Rédaction Africa Links 24 with Sonja Smith
Published on 2024-02-20 17:00:00
The Ministry of Finance and Public Enterprises’ review panel has strongly advised the Oshakati Town Council to apply for the blacklisting of a company called Truth Investments CC, which has been accused of using fraudulent certificates to win a N$7.3 million road upgrading tender.
Truth Investments CC, owned by Jafet Mvula, was awarded a tender in August 2023 by the Oshakati Town Council to upgrade the Okahao MR 92 intersection and Oshakati roads. However, following an order by the review panel on 4 December 2023, the council has been advised to apply for the debarment of the bidder who submitted false documents.
This move to blacklist Truth Investments CC was prompted by an investigative report by The Namibian in November, which exposed the company’s use of false certificates to make claims of having completed previous projects for two northern councils – Oshikuku and Ruacana. Both councils disputed these claims, which led to the cancellation of the tender after an objection was lodged by Alugodhi Engineering and Construction CC.
The review panel also noted that during the meeting held on 13 November 2023 to verify the completion certificates of the selected bidder, it was discovered that the completion certificate for the upgrading of Sam Nujoma Drive was not authentic and the works had been carried out by another bidder, not the selected one. The consultant claimed by Truth Investments CC also refuted having worked with the company on these projects.
The Public Procurement Act (PPA) allows entities to apply for the debarment of a bidder or supplier participating in procurement proceedings, according to Section 67(1)(a). If the Oshakati Town Council decides to proceed with the debarment, Truth Investments CC will be prohibited from participating in tender processes across the country for the next five years.
In response to these allegations, Jafet Mvula has denied any wrongdoing. Oshakati Town Council chief executive Timoteus Namwandi confirmed that the council is currently consulting on the advice they have received, expressing caution about the drastic decision ahead.
Nevertheless, the council cancelled the awarding of the contract to Truth Investments CC, re-evaluated other bidders, and eventually awarded the tender to Alugodhi Engineering.
This is not the first time Truth Investments CC has come under scrutiny. The company had previously won various tenders, including a N$14 million contract through the Central Procurement Board of Namibia (CPBN) in April 2023, prompting an investigation by the board.
These fraudulent practices have been a concern for the CPBN, as they slow down the procurement process and contribute to delays in the finalization of awards. CPBN chairperson Amon Ngavetene acknowledged the loopholes that exist, such as collusion and conflicts of interest, which have led to the necessity of time-consuming fact-checking procedures to verify the authenticity of documents submitted during public procurement bidding.
The Oshakati Town Council is currently deliberating on the advice received to proceed with the application for the debarment of Truth Investments CC. The allegations against the company have highlighted the critical need for transparency and integrity in the procurement process, ensuring that only qualified and legitimate bidders are awarded government tenders.
Read the original article on The Namibian
