One of the companies which lost out on a multi-million-dollar tender to supply smart prepaid meters to the Rundu Town Council, has accused it of awarding the tender to a company without experience.
Netvend Metering Solutions is claiming Lwayaha Trading, which was selected as the successful bidder, does not have experience in installing water meters, and that it was selected unlawfully.
In court documents, Netvend’s managing member Pejaomati Hamukoto said a benchmarking exercise was done after the town council requested bids from four companies for a restricted tender. These were Netvend, ABC Investments, Item Engineering and Acqua Engineering Services.
But ABC Investments later requested that it be replaced by Lwayaha, which claimed to be in the process of restructuring.
Hamukoto stated that ABC claimed it and Lwayaha were owned by the same person.
He said the town council acceded to ABC’s request, which is unlawful.
It is Hamukoto’s stance that Lwayaha was not evaluated during the benchmarking exercise, and has no experience.
He continued that the company is riding on the back of ABC, which was part of the benchmarking exercise, and was never invited to bid for the tender.
Aggrieved by the town council’s decision, Hamukoto said he approached the review panel for reconsideration.
However, the review panel dismissed the application on 21 May.
“The first respondent (review panel) failed to consider that this was a restricted bid in which entities were shortlisted after doing a benchmarking exercise… the benchmarking exercise yielded the name ABC investment – not Lwayaha. Why? Because ABC Investment must have done some work,” said Hamukoto.
He added that Lwayaha was awarded the bid unlawfully, and Netvend should have been selected, given its experience and price.
Netvend offered to give its services at a price of N$6.3 million, while Lwayaha offered N$3 million, with an added inflation rate.
Netvend now wants the High Court to review and set aside the review panel’s decision to dismiss its reconsideration application.
The company furthermore wants the court to interdict the town council from entering into any contracts for the bid in question.
In relation to the request to set aside the tender, Netvend’s lawyer Appolos Shimakeleni argued that the entire bid process and the contract entered into between Lwayaha and the town council exceeds the thresholds set in the Public Procurement Act, which is set at N$3 million.
“The amount to be paid to the third respondent over the period of five years is in the region of N$17 million,” he submitted.
In response, Rundu Town Council CEO Olavi Nathanael said the application is not urgent, and Netvend has not made out a case why the matter must be returned to the town council and be re-evaluated.
He denied that Netvend applied for reconsideration, and that the town council conceded to serious irregularities and unlawful conduct in the bidding process.
He also denied that the companies were shortlisted after the benchmarking exercise, or that Lwayaha lacks experience.
Nathanael said that company is currently supplying water metering services to the Katima Mulilo Town Council.
“The applicant (Netvend) seeks self-serving orders. On one hand, they want the award, and if it is not being awarded, the bid must be cancelled,” he added.
On the substitution of the companies, the town council’s lawyer Mbushandje Ntinda argued the Act does not prohibit entities to decide to submit a bid with any of its subsidiaries or entity of its choice.
On the benchmarking exercise, he said the companies were not evaluated during that exercise.
“The benchmarking exercise was aimed at identifying the best possible product and software that may be used by the second respondent in its operations,” Ntinda continued.
He said no case has been made out, and requested the court to dismiss the application with costs.
Judge Orben Sibeya will deliver judgement on 21 June.
-mamakali@nepc.com.na