Boy (5) prevails in N$1.3bn tender standoff

The Central Procurement Board of Namibia’s (CPBN) review panel is sticking to its guns and has cemented its decision to award a billion-dollar medical supply tender to Cospharm Investments, whose majority owner is a five-year-old child.As matters stand, the award – which was concluded last Friday – invalidates a High Court judgment handed out on Tuesday in which CPBN was ordered to halt the award process pending a review process.An urgent application to stop the award process was brought by businessman Shapwa Kanyama, through his company Africure Pharmaceuticals.In August, Africure submitted an application to the review panel, challenging the decision to award the N$1.3 billion tender to Cospharm – which, in turn, arose from a Cospharm application for reconsideration.This is because Cospharm was initially disqualified from the process because it apparently changed the tender price on its documentation without initialling next to the change, but the company successfully appealed to be brought back into contention. Africure and and Erongomed Health Distributors dragged the CPBN to the review panel, claiming irregularities in the manner Cospharm got the tender. They demanded that CPBN’s initial disqualification of Cospharm be upheld.Cospharm is owned by Zimbabwean businessman Cosmas Mukaratirwa (49%) and his five-year-old child, a Namibian citizen, who owns 51%, according to company records.TimingYesterday, CPBN acting chairperson Amon Ngavetene said the review panel’s decision to confirm Cospharm as the winner of the tender was made before this week’s court ruling.“When the court heard this matter, the review panel had already scheduled to have its meeting on 4 September and it took place on that day. Then, on Friday last week, they [review panel] announced their decision. So, by the time the court gave its order, the review panel already issued its own verdict in the matter - which vindicates the original award,” he told Namibian Sun.The review panel dealing with the matter consists of Tulimeyo Kaapanda (chairperson), Browny Mutrifa, Hellen Amupolo and Gilbert Habimana.About a fortnight ago, the finance ministry asked the attorney-general whether it was legal for CPBN to award the N$1.3 billion tender to a company majority-owned by a minor.This was confirmed by deputy finance minister Maureen Hinda-Mbuende, who said at the time: “We came across the matter through the media, because due to the internal processes, we were not privy to the matter. But I can confirm that our ministry has engaged the attorney-general on the legitimacy of ownership of the minor”.“This arrangement raises moral and ethical questions,” she said.Healthcare crisisLast week, the health ministry said the cancellations of tenders and court battles delaying the procurement of pharmaceutical products has plunged the Namibian healthcare system into a life-threatening crisis, where critical medications such as adrenaline, antibiotics and morphine are in dire need.Adrenaline is used for patients suffering from cardiac arrest as well as those with serious breathing problems, while cancer patients are mostly administered morphine.Executive director Ben Nangombe said the situation is so grim that the ministry was in the process of approaching treasury for an exemption to buy the drugs so urgently needed.“The situation is dire and it will eventually cost us more on a long-term basis. We desperately need a long-term supplier that would enable us to do forecasts and call in when we need supplies. “When we buy once-off on a short-term basis, the prices are higher because people now know you are operating in emergency mode,” Nangombe said.He added that they have now been forced to manage the ministry on a ‘cuca-shop’ basis because of the delays.“These delays are affecting us significantly as we now have to acquire critical supplies through buy-outs, which means we have to go out and buy smaller quantities from local suppliers and our threshold is only N$25 million. Now, if we need supplies worth more than N$100 million, imagine the shortfall.” jemima@namibiansun.com

Boy (5) prevails in N$1.3bn tender standoff

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Namibian Sun 2025-06-19

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Boy (5) prevails in N$1.3bn tender standoff

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Namibian Sun 2025-06-19

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