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Thursday 18 July 2019
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RCC subcontracts Chinese firm to service Goreangab land

The Roads Contractor Company (RCC) has subcontracted a Chinese firm to do land servicing work on Goreangab Extension 4 under the Mass Urban Land Servicing project. The was done despite the appointment being rejected by the consultant, Windhoek Consulting Engineers(WCE), in September on the basis that the Chinese company lacks Namibian participation.  China State Construction Engineering Corporation was subcontracted for N$27,971,421.27 despite it not meeting all the tender regulations. The total project value is N$64,333,864.71. “We have worked with this company in the past and they are our partners in other projects. The decision to appoint the subcontractor was taken in the best interest of the project and a competent contractor was recommended,” said RCC CEO Tino !Hanabeb yesterday, adding that the client[City of Windhoek] cleared the appointment.
He said the move to bypass the normal tender rules was not meant to sideline Namibians. “RCC and JDN Construction will do 58% of the work, meaning Namibians still benefits,” he said. Official correspondence seen by The Patriot reveals that WCE disapproved the awarding of the tender to China State Construction Engineering Corporation to sub-contract due to lack of evidence to support Namibian equity participation, as stipulated by RCC’s procurement policy, Tender Board regulations, Procurement Act and the conditions of the contract.
The decision stems from the fact that RCC’s procurement policy states that the procurement of subcontractors will be done in line with RCC policies, which states that subcontractors must be 51% Namibian owned and 30% owned by previously disadvantaged Namibians. RCC informed WCE in August that it intended to sub-contract parts of the works to JDN Construction to construct all underground services as well as appoint “a competent and experienced sub-contractor[CSCEC]  to construct all permanent works”.  This information is contained in a letter sent to WCE managing director Johan du Toit by !Hanabeb on 16 August 2016. In the same letter, !Hanabeb vowed that the procurement of the subcontractors will be done in line with RCC’s procurement policy. “The subcontractors must be 51% Namibian owned and 30% owned by previously disadvantaged Namibians,” stressed the CEO.
But despite !Hanabeb’s assurance, RCC’s board on 14 September 2016 approved the awarding of the tender for the provision of sub-contract services on Section 2 of the works to Tender 3 to CSCEC for a total price of N$27,971,421.27 despite it lacking Namibian participation. A week after WCE was informed about the resolution, Du Toit wrote to the Ministry of Urban and Rural Development expressing grave reservations about the appointment of China State Construction Engineering Corporation for the provision of subcontracting services on Section 2 of the works on the basis of the lack of Namibian Participation. “It needs to be duly brought to light that CSCEC is stated as being a subsidiary of CSCEC in Beijing, China in their Company profile. There is no mention of any Namibian ownership/participation in the documents that were provided to WCE,” said Du Toit.
He added that despite the Chinese firm having significant experience, there are reservations about CSCEC’s experience within the borders of Windhoek, especially where construction of civil services is concerned. “The engineer disapproves of the CSCEC sub-contract due to a lack of evidence to support Namibian equity participation, as stipulated in the RCC’s procurement policy, the requirements from government through the Tender Board, the Procurement Act and this project’s signed contract,” said Du Toit.  What the tender rules say RCC’s procurement policy states that the procurement of sub-contractors will be done in line with the company’s procurement policy which states that sub-contractors must be 51% Namibian owned by previously disadvantaged Namibians. While Tender Board regulations clearly states that: “If the tender amount exceeds N$20 million but does not exceed N$60 million, such tenders must be reserved for entities which has equity participation of 100% that is owned by Namibian persons of which no less than 30% is owned  by previously disadvantaged persons.” If the tender exceeds N$60 million however, preference will be granted to entities which have equity participation of no less than 51% that is owned by Namibian persons of which no less than 30% is owned by previously disadvantaged  Namibians. A clause in the project contract to service the Goreangab land in Ext 4 clearly states that no unskilled labourer may be employed on the works unless he or she is Namibian. It is a further condition that no skilled or semi-skilled non-Namibian person may be employed on the work unless the contractor can prove that there is no suitably trained Namibian citizen available.




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