Lahja Nashuuta
The Otjiwarongo Municipality has denied allegations of irregularities and favouritism in the awarding of a N$14 million tender for the construction of bulk water supply infrastructure in Orwetoveni Extensions 24 and 25.
This follows allegations that the municipality has bypassed standard procurement procedures by awarding the contract to Ndakalimwe Investment CC under an emergency procurement arrangement, excluding 19 other companies that had initially bid for the project.
Documents seen by New Era confirm that the open national tender attracted 19 bidders in April 2025. However, on 16 May, Otjiwarongo’s Chief Executive Officer, Mberipura Hifitikeko, informed all bidders that the tender had been cancelled.
“Kindly be informed that the bid, W/ONB/OTM/13/2024 for the Construction of Bulk Water Supply Infrastructure for Orwetoveni Extensions 24, 25, and a portion of the Reception Area was cancelled in accordance with Section 54(1)(e) and (2) of the Public Procurement Act, 2015 (Act No. 15 of 2015), as it was not affordable for council to proceed with the bid,” the email stated.
In the same communication, Hifitikeko admitted that the bid was advertised without following the required internal processes, including approvals from the Accounting Officer and the Procurement Committee, as stipulated by the Procurement Act and its regulations.
“Council consulted the Procurement Policy Unit, which advised that any action taken must remain in full compliance with applicable regulations. As a result, council resolved to cancel the bid,” Hifitikeko explained.
Despite this explanation, one bidder who spoke on condition of anonymity highlighted a series of developments that left many contractors confused and disgruntled.
“Initially, in May, we were told the tender was postponed to allow the municipality to resolve internal issues. We accepted that. Then in July, we received an email stating the bid had been cancelled altogether. Shortly after, we learned that a company had already been awarded the contract,” the bidder said.
“When we followed up, we were told the municipality had decided to use the emergency procurement method. However, none of the original bidders were contacted again. We later found out that only Ndakalimwe Investment CC was approached for a quotation,” the contractor alleged.
However, the municipality denied selective tendering, saying the process was legal and justified under emergency provisions.
Municipal Head of Procurement Management Committee, Else Hijarunguru, confirmed to New Era that Ndakalimwe Investment CC was awarded the emergency tender W/EP/OTM-03/2025, valued at N$13,976,944.53 (VAT inclusive). The contract was signed on 20 June 2025, with a duration of eight months.
She reiterated that the original tender was cancelled due to financial constraints and non-compliance with the procurement framework.
Hijarunguru said funding for the project was later secured through the Ministry of Urban and Rural Development under the 2025/26 Medium-Term Expenditure Framework.
“The bulk water infrastructure is a prerequisite for several ongoing projects, including internal water reticulation by the municipality, and land servicing initiatives by Development Workshop Namibia (DWN), Namibia Housing Action Group (NHAG), and the Shack Dwellers Federation of Namibia (SDFN),” she noted.
“By the time funding was approved, many of these dependent projects were already underway. This created urgency, and in line with Section 33(3)(c) of the Public Procurement Act, council was justified in invoking emergency procurement,” Hijarunguru said.
She also confirmed that a full Emergency Procurement Report was submitted to the Procurement Policy Unit, as required by law.
However, many of the original bidders remain unconvinced and believe the process lacked transparency.