ACC investigates Rundu tender flouting

THE Anti-Corruption Commission (ACC) has launched a preliminary investigation into allegations of the flouting of the procurement processes at the Rundu Town Council.

ACC public relations officer Josephina Nghituwamata on Tuesday confirmed that the anti-graft watchdog received complaints about the alleged irregular tender award and unlawful appointment of a legal consultant.

“The commission has launched a preliminary investigation into allegations relating to an alleged irregular gravel road rehabilitation tender award and appointment of a legal consultant,” she said.

According to her, at this stage, the commission was only gathering evidence to determine whether the corruption allegations warrant a full-scale investigation.

Documents seen by show that the Rundu Town Council, at its ordinary meeting held on 5 November 2019, resolved to enter into a barter deal with WFA Construction for the re-gravelling of roads at the town.

In terms of the deal, it awarded WFA Construction a contract to rehabilitate the town’s gravel roads in exchange for six plots valued at N$2,9 million.

The six plots include four plots each measuring between 4 000 and 4500 square metres and two plots measuring 5 996 and 6144 square metres.

Additionally, the council authorised that the company be paid N$3,8 million to cover fuel as well as labour costs.

WFA Construction CC’s owner, Willie Fourie de Villiers yesterday confirmed that council, towards the end of last year, appointed his company to start with road re-gravelling works.

However, he was quick to deny any wrongdoing regarding the awarding of the contract to his company.

“The former acting council CEO Herman Haingura had requested a proposal from my company on how to assist it with resurfacing gravel roads at the town… I did not approach any council staffer to be awarded the contract,” he contended, adding that proposals were also requested from three other companies, namely Road Contractors Company (RCC), Armstrong and Flipstone.

Fourie said his company had proposed to re-gravel the town’s roads at a cost of N$7 million, adding that his company had been awarded the contract because of the proposed low cost for working on the road project.

According to him, the land offered as a medium of payment only emerged at a meeting where he presented his proposal to the council.

“I am not conversant with council’s procurement processes, thus I was not aware that procurement rules were broken if that’s the case,” he said, adding “If I had known that the council had broken procurement processes, I would not have accepted the deal.”

“If there is any wrongdoing, the council must answer,” he fumed.

The public procurement guidelines stipulate that a schedule 2 town may draw up a list of service providers that are known to the entity to directly solicit proposals.

However, in the case where the cost estimate is above N$5 million, the council must publish an expression of interest in a widely circulated newspaper.

The contractor revealed that his company stopped work on the road project mid-January due to non-payment of an invoice amounting to N$560 000 for work that had been completed.

“I did not give anyone a dollar, nor did I receive a rand from the road project to this date,” he said.

Sources indicated that the ministry demanded from the council the contractor’s appointment letter and council procurement committee meeting minutes before it could release the N$3,8 million the council had requested for the road resurfacing project from the annual N$8 million budget for capital projects funded by the government.

Fourie said council owes him an explanation if allegations that the contract had been unlawfully awarded to his company were true.

“I reserve my right to seek legal recourse against the council if my company’s reputable name appears in a newspaper’s article relating to corrupt practices,” he threatened.

The contractor welcomed ACC’s investigation into the alleged corrupt awarding of the contract in question.

Urban and rural development minister Peya Mushelenga yesterday could not be reached for comment, as he was out of office.

The Rundu council has been in the limelight lately over the withdrawal of Swapo Party representatives by the party’s district executive over alleged defiance of party orders.

The council is running on autopilot, as the party’s district executive has blocked the annual election of the council’s political office bearers.

luqman@namibian.com.na