Minor’s N$1.3bn tender on ice
Africure wins with costs
Cospharm Investments' $1.3 billion tender award has been put on hold, pending the outcome of a review application.
The Central Procurement Board of Namibia has been prohibited from implementing or executing any procurement contract awarded to Cospharm Investments.
This after Africure Pharmaceutical Namibia this week brought an urgent application in the Windhoek High Court, prohibiting Cospharm and the CPBN from implementing or carrying out tender G/OIB/CPBN01/2022, pending the outcome of a review application brought on 11 August.
Judge Boas Usiku also ordered that Cospharm and the CPBN pay Africure's costs.
Applications for the above tender closed on 8 November 2022 and on 26 April this year, the CPBN announced that Africure was one of the successful bidders and was commissioned to supply pharmaceutical products worth N$123 million.
Cospharm was unsuccessful and submitted an application for reconsideration to the CPBN on 2 May.
In terms of the Procurement Act, the council was obliged to reconsider its decision within seven days and to inform Cospharm of its resulting decision. However, this did not happen and Cospharm submitted another application to the review panel on 24 May.
Two days later, the board ordered its tender evaluation committee to re-evaluate the company's tender.
Reduced award
On 6 June, Cospharm withdrew its application for review from the panel and about two months later, the council issued a new notice on 3 August in which a tender of N$1.3 billion was awarded to Cospharm.
The value of Africure's award was also reduced from N$123 million to N$45 million.
Africure consequently submitted an application to the review panel on 11 August, challenging the decision that arose due to Cospharm's application for reconsideration.
The CPBN sent acceptance letters to all successful tenderers in mid-August, requesting them to provide 10% of the contract value as security within 30 days.
If this did not happen, another company would be chosen.
Background
The CPBN's decision to award a contract worth N$1.3 billion to a company - in which a five-year-old girl holds the majority share - to supply pharmaceutical products to government has left other companies in awe.
The fact that Cospharm was initially eliminated from the race and filed an appeal, only to later win the tender, plunged the tender of more than N$1 billion into controversy. The company was initially disqualified because it apparently changed the tender price on its documentation without initialing next to the change.
Cospharm is owned by Zimbabwean businessman Cosmos Mukaratirwa (49%) and his child, a Namibian citizen, who owns 51%, according to company records.
Mukaratirwa was thrust into the spotlight about three years ago after he was arrested for allegedly selling unregistered medicines worth N$657 800 to the health ministry. He was released on a warning.
– [email protected]
This after Africure Pharmaceutical Namibia this week brought an urgent application in the Windhoek High Court, prohibiting Cospharm and the CPBN from implementing or carrying out tender G/OIB/CPBN01/2022, pending the outcome of a review application brought on 11 August.
Judge Boas Usiku also ordered that Cospharm and the CPBN pay Africure's costs.
Applications for the above tender closed on 8 November 2022 and on 26 April this year, the CPBN announced that Africure was one of the successful bidders and was commissioned to supply pharmaceutical products worth N$123 million.
Cospharm was unsuccessful and submitted an application for reconsideration to the CPBN on 2 May.
In terms of the Procurement Act, the council was obliged to reconsider its decision within seven days and to inform Cospharm of its resulting decision. However, this did not happen and Cospharm submitted another application to the review panel on 24 May.
Two days later, the board ordered its tender evaluation committee to re-evaluate the company's tender.
Reduced award
On 6 June, Cospharm withdrew its application for review from the panel and about two months later, the council issued a new notice on 3 August in which a tender of N$1.3 billion was awarded to Cospharm.
The value of Africure's award was also reduced from N$123 million to N$45 million.
Africure consequently submitted an application to the review panel on 11 August, challenging the decision that arose due to Cospharm's application for reconsideration.
The CPBN sent acceptance letters to all successful tenderers in mid-August, requesting them to provide 10% of the contract value as security within 30 days.
If this did not happen, another company would be chosen.
Background
The CPBN's decision to award a contract worth N$1.3 billion to a company - in which a five-year-old girl holds the majority share - to supply pharmaceutical products to government has left other companies in awe.
The fact that Cospharm was initially eliminated from the race and filed an appeal, only to later win the tender, plunged the tender of more than N$1 billion into controversy. The company was initially disqualified because it apparently changed the tender price on its documentation without initialing next to the change.
Cospharm is owned by Zimbabwean businessman Cosmos Mukaratirwa (49%) and his child, a Namibian citizen, who owns 51%, according to company records.
Mukaratirwa was thrust into the spotlight about three years ago after he was arrested for allegedly selling unregistered medicines worth N$657 800 to the health ministry. He was released on a warning.
– [email protected]
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