Fifteen small and medium enterprises (SMEs) who won subcontracts for extra work on the upgrading of the Opuwo-Otjivize road in the Kunene region have complained of being sidelined by the main contractor, Otesa Civil (Pty) Ltd.
The project was formally awarded to Otesa and partners on 4 December 2024.
A groundbreaking ceremony which president Netumbo Nandi-Ndaitwah officiated was held at the site at Opuwo on 12 November last year.
In a letter dated 9 June 2025 the SMEs wrote to Otesa contracts manager Shaun Rickerts, complaining that while the contract had been awarded more than six months earlier, they had not received any formal communication from Otesa regarding the signing of the main contract with the client, the Roads Authority, the required partnership contract with the SME contractors, and the issuance of letters of award.
In a follow-up joint letter to Otesa, dated 25 July 2025, the subcontractors complained that while the contract was awarded on 4 December 2024, they had received the initial communication on 19 February 2025.
“Otesa confirmed the award and cited ongoing finalisation of contractual documents, insurance, and guarantees with the Roads Authority. Further, Otesa indicated that ground breaking was pending confirmation from the authority,” the letter reads.
The SMEs listed concerns including that they were not notified, invited, or represented at the site handover on 9 May 2025.
“No SMEs have signed award letters or agreements, despite project mobilisation already taking place.
This pattern of exclusion and lack of procedural transparency is unprofessional and inconsistent with the spirit and requirements of the bidding documents,” the SMEs say.
They also ask when Otesa will make the scope of work, budgets, and partnership terms available to them for review and agreement.
The subcontractors say the delay in formalising their participation has severely undermined their planning, resource allocation, and financial readiness.
“Several of our members have foregone other contract opportunities based on anticipated involvement in this project, leading to loss of potential income and operational strain,” they say.
In a letter to the SMEs, dated 17 July 2025, Rickerts says Otesa was in consultation with the Roads Authority regarding the budget and scope of work for the project.
“In the meantime, we have commenced with site establishment, and further consultations are ongoing with the governor’s office in this regard. Once the scope of work and budgets are clarified with the client, Otesa will contact you regarding the scope of work to be undertaken,” he says.
The SMEs are still waiting, although they also wrote to the Roads Authority’s chief executive, as well as the Ministry of Works and Transport for intervention on the status of the project.
Otesa Civil owner and chief executive Elmo Kaiyamo could not be reached for comment.
– email: matthew@namibian.com.na
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