The minister of finance and public enterprises, Ipumbu Shiimi, has told parliament that the question of whether minors should be allowed to be shareholders in companies is a matter to be addressed by the Business and Intellectual Property Authority (Bipa) and not the Central Procurement Board of Namibia (CPBN).
He was responding to questions about the procurement of pharmaceutical products for the Ministry of Health and Social Services around the alleged ownership of a company awarded the procurement contract by a five-year-old minor in the national assembly last month.
“The minor owning a company is not a procurement issue, but a company law matter. The right question we should therefore ask is whether or not it is right for minors to be allowed in terms of the Company’s Act to be shareholders in companies,” he said.
The issue was first raised by Popular Democratic Movement (PDM) parliamentarian Nico Smith, who questioned the ownership structure of the company and its eligibility for the contract.
The toddler is a 51% shareholder in Cospharm Investment (Pty) Limited, while his father, Zimbabwean national, Cosmas Mukaratirwa, owns 49%.
The company has been awarded a government tender to supply pharmaceuticals used in cancer treatment and psychotic disorders.
Shiimi told the National Assembly that he had sought legal advice from the Attorney General regarding the matter, specifically concerning minors’ ownership under the Companies Act of 2004.
The tender was approved as an open international bidding method, as per the provisions of the Public Procurement Act, due to the estimated value and the need for a competitive market.
Cospharm was initially disqualified due to a technicality in its bid.
However, during the reconsideration stage, it was found that a typed form with no errors had been included in their submission.
The company’s competitive pricing led to the re-evaluation of their bid and ultimately being awarded the contract for certain pharmaceutical products.
According to Shiimi, Cospharm’s bid was evaluated based on documented proof of the company’s registration, tax compliance, affirmative action status, employment records and financial stability
The company also submitted audited financial statements as part of its bid.
“The company in question that participated in the bidding process is a limited company (Ltd) and not a Closed Corporation. Thus, no founding statement was submitted, but a memorandum of association and articles of association, which are constitutive documents of limited companies,” said Shiimi.
He, however, assured the National Assembly that if the concerns about the alleged minor ownership is confirmed, appropriate action would be taken in accordance with the Public Procurement Act, including reporting the matter to law enforcement agencies.
Shiimi also refuted allegations that the CPBN operates in violation of the country’s laws, emphasizing their commitment to fair and transparent procurement processes.
“The board is committed to upholding fair dealing and integrity in both procurement processes and its interactions with the public,” he said.
He also clarified that Cospharm did not receive any local preference due to the presence of a Namibian shareholder and that the procurement of pharmaceutical products aimed to secure competitive prices and quality from foreign suppliers.
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