Rail tender raises eyebrows
Information leaks alleged
Sources in the Ministry of Works and Transport have questioned why tenders for the procurement and delivery of rails have been invited while the ministry could have instructed TransNamib, the national carrier mandated to do so, to source a supplier.
Three tenders for the supply of 60 000 tons of rail for the railway sections from Walvis Bay to Kranzberg, Kranzberg to Otjiwarongo, and Otjiwarongo to Tsumeb worth a combined N$1.5 billion, closed on 9 August.
The ministry received 75 bids, predominantly Chinese companies in joint ventures with Namibian partners, for each of the tenders. There were also Zimbabwean and Zambian bidders.
“Globally there is only a handful of suppliers of rail,” said one source. “The correct way would have been for the ministry to ask TransNamib to source the rails from an accredited manufacturer that meets the technical requirements to ensure you get best value for money. If we are to believe that President [Hage] Geingob wants things to be done cost effectively then this is a classic example why things should not be done in this manner.”
The sources, who spoke on condition of anonymity, said there are already 48 kilogrammes per meter (kg/m) rails on the Walvis Bay to Usakos railway. Although there may be parts that need new rails, old stock could still be used for the next 20 years or so.
They said some rails have also been dropped off near Tsumeb recently.
They concluded that there was no survey done on the real need for rails. Similarly, they charged that there is no rail expertise in the ministry’s Directorate of Railway Affairs since the departure of former director Robert Kalomo.
There are currently three Zimbabwean nationals working in this directorate.
The requisite 60 000 tons of rail would cover a distance of 600 kilometres, which, considering the country’s capacity, would take no less than ten years to lay.
“It is incomprehensible that the ministry wants to buy rails in such a large quantity all at the same time. Where does the money come from to buy massive amounts of rails that will not be in use for the next ten years? Where are these rails to be kept in the meantime? Are they going to lie around rusting next to railway lines?” asked one source.
Equally disconcerting, said the sources, is that most of the money will leave the country because there are no local suppliers of rails.
“Only a fraction of the money will eventually be spent here and hopefully create jobs. Why is the ministry pushing that this be done in such a hasty and seemingly wasteful manner?” asked a source.
INSIDER INFORMATION?
Despite the fact that the three tenders were only advertised earlier this year, South African rail suppliers claimed that they had received furtive visits in November last year already from ministerial staff as well as Zimbabweans and Zambians finding out prices in anticipation of the massive rail tenders.
Sources say it is clear that these visitors had privileged information that could only have originated from the ministry since there were no consultants used on these tenders.
“It is clear that information was leaked to get certain players lined up for the very lucrative tenders. The tenderpreneurs know about these tenders long before they are announced in public,” the sources claimed.
One South African supplier claimed that the controversial Zimbabwean businessman Ian Haruperi was one of those who asked about the price of rail in view of the tenders.
Haruperi in 2012 was described by Zambian media as “a member of a regional network of crooks specialising in fraudulent seizing of immovable property by operating an opaque loan scheme”.
He is considered to have close ties with South African President Jacob Zuma since he accompanied Zuma on a trip to Russia and China in 2011.
Questions sent to the Ministry of Works and Transport on 11 August remain unanswered.
CATHERINE SASMAN
Three tenders for the supply of 60 000 tons of rail for the railway sections from Walvis Bay to Kranzberg, Kranzberg to Otjiwarongo, and Otjiwarongo to Tsumeb worth a combined N$1.5 billion, closed on 9 August.
The ministry received 75 bids, predominantly Chinese companies in joint ventures with Namibian partners, for each of the tenders. There were also Zimbabwean and Zambian bidders.
“Globally there is only a handful of suppliers of rail,” said one source. “The correct way would have been for the ministry to ask TransNamib to source the rails from an accredited manufacturer that meets the technical requirements to ensure you get best value for money. If we are to believe that President [Hage] Geingob wants things to be done cost effectively then this is a classic example why things should not be done in this manner.”
The sources, who spoke on condition of anonymity, said there are already 48 kilogrammes per meter (kg/m) rails on the Walvis Bay to Usakos railway. Although there may be parts that need new rails, old stock could still be used for the next 20 years or so.
They said some rails have also been dropped off near Tsumeb recently.
They concluded that there was no survey done on the real need for rails. Similarly, they charged that there is no rail expertise in the ministry’s Directorate of Railway Affairs since the departure of former director Robert Kalomo.
There are currently three Zimbabwean nationals working in this directorate.
The requisite 60 000 tons of rail would cover a distance of 600 kilometres, which, considering the country’s capacity, would take no less than ten years to lay.
“It is incomprehensible that the ministry wants to buy rails in such a large quantity all at the same time. Where does the money come from to buy massive amounts of rails that will not be in use for the next ten years? Where are these rails to be kept in the meantime? Are they going to lie around rusting next to railway lines?” asked one source.
Equally disconcerting, said the sources, is that most of the money will leave the country because there are no local suppliers of rails.
“Only a fraction of the money will eventually be spent here and hopefully create jobs. Why is the ministry pushing that this be done in such a hasty and seemingly wasteful manner?” asked a source.
INSIDER INFORMATION?
Despite the fact that the three tenders were only advertised earlier this year, South African rail suppliers claimed that they had received furtive visits in November last year already from ministerial staff as well as Zimbabweans and Zambians finding out prices in anticipation of the massive rail tenders.
Sources say it is clear that these visitors had privileged information that could only have originated from the ministry since there were no consultants used on these tenders.
“It is clear that information was leaked to get certain players lined up for the very lucrative tenders. The tenderpreneurs know about these tenders long before they are announced in public,” the sources claimed.
One South African supplier claimed that the controversial Zimbabwean businessman Ian Haruperi was one of those who asked about the price of rail in view of the tenders.
Haruperi in 2012 was described by Zambian media as “a member of a regional network of crooks specialising in fraudulent seizing of immovable property by operating an opaque loan scheme”.
He is considered to have close ties with South African President Jacob Zuma since he accompanied Zuma on a trip to Russia and China in 2011.
Questions sent to the Ministry of Works and Transport on 11 August remain unanswered.
CATHERINE SASMAN
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