Bid to interdict NDF food contract fails

Six catering companies failed in their bid to prevent Defence Minister Nahas Angula from executing a contract he entered into with August 26 Holding Company for the temporary supply of food rations to the Namibian Defence Force (NDF). The urgent court application was dismissed with costs. Judge Maphios Cheda said yesterday that there was urgency in the matter, as the caterers were entitled to know what the position was with regard to the tender. He revealed that the Tender Board has not awarded the controversial N$5 billion food tender as yet. August 26 Holding Company had been contracted by the minister in the absence of a tender award. The tender was advertised in July last year for the supply and delivery of rations from November 1, 2012 to October 31, 2017 and several caterers submitted their applications. Cheda said the minister had the right to enter into a contract with any party to supply food rations to his ministry in furtherance of its smooth running, pending the adjudication of tenders. The Independence Caterers (Pty) Ltd, after gathering information that Angula had already contracted the August 26 Holding (Pty) to supply food rations through August Twenty Six Logistics, challenged the decision with an urgent application. They were joined by Nutrifood, Haritage Caterers, Welwitschia Rural Caterers, Tsepo Catering and Tulipamwe Catering Services in the court challenge. Angula, the minister of finance, the chairman of the Tender Board, August 26 Holding Company and August Twenty Six Logistics defended the application. Independence Caterers had initially been contracted to supply food rations up to September 30. This was after their mandate had been extended from June 30, because no tender award had been made by the Tender Board After September 30, Independent Caterers were informed that Angula had already contracted the August 26 Holding (Pty) to supply food rations to the Ministry of Defence through August Twenty Six Logistics. They chose to challenge this in court. Their argument was that they had a legitimate expectation to be awarded the tender by the Tender Board. They sought an interdict to prevent Angula from proceeding to contract the August 26 Holding Company. They further contended that the agreement is in conflict with various regulative provisions which are currently in operation and is in breach of an agreement between the caterers who submitted bids, the Tender Board and the Ministry of Defence. “The decision arrived at is reviewable for failing to comply with legislative directives in administrative law,” they argued. “The fact that the decision to award the tender has not been arrived at yet, makes this application… for the envisaged order premature,” Cheda said yesterday. He further said none of the caterers attacked the decision by the minister to unilaterally extend Independence Caterers contract up to September 31, which was done without the award of the tender. “What is the issue if he uses the same powers… in contracting other suppliers pending the determination of tenders by the Tender Board?” Cheda asked.