Iuze Mukube
Windhoek High Court Acting Judge Andrew Corbett on Friday dismissed an urgent application by Epupa Investment Technology, seeking to stop the Ministry of Finance from using Nampost to handle direct cash payment of social grants.
Judge Corbett struck the matter from the roll, effectively affirming the government’s decision to entrust Nampost with the distribution of grants to thousands of beneficiaries across the country.
While the Judge did not give the reasons behind his decision, apart from finding that the application lacked urgency, he indicated that they will be delivered on 16 October 2025.
The matter stemmed from the finance ministry’s decision for Nampost to assume responsibility for the monthly cash payments of government social grants and allowances, which include those for pensioners, persons with disability and children.
However, Epupa Investment lodged an application in court, not in favor of this decision, claiming the Ministry of Finance and its executive director and the Central Procurement Board of Namibia (CPBN) were violating section 2 of the Public Procurement Act, with this decision.
The company posited the issue was the unlawful award of a tender by the finance ministry’s executive director in secret and in circumstances where the ED refused to provide reasons for its decision, not that it wanted to extended its contract or that a previously advertised tender’s cancelation was unlawful.
Epupa argued that the unlawful award to Nampost was made in breach of the finance ministry’s written undertaking that a competitive public bidding process will be followed.
The Ministry of Finance fired back, arguing that the order Epupa is seeking will interfere with the government’s “commitment to provide social grants and amenities to the incapacitated, the indigent and the disadvantaged….”
It added the order will disrupt the monthly payment of N$1,600 on old-age grant, N$1,600 for disability grant, N$350 for children’s grant, and N$600 for conditional basic income grant, to beneficiaries.
Furthermore, entrusting Nampost to make monthly cash payments to social grant beneficiaries would save costs and achieve effectiveness and efficiency.
The ministry argued that prior to the application, Epupa had accepted that its contract was coming to an end and started making preparations for a handover, so it cannot at this stage in time force the ministry to continue hiring a private supplier, whose contract is expiring on 30 September.
“Epupa wants, through an interdict, to stop dead government’s provision of monthly social grants to vulnerable beneficiaries, yet it does not explain what happens to the provision of such services and who would step in to provide them if the interdict is granted,” said the ministry.
It added that such kind of litigation strategy was strange and self-defeating.
Further, it was pointed out that the cost of cash payments done by Epupa amounted to N$112.6 million a year, compared to a cost of N$57 million a year under the new payment system with Nampost, saving a whooping N$57 million.
It also argued that the prejudice to be suffered would be immense if the government fails to make such payment as the livelihoods of thousands of disadvantaged Namibians depend on such monthly grants.
Photo: Heather Erdmann