A SWAPO investigation into corruption at Katima Mulilo has unearthed widespread tender irregularities involving at least 10 contracts and implicating some politicians and the town management.
The report was compiled in 2014 by the Swapo committee which comprised Magaret Mahoto, Raymand Sezuni, Collins Muleke and Robert Simanga from the Zambezi region.
The Swapo executive committee in the Zambezi region sanctioned the investigation after several allegations of corruption involving party leaders in the region had been made.
One of the terms of reference was that the committee should look into how tenders were being awarded at Katima Mulilo.
Although the report appears to have been ignored by the ruling party’s top leaders, it said the findings were “just the tip of the iceberg” regarding the Katima Mulilo Town Council’s general maladministration and poor financial management.
Even though the media touched on the report briefly in 2014, the issue of tender irregularities was never reported on, especially the kinship between contract winners and the town’s political leaders, and how a Chinese businessman suddenly became a darling of the town council in scooping up tenders at the north-eastern town.
The full report seen by shows that a firm called ABC Construction, which, according to investigators, is owned by Chinese “investor” Guo Yun Hai, won five of the 10 contracts that were being probed by the Swapo committee.
The tenders were issued during the 2014 financial year. Guo won the contract to construct speed humps at Mavuluma extension at Katima Mulilo for N$100 000, and the tender to install air conditioners at the town council. Guo also won a N$600 000 contract to renovate the Ngweze Community Hall.
These three tenders were never publicly advertised and there was no tender board exemption approved, the committee found.
In addition, the committee said the council only used one quotation for the Ngweze Community Hall renovations, and the former chief executive officer rubber-stamped this contract without the blessings of the council’s tender board.
Guo’s ABC Construction also won the N$2,5 million tender to renovate the Wooden Bridge recreation facilities. The company also won the N$500 000 tender to add stalls at the Katima Mulilo open market.
The latter two tenders were advertised, but the committee found that the value was inflated by over N$350 000.
The committee also questioned an industrial plot deal involving Guo at Katima Mulilo. The report said the Chinese businessman acquired Plot E, but he allegedly never applied for it.
Little is known about Guo, and why he became a low-key tender go-to-man at Katima Mulilo.
Besides the construction company, Guo also owns ABC Factory at Katima Mulilo, which manufactures corrugated zinc sheets.
He opened the factory in 2015, and employed 20 young people. Guo furthermore owns ABC Guesthouse.
Efforts to get comment from Guo were not successful.
Except for those five tenders to Guo, the other five include a N$150 000 contract awarded to a company owned by councillor Nsala Muhongo to clear and plant grass at the Katima Mulilo Town Council guesthouse.
A N$900 000 tender went to Allan Construction to renovate the same guesthouse. Allan Construction is owned by Allan, the brother of former mayor Charles Matengu, who has since 2015 been demoted to deputy mayor of Katima Mulilo.
The committee also found that the Katima Mulilo cemetery tender worth N$355 000 went to a company owned by a councillor’s brother, whose name could not be verified by .
The committee also recommended that an audit be undertaken at Katima Mulilo through the line ministry.
The investigators furthermore asked the ruling party to recall several council leaders such as Matengu, Saluvilila Maswahu and former deputy mayor Muhongo.
They also asked the ministry to send former chief executive Charles Nawa on forced leave to pave the way for investigations because most of the controversial contracts were awarded under the administrative leadership of Nawa.
Nawa served as Katima Mulilo Town Council CEO from 2012 until he suddenly resigned in July 2016, claiming political interference.
According to the report, Nawa also benefited from questionable deals, acquiring five hectares (about the size of five average football fields) along the Zambezi river without following council procedures.
Nawa’s wife, Sikanda Inonge, got residential plot 3797 in Extension 13 at the town without applying for it, the report also claims.
Nawa told two weeks ago that the allegations are false, and that he had followed procedures to obtain the land he owns.
He said his wife and sister-in-law are Namibians, and that there are no restrictions for them to get plots just because they are related to a chief executive.
Nawa is accused of ignoring the Swapo committee when it asked him to explain his dealings at the council.
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