Construction company sues government for N$71m

Jesmike Youth Project CC, a northern-based construction company, has dragged government to court, demanding back more than N$71 million for work allegedly carried out on the rehabilitation of quarantine facilities in the northern communal areas.The company, represented by Naftal Angolo, alleges that it entered into a partly written and partly oral agreement with the agriculture ministry in January 2020 to rehabilitate and repair state quarantine facilities at Omutabo Maowe, Okongo, Oshivelo, Mangetti and Katima Mulilo.According to the company’s particulars of claim, filed in the High Court, the agreement required it to repair fences and guard houses, install water pipelines and taps, and clear bush corridors at the facilities. The project was reportedly approved by the ministry’s veterinary services division, which was to provide materials and oversee implementation.Jesmike Youth Project says it duly performed its duties under the supervision of state veterinarians and received only a partial payment of N$8.7 million. The company alleges that government failed to provide materials and defaulted on the balance of N$71.4 million, which it says is still owed for completed work and related expenses.‘Voluntary youth initiative’In its plea filed in June this year, the agriculture ministry, represented by the Office of the Government Attorney, denied that a binding contract existed, describing the engagement as a philanthropic and voluntary initiative led by unemployed youth.The ministry's legal representatives claim that Jesmike Youth Project initially presented itself in 2019 as a non-profit organisation seeking to assist the state on a voluntary basis, offering to maintain quarantine facilities “at no cost” while earning income from de-bushing materials and other by-products.According to court papers, the ministry argued that it later issued a Letter of Agreement in January 2020, which merely outlined rules and supervision procedures for the youth group’s presence on government premises, and not a formal service contract.'Unfounded' The ministry further stated that limited Treasury approvals were granted twice, in 2019 and 2021, totalling approximately N$3.9 million, as “tokens of appreciation” for the group’s contributions, and not as commercial payments.Government maintains that the plaintiff’s claim is unfounded and unlawful, arguing that no procurement process was followed as required by the Public Procurement Act of 2015 and that any agreement outside that framework is null and void.“The plaintiff’s claim is opportunistic in nature and seeks to exploit the defendant’s procedural vulnerabilities," the ministry stated in court documents.It has since requested the court to dismiss Jesmike Youth Project’s lawsuit with costs.rita@nmh-hub.com.na

Construction company sues government for N$71m

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Namibian Sun 2025-12-11

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Construction company sues government for N$71m

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Namibian Sun 2025-12-11

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