Private caterer Pamo Trading Enterprises is taking the government to court to challenge a N$540-million hostel food tender awarded to the Namibia Training Authority.
In terms of the tender award, the Namibia Training Authority (NTA) would supply food to 239 government school hostels accommodating 77 281 pupils nationwide.
Executive director of education, innovation, youth, sport, arts and culture Erastus Haitengela on 29 June informed NTA executive officer Erick Nenghwanya of the decision to award a contract to supply and deliver food to state hostels nationwide for six months.
An application was filed by Pamo Trading Enterprises at the Windhoek High Court on 20 July.
In the application, the education ministry is cited as the first respondent, the chairperson of the NTA as the second respondent, the minister of finance as the third respondent, and the chairperson of the Central Procurement Board of Namibia (CPBN) as the fourth respondent.
“Take notice that Pamo Trading Enterprises intends to make an application to this court for an order that the first respondent’s decision and award dated 29 June 2026 issued in favour of [the NTA] respondent is hereby reviewed and set aside,” the company’s application says.
Pamo Trading Enterprises is also seeking an order declaring null and void any formal procurement contracts signed between the ministry and the NTA following that award.
‘CLANDESTINE, UNLAWFUL’
In a sworn statement filed at the court, Pamo Trading Enterprises managing director Leon Lombard accuses the education ministry of orchestrating a “clandestine”, closed-door arrangement.
He claims the process was deliberately kept secret from private caterers and the public.
Lombard says Pamo had been supplying food to hostels since 2024 under a short-term contract that was repeatedly extended until 30 June, while a long-term national tender remained embroiled in legal battles.
However, on 24 June this year, the Zambezi Regional Council wrote to Pamo requesting an “interim arrangement” to supply food until 6 July during a “transition period” while long-term arrangements were finalised, Lombard says.
Days later, on 29 June, the ministry abruptly issued a letter confirming that Pamo’s contract would expire on 30 June and would not be extended.
On the same day, Haitengela issued an official award letter handing the entire national hostel catering deal to the NTA from 1 July to 31 December 2026.
“During late May and June 2026, I heard that the ministry intended to invite various governmental departments to participate in a procurement process […] closed to the public.
“I also heard that the chosen government department bidder would then subcontract all services to private companies of their choosing,” Lombard says.
He argues in his affidavit that if public entities subcontract the work out to unvetted private companies, those third parties would make millions without facing open competitive bidding – effectively sidestepping the Public Procurement Act.
In the award letter of 29 June, Haitengela invokes Section 34(g) of the Public Procurement Act, which allows for the direct execution of a contract by a public entity if that entity has the capacity to do the work on behalf of the government.
Lombard, however, contends the ministry has misapplied the law.
He says for a public entity to qualify under Section 34(g), it must have the internal capacity to perform all of the work itself, rather than handing the work over to private subcontractors.
Furthermore, Pamo points out that under Section 5 of the Vocational Education and Training Act, the statutory mandate of the NTA is strictly limited to overseeing vocational education, funding training providers and developing occupational standards.
“Neither Section 5 nor any other provision of the VET Act permits the NTA to supply and deliver food to government school hostels as a public entity.
The NTA itself is bound by procurement laws if it seeks to contract private firms,” Lombard states in his affidavit.
Court documents show that Nenghwanya submitted a list of 14 regional focal persons to the ministry to coordinate food deliveries across all regions on 2 July.
The award letter outlines set man-day prices across nine regional lots, ranging from N$37.80 to N$38.70 per primary school pupil per day, and N$45.70 to N$46.80 per high school pupil per day.
Acting executive director of education Edda Bohn last week told the Namibian Broadcasting Corporation that the ministry followed all processes in awarding the tender to the NTA.
“The NTA is a public entity, and when we study the Public Procurement Act, we have provision for procurement and one of them is from the public entity which is now from the ministry to the public entity, so through that provision that is what made it possible,” she said.
Bohn said the ministry has previously been taken to court over the same contract.
“We find ourselves in a peculiar situation where the ministry at many times has been taken to court over particular contracts that are ordered through competitive bidding and for the supply of food to government school hostels,” she said.
“You have to view it in the context that the act makes provision for the minister to act under certain circumstances.
The circumstances surrounding the delivery of food services to government school hostels were such that the minister was mandated to make that decision,” she said.
Bohn said the contract value is calculated based on the total number of hostel days.
“The cost works out to about N$90 million per month, which translates to less than N$40 per meal per pupil,” she said.
The respondents in the matter have been given time until 11 September to indicate whether they intend to oppose the application.
Pamo Trading Enterprises is being represented by lawyer Cobus Visser of the law firm Koep & Partners.
