TransNamib dismisses corruption allegations on N$1.7 billion contract

TransNamib has denied allegations that its acquisition of 23 new locomotives valued at N$1.7 billion is a “last-minute corrupt deal”.

The company was responding to Affirmative Repositioning’s leader, Job Amupanda, who recently called for the cancellation of the acquisition of the new locomotives.

In a social media post over the weekend, Amupanda said the process lacks transparency and is being rushed to benefit “white interests” before the new administration takes office in March 2025.

“Recent claims made by Job Amupanda alleging that the procurement process is a ‘last-minute corrupt deal’ are unfounded and malicious. The process was initiated in 2022 and the eventual procurement of the locomotives are following all necessary steps in accordance with the Public Procurement Act,” TransNamib chief executive Desmond van Jaarsveld said in a statement on Monday.

He said TransNamib itself is not the procuring agency as the Central Procurement Board of Namibia, which has reviewed and approved all procurement, is the official body managing the process.

Van Jaarsveld said over the last 50 years, TransNamib’s fleet has predominantly featured General Electric/Wabtec locomotives, which have proven to be exceptionally reliable in Namibia’s harsh environmental conditions.

These units have surpassed their typical 25-year service life, with some still running after more than 50 years of operation, serving as the backbone of TransNamib’s fleet. In contrast, locomotives from other brands that TransNamib acquired in the past are all not operational.

“In light of these advantages, the decision to standardise the fleet with General Electric/Wabtec locomotives was made by TransNamib. Standardisation ensures operational efficiency, reduced maintenance costs, improved reliability and faster service, amongst other benefits. Sourcing directly from the manufacturer will eliminate the need for a third-party agent and will facilitate the building of a direct relationship with the manufacturer,” Van Jaarsveld said.

He said TransNamib’s board approved the standardisation initiative in 2022 and subsequent approvals were granted by lending institutions and the Ministry of Finance and Public Enterprises.
TransNamib has secured vital funding from the Development Bank of Southern Africa and the Development Bank of Namibia, which will be allocated according to the company’s Integrated Strategic Business Plan for the next five years.

“The funds will be used for necessary rolling stock replacement and infrastructure upgrades, with a focus on revenue generation to ensure long-term financial sustainability and repayment to lending institutions. It is important to note that TransNamib will not receive the funding directly. Disbursements related to the funding will be made directly to suppliers,” said Van Jaarsveld.