Private firms emerge behind NTA’s N$900m food deal

The Namibia Training Authority (NTA) has engaged private service providers to help distribute food to government school hostels, prompting questions about how the end contractors were chosen.

The education ministry selected NTA from among five other public entities for the tender on 29 June.

Instead of an open public tender, the appointment was made through a procurement method known as "execution by public entity".

The food tender was initially reported to be worth N$500 million, but the finance ministry told Namibian Sun the correct figure was N$867.4 million.

Under the deal, NTA would supply food to 239 government school hostels accommodating 77 281 learners nationwide.

Namibian Sun has, meanwhile, established that NTA has appointed private operators to provide logistics, transportation, warehousing and other services required to move food supplies to government schools.

NTA CEO Erick Nenghwanya confirmed that they were sourcing food commodities and additional capacity from service providers as and when required.

He said the sourcing is not restricted to any fixed or particular list of service providers, adding that NTA is allowed to outsource services under its agreement with the education ministry.

Nenghwanya said NTA engages capable entities or suppliers strictly on merit, and only when additional capacity or specific food commodities are needed to sustain uninterrupted deliveries to schools.

Private operators

Although NTA refused to disclose the names of suppliers, contractors or private firms hired to assist, one of those working with NTA, SPYL member Abel Amutse, confirmed that his company is among private operators assisting in the Oshana region.

“We are just managing some things on their behalf, like the usage of our trucks for logistics purposes and then they pay us for that,” Amutse said.

Amutse said his company transports vegetables from the AMTA depots to government schools and also rents warehouses.

Berno Haupindi, NTA's contact person for the Oshana region, said he is dealing with several suppliers.

"We have nine schools we are catering for. Part of the suppliers assisting are Namib Mills for dry food, chicken and other items, Amta and many SME companies," Haupindi said.

Other focal persons who have confirmed dealing with suppliers are Yolandi Farao in the Hardap region, Petrus Haindongo in Kavango East and Leevi Ipumbu in Oshikoto.

Some businesspeople whose names have been mentioned in connection with the food contracts have denied involvement.

More avenues

The ministry of finance’s procurement policy unit executive director, Phineas Nsundano, told Namibian Sun that the education ministry did not seek approval to award the contract directly to NTA but instead requested exemptions under the Public Procurement Act to facilitate the procurement.

“The ministry of finance granted an exemption to [the ministry] from Section 8A to procure above the threshold without going to CPBN or without referring the particular procurement to the Central Procurement Board,” Nsundano said.

The request also involved permission to use "execution by public entity" as the procurement method.

Nsundano said open advertised bidding remains the default procurement method under Section 27 of the Act, although alternative methods can be used where statutory requirements are met.

“The provision of Section 27 provides for more than one type of procurement, open advertisement being the default method.

"However, if the provisions of Section 27(4) and (5) are met, then there is compliance,” he said.

Last week, the education ministry defended its decision to appoint NTA, saying years of litigation over hostel food tenders had put learners' food security at risk.

The ministry’s executive director, Erastus Haitengela, said six public entities were considered before NTA emerged as the preferred bidder.

“The reason for considering NTA was necessitated by the need to explore more avenues to enable a more financially sustainable procurement arrangement with limited litigation risks.

“The need emanates from the history of prolonged and frequent litigation persisting to date. The recurring court cases have placed a significant burden on the ministry, compromising food security for our hostel dwellers,” Haitengela said.

Growing concern

Last month, Namibia Local Business Association vice president Peter Kanu Amadhila criticised a perceived rise in government work being awarded to public entities.

“Directly allocating work to an entity, except in cases where an emergency has been declared, constitutes corruption, and that is exactly what is happening. Overpricing of projects is taking place to create brown envelopes,” he told Namibian Sun.

He warned that the continued direct allocation of projects to state-owned enterprises would worsen poverty and lead to further retrenchment in the local business sector.

“If this trend continues, poverty will increase and retrenchments among local enterprises will continue," he warned.

"To level the playing field, all government projects should go through competitive bidding processes. If state-owned enterprises wish to bid, they should be free to do so."

The Central Procurement Board of Namibia (CPBN), represented by Johanna Kambala, confirmed that it was not involved in the procurement process in this instance.

NTA was established under the Vocational Education and Training Act 1 of 2008, with its legal functions primarily centred on vocational education and training.

The Act does not identify nationwide commercial food procurement and distribution to government schools.