifications. It emerged through cross-examination that he was neither a qualified or a registered engineer, although he has supervised major roads projects. Kruger said he was registered as a “technologist” in South Africa and that he had vast experience in road construction. * In an article published in The Namibian last week, Kruger’s middle name was given as Johannes. His middle name is in fact Petrus.