Tender Board Lacks Capacity

I HAVE been employed by various security companies over nine years in various capacities, from an ordinary guard to assistant area manager.

I would like to share my views with the public and the Tender Board. It is very unfortunate for us as guards to note that our employers (security companies) tender very low for the sake of getting tenders.The Tender Board of Namibia does not have the capacity to understand the industry’s cost structure and it approves whatever the Ministry recommends to them.I think to some companies it is prestigious just to have a tender, even if they are not making any profit.Can the Tender Board explain what they take into account when they rubberstamp the Ministry’s submissions for approval? Just take a simple calculation: Company A charges N$3,85 an hour (Vat included).If you take away Vat (N$3,85/1.15 is equal to N$3,34 an hour) from N$3,34, subtract the minimum wage per hour which is N$2,09 (remember this rate excludes overtime and night allowances); you are then left with N$1,25 an hour (to cover overtime, Sunday allowances, social security compensation and contributions – I am just mentioning the statutory payments).What about overheads and profit margins? It is slightly different in the private sector because it is business-minded and understands that any company is there to achieve goals and to strike a balance between employees and shareholders’ interests.For example, if a tender is for the whole country, the sector divides the country into four parts and divides the tender among the four companies, having empathy for those companies that have tendered at market-related prices.Government is the largest consumer of services and yet it turns a blind eye to its slogans and empty promises of promoting SMEs, equity and economic growth.How do you expect people who lose their jobs due to a lack of skills to survive? Most of them will resort to running unlicenced shebeens.This happens because of those who are entrusted to make recommendations at ministerial level.Some of those in decision-making positions are shareholders in some of the security companies! And the same people make recommendations for price increases.A case in point is the Ministry of Health’s current Security Tender.This reflects on the senior officer of that Ministry who chaired the ministerial Tender Committee.S/he knew very well that some of the companies they had recommended did not meet some of the tender conditions, such as membership of the Security Association of Namibia.The records are there at SAN.How did the Ministry of Health manager or the person who chaired that particular tender overlook what is known to them? And who is suffering now? Obviously the Ministry.Some officials have said openly that there were qualified companies that were ignored.The Tender Board is a credible entity, it should re-evaluate for the purposes of demonstrating to the Nation that they are trustworthy.My recommendation to the Tender Board is to capacitate themselves or source experts in areas where they lack knowledge if they want to uphold their credibility.Nangombe Indungikeni Windhoek This letter has been shortened.- EdIt is very unfortunate for us as guards to note that our employers (security companies) tender very low for the sake of getting tenders.The Tender Board of Namibia does not have the capacity to understand the industry’s cost structure and it approves whatever the Ministry recommends to them.I think to some companies it is prestigious just to have a tender, even if they are not making any profit.Can the Tender Board explain what they take into account when they rubberstamp the Ministry’s submissions for approval? Just take a simple calculation: Company A charges N$3,85 an hour (Vat included).If you take away Vat (N$3,85/1.15 is equal to N$3,34 an hour) from N$3,34, subtract the minimum wage per hour which is N$2,09 (remember this rate excludes overtime and night allowances); you are then left with N$1,25 an hour (to cover overtime, Sunday allowances, social security compensation and contributions – I am just mentioning the statutory payments).What about overheads and profit margins? It is slightly different in the private sector because it is business-minded and understands that any company is there to achieve goals and to strike a balance between employees and shareholders’ interests.For example, if a tender is for the whole country, the sector divides the country into four parts and divides the tender among the four companies, having empathy for those companies that have tendered at market-related prices.Government is the largest consumer of services and yet it turns a blind eye to its slogans and empty promises of promoting SMEs, equity and economic growth.How do you expect people who lose their jobs due to a lack of skills to survive? Most of them will resort to running unlicenced shebeens.This happens because of those who are entrusted to make recommendations at ministerial level.Some of those in decision-making positions are shareholders in some of the security companies! And the same people make recommendations for price increases.A case in point is the Ministry of Health’s current Security Tender.This reflects on the senior officer of that Ministry who chaired the ministerial Tender Committee.S/he knew very well that some of the companies they had recommended did not meet some of the tender conditions, such as membership of the Security Association of Namibia.The records are there at SAN.How did the Ministry of Health manager or the person who chaired that particular tender overlook what is known to them? And who is suffering now? Obviously the Ministry.Some officials have said openly that there were qualified companies that were ignored.The Tender Board is a credible entity, it should re-evaluate for the purposes of demonstrating to the Nation that they are trustworthy.My recommendation to the Tender Board is to capacitate themselves or source experts in areas where they lack knowledge if they want to uphold their credibility.Nangombe Indungikeni Windhoek This letter has been shortened.- Ed