Minister flags N$179m August 26 quote

Agriculture minister Inge Zaamwani has questioned a N$179 million quotation from August 26 Construction for a border fence project, citing cost concerns and procurement issues amid efforts to curb foot-and-mouth disease (FMD).

Zaamwani is understood to have reservations about the high cost and proposed involving the National Youth Service (NYS) or the Namibian Defence Force (NDF) to assist in setting up the fence.

The Namibian was tipped off three weeks ago that the minister was under pressure to approve the transaction after she initially pushed back handpicking August 26.

Zaamwani poured cold water on those allegations, insisting that her intervention was made as part of the process.

Responding to questions from The Namibian, Zaamwani says she was briefed by the chief veterinary officer (CVO) about progress on the border fence to tackle the FMD outbreak from South Africa.

The fence would stretch for about 400 kilometres along the Namibia-South Africa border and prevent any potential virus from moving from the north or across borders into the central/southern commercial zones.

According to Zaamwani, after being briefed, the CVO informed her about a quote from August 26.

She said she was informed that the Ministry of Agriculture, Fisheries, Water and Land Reform did not have the required funds to undertake the project.

During that meeting, the minister also recommended that the ministry obtain two or three quotations for competitive purposes.

The CVO, Zaamwani says, told her about the August 26 quotation’s background and the difficult terrains the fence has to traverse.

“I then decided to consult further to see if we could come up with another solution which may be less costly considering that we have a budgetary issue not necessarily because of corruption suspicions as it’s alleged.”

Zamwaani explains that after receiving a costly quote from August 26, she sought alternative labour models to save public funds.

This included a proposal for the ministry to supply all materials and equipment while using the NYS and NDF to erect the fence.

“It turned out that even that option was not going to be more cost effective. At no time did I make statements related to such serious allegations,” she says.

Details about the latest fence tender come at a time when various economy players, including the Namibia Construction Federation, warned against companies such as August 26 and Roads Contractor Company for tenders.

August 26 has been handpicked for several tenders, including the N$50-million Wanaheda Namibia Traffic Information System project and the refurbishment of a wing at Windhoek Central Hospital to accommodate government workers.

Ministry spokesperson Romeo Muyunda confirmed to The Namibian last month that the ministry had initiated an emergency procurement process to fast-track a veterinary fence.

He said August 26 was the only company invited to submit a quotation under a direct procurement process to conduct a technical assessment and provide a cost estimate for the project.

“Given the urgency of the situation and the need for rapid intervention, the ministry initiated a process under emergency procurement provisions, specifically using the method of execution by a public entity.

In this context, August 26 was approached to conduct a technical assessment and provide a cost estimate for the project,” he said.

Muyunda said the project was halted due to budgetary concerns.

“Following its assessment, August 26 submitted a quotation amounting to approximately N$179 million for the proposed works.

However, due to prevailing budgetary constraints, the ministry has not proceeded with the project,” he said.

Sources in the ministry say the project could still proceed at a reduced rate as negotiations between August 26 and the ministry continue.

August 26 declined to comment, stating that it is awaiting feedback from the ministry.

“You are contacting the wrong person, you should contact the ministry to provide you with all the answers.

So far we have still not received feedback from the ministry of agriculture regarding our quotation,” August 26 managing director Martha Endjala said last week.

Former agriculture minister Calle Schlettwein last week said direct or emergency procurement always opens a door for corruption.

“That is the risk of having direct procurement: it opens up corruption and insiders disqualifying each other,” he said.

He advised the ministry to follow the procurement process for a better price.

“The ministry’s best chance is to get realistic prices to do an open tender where everyone is invited and no corruption is involved, do it the right way.”

Independent Patriots for Change shadow minister for agriculture Michael Mulunga says his party welcomes the ministry’s decision to reject the N$179-million quotation.

“This demonstrates the government’s commitment to prudence, fiscal discipline, transparency, and proper procurement procedures.

“The manner in which this contract was to be awarded raised serious red flags that cannot be ignored,” he said.

He adds that the project is not urgent enough to warrant the ministry to source a single quotation.

“Fencing is a common service with multiple qualified contractors in the Namibian market.

Using an emergency clause without transparent justification undermines public trust and opens the door to favoritism, cronyism, or worse.

“We should, therefore, avoid using emergency provisions as a blanket excuse to bypass market testing,” he said.

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