Govt cuts fleet fat with single-vehicle policy
Tight budget leads to revision
Given current fiscal constraints and the impracticality of office bearers deciding which vehicle to use for which trip, the Public Office Bearers Commission has revised government's vehicle policy, permitting procurement of one off-road vehicle per office bearer, serving both on-road and off-road requirements.
This is according to works and transport minister Veikko Nekundi, who said the move eliminates dual vehicle usage, reduces fleet size and simplifies logistics, “a rare instance where doing less actually achieves more.”
The single off-road vehicle policy, compared to the previous dual-vehicle allocation, represents substantial savings, reduced initial capital outlay, lower insurance and licensing costs, simplified fleet management, reduced maintenance complexity and improved disposal efficiency, he noted.
“These principles underscore our unwavering commitment to fiscal prudence and procurement accountability in all government transactions. We seek not the cheapest option, but the best value, a distinction that separates prudent stewardship from penny-wise, pound-foolish decision-making,” he said, responding to questions by PDM leader McHenry Venaani in Parliament last Thursday.
The minister explained vehicle specifications for public office bearers are determined by the commission based on functional requirements and fiscal realities.
“During the previous term, the policy allocated sedans for urban use with shared off-road vehicles for rural and constituency engagement," he noted.
However, recognising current fiscal constraints and the impracticality of having office bearers deliberate which vehicle to use for which journey, the commission "has prudently revised the policy," he confirmed.
Nekundi said the new rules exemplify government's approach to balancing functional requirements, fiscal responsibility, safety imperatives and transparency obligations.
Fleet renewals
He explained that for the government’s general operational fleet, vehicles remain in service for a maximum of five years or 120 000 km, whichever comes first.
“Upon reaching these thresholds, vehicles are disposed of through public auction, subject to Treasury approval, ensuring transparency and optimal value recovery for the state," he explained.
Under the policy, fleet replenishment occurs at the start of each new term of appointment. “Office bearers pay 1.5% monthly of the vehicle’s value throughout their tenure. They retain purchase options of the vehicles allocated to them at the conclusion of their term at a 20% annual depreciation rate, less N$100 per every 1 000 km. Vehicles not purchased by office bearers are disposed of through public auction with Treasury approval.”
The minister confirmed that the transport ministry procured 20 Toyota Land Cruiser Prados for the current term’s fleet requirements earlier this year.
Total expenditure amounted to N$24 million for the new fleet, sourced from the operational budget allocation approved during the previous financial year.
"I note for the record that this represents approximately N$1.2 million per vehicle, a figure that warrants contextualisation against the vehicle specifications," he added.
Duty of care
Nekundi emphasised that vehicle procurement demands rigorous assessment beyond purchase price.
“Our accountability framework encompasses durability across varied operational environments, from the tar roads of Windhoek to the sandy tracks of the Zambezi region, maintenance requirements and service network availability across all 14 regions, post-service life cycle costs, including resale value and disposal considerations, and user safety, which remains paramount in our procurement decisions."
He further noted that the vehicles "serve office bearers across the political spectrum, including the official opposition leadership. Safety is neither a partisan nor a luxury consideration; it is a fundamental duty of care."
After a thorough overview of the procurement process, the minister said the Land Cruiser Prado was selected based on demonstrable advantages: superior durability proven across diverse African terrain conditions, renowned reliability reducing operational downtime, maintenance cost efficiency over the vehicle’s operational life cycle and service availability throughout Namibia’s regions, a critical consideration given our geographic spread.
“I would observe that while some may question the initial capital outlay, the true measure of value lies not in the sticker price but in the total cost of ownership. A cheaper vehicle that spends half its service life under repair represents a false economy, a lesson the government has learned, occasionally through expensive experience,” he noted.
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This is according to works and transport minister Veikko Nekundi, who said the move eliminates dual vehicle usage, reduces fleet size and simplifies logistics, “a rare instance where doing less actually achieves more.”
The single off-road vehicle policy, compared to the previous dual-vehicle allocation, represents substantial savings, reduced initial capital outlay, lower insurance and licensing costs, simplified fleet management, reduced maintenance complexity and improved disposal efficiency, he noted.
“These principles underscore our unwavering commitment to fiscal prudence and procurement accountability in all government transactions. We seek not the cheapest option, but the best value, a distinction that separates prudent stewardship from penny-wise, pound-foolish decision-making,” he said, responding to questions by PDM leader McHenry Venaani in Parliament last Thursday.
The minister explained vehicle specifications for public office bearers are determined by the commission based on functional requirements and fiscal realities.
“During the previous term, the policy allocated sedans for urban use with shared off-road vehicles for rural and constituency engagement," he noted.
However, recognising current fiscal constraints and the impracticality of having office bearers deliberate which vehicle to use for which journey, the commission "has prudently revised the policy," he confirmed.
Nekundi said the new rules exemplify government's approach to balancing functional requirements, fiscal responsibility, safety imperatives and transparency obligations.
Fleet renewals
He explained that for the government’s general operational fleet, vehicles remain in service for a maximum of five years or 120 000 km, whichever comes first.
“Upon reaching these thresholds, vehicles are disposed of through public auction, subject to Treasury approval, ensuring transparency and optimal value recovery for the state," he explained.
Under the policy, fleet replenishment occurs at the start of each new term of appointment. “Office bearers pay 1.5% monthly of the vehicle’s value throughout their tenure. They retain purchase options of the vehicles allocated to them at the conclusion of their term at a 20% annual depreciation rate, less N$100 per every 1 000 km. Vehicles not purchased by office bearers are disposed of through public auction with Treasury approval.”
The minister confirmed that the transport ministry procured 20 Toyota Land Cruiser Prados for the current term’s fleet requirements earlier this year.
Total expenditure amounted to N$24 million for the new fleet, sourced from the operational budget allocation approved during the previous financial year.
"I note for the record that this represents approximately N$1.2 million per vehicle, a figure that warrants contextualisation against the vehicle specifications," he added.
Duty of care
Nekundi emphasised that vehicle procurement demands rigorous assessment beyond purchase price.
“Our accountability framework encompasses durability across varied operational environments, from the tar roads of Windhoek to the sandy tracks of the Zambezi region, maintenance requirements and service network availability across all 14 regions, post-service life cycle costs, including resale value and disposal considerations, and user safety, which remains paramount in our procurement decisions."
He further noted that the vehicles "serve office bearers across the political spectrum, including the official opposition leadership. Safety is neither a partisan nor a luxury consideration; it is a fundamental duty of care."
After a thorough overview of the procurement process, the minister said the Land Cruiser Prado was selected based on demonstrable advantages: superior durability proven across diverse African terrain conditions, renowned reliability reducing operational downtime, maintenance cost efficiency over the vehicle’s operational life cycle and service availability throughout Namibia’s regions, a critical consideration given our geographic spread.
“I would observe that while some may question the initial capital outlay, the true measure of value lies not in the sticker price but in the total cost of ownership. A cheaper vehicle that spends half its service life under repair represents a false economy, a lesson the government has learned, occasionally through expensive experience,” he noted.
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