Luvindao addresses concerns over Ramatex rental plan

Health minister Dr Esperance Luvindao has clarified that the ministry never opted to rent facilities for the central medical stores, explaining that government is pursuing a rent-to-own arrangement.

Luvindao, speaking in parliament last Wednesday, explained that the decision was informed by a cost-benefit analysis, which found that immediate storage needs for pharmaceuticals could not wait for a construction process expected to take two to three years.

“We found that the ongoing challenges regarding pharmaceuticals, particularly the need for adequate storage space, required an immediate solution,” she said.

She added that renovating an existing facility would still deliver a state-of-the-art solution while avoiding delays associated with new construction.

The minister also dismissed concerns about donor unease, saying engagements had already taken place with the Global Fund.

“It is interesting that you mention concerns from the Global Fund, because their country lead met with me in my office just a few days ago,” she said.

According to Luvindao, the discussions focused on compliance requirements, including providing proof of ownership of the facility within a specified timeframe. She said processes such as a potential land swap are already under way to secure the necessary documentation.

Concerns raised

However, Independent Patriots for Change (IPC) member of parliament Michael Mulunga raised concerns about what he described as conflicting positions on the project.

He said that during the budget discussions, Luvindao indicated the ministry had opted to rent space at Ramatex, while more recent media reports suggest the tender has been cancelled.

He further pointed to reported concerns from the Global Fund and uncertainty surrounding the commitment of funding allocated for the construction of the central medical stores.

“It now appears there is confusion,” Mulunga said.

He questioned whether government is proceeding with construction or shifting toward renting facilities, calling for clarity on the way forward.

Tender reportedly cancelled

Meanwhile, The Namibian reported that the Ministry of Health and Social Services requested that the Central Procurement Board of Namibia cancel a N$194 million tender to build new central medical stores in Windhoek.

The move reportedly follows concerns that were allegedly raised by the Switzerland-based Global Fund over the redirection of its N$194 million donation, originally earmarked to build the facility.

Media reports last month indicated that the ministry opted instead to rent a portion of the former Ramatex Rhino Garments building in Otjomuise for N$100 000 per month.

In a letter dated 16 April to the board’s executive officer, Idi Itope, executive director of health and social services Penda Ithindi said there was an executive directive to cancel the tender.

“Based on the request from the ministry’s user unit, technical team and in line with an executive directive, the ministry’s procurement committee agreed with the recommendation that the Central Procurement Board of Namibia cancel the bid,” he wrote.

The ministry said the expected outcome of the project did not justify its cost.

The tender, which closed on 13 January, covered the construction of a proposed new medical stores facility and refurbishment of an existing warehouse in the Khomas region.

Ithindi said the cancellation was done in terms of Section 54 of the Public Procurement Act, which allows for a bidding process to be terminated if it fails to achieve the expected outcome.

[email protected]