NAC cuts corner in N$250m contract

THE Namibia Airports Company (NAC) has shortlisted five companies to renovate the Hosea Kutako International Airport for N$250 million, amid concerns that the parastatal wants to cut corners by not advertising the tender.

NAC, a national agency which manages eight airports in the country, got the nod from the finance ministry last year not to advertise the N$250 million contract to upgrade the international airport on the grounds that the job was urgent, and fears of the looming downgrading of the facility.

This urgency, however, lapsed last year after the airport passed an international inspection at the end of 2018.

Sources said some NAC officials still used that exemption to hand-pick five companies for the upgrading contract.

A person close to the matter said the five shortlisted companies are Namibia Construction, Decora, Afrideca, Nexus and OJ Construction.

understands that the list of companies was passed on to NAC chief executive Bisey /Uirab when he took over from former acting CEO, Lot Haifidi.

Uirab, who joined NAC in April this year, denied that version, but did not reject the existence of a shortlist.

“Kindly note that we are in the middle of the procurement process. Please appreciate the fact that the aforesaid exemption enables NAC to appoint an appropriate service provider in accordance with the procedures,” he said.

NAC insiders questioned why the parastatal insists on not advertising.

Sources said NAC had asked a construction federation for a list of companies with a turnover of more than N$200 million.

A person familiar with the issue asked whether procurement plans had been finalised in accordance with the law, and whether the board had been briefed on the matter.

NAC has for years earned a reputation of having inflated tenders pushed through by some board members and executives at the parastatal, citing emergency. There have also been allegations of bribes.

The entity’s board cleaned up that reputation over the past two years, but it appears the jostle for tenders is back in play.

understands that a certain prominent board member and a clique of senior managers are colluding to push for secretive procurement processes.

Government officials have over the years used emergencies to push through contracts for their associates.

asked /Uirab to explain why he wants to run an institution that is cutting corners, using the smokescreen of emergency.

He insisted that NAC is taking all necessary steps to ensure that tender regulations are followed for the project which aims to correct safety and security concerns.

/Uirab said part of the N$250 million will be used to create additional space at the airport to enhance operations.

“Hosea Kutako International Airport is experiencing significant capacity issues that have resulted in congestion in the terminal building as well as the aircraft parking area,” he stated.

That’s how the short-term N$250 million tender comes in, he said.

/Uirab added that the company is now at the stage of market research for this tender process.

“The market research outlines the prescribed criteria to enable the selection of the appropriate service provider to carry out the relevant works in accordance with the appropriate procurement method [exemption],” he said.

NAC board chairperson Leake Hangala explained last year how the N$250 million will be used.

He said the upgrading project will include the revamping and modernisation of the check-in and departure halls, security screening points, arrivals hall, and the luggage handling areas.

“We will also take advantage of the upgrading to introduce the latest technologies and software systems related to self-check-ins, and screening for both passengers and luggage,” he noted.

Hangala said the funds will be managed “in the most accountable and transparent manner”.

Finance minister Calle Schlettwein ordered NAC to recall the consultants it appointed on an urgent basis, as they were not part of a procurement exemption granted to the parastatal.

The parastatal’s procurement committee awarded the consultancy contracts to Kerry McNamara Architects as architects, Buhrmann and Partners (Pty) Ltd as project managers, Windhoek Consulting Engineers as project engineers, and Frankle and Partners as quantity surveyors for the project.