D&M Rail fights back

D&M Rail Construction has denied that the tender for the rehabilitation of the TransNamib railway between Kranzberg and Tsumeb is an open-ended arrangement and that it was awarded irregularly.The company further categorically denied suggestions in reports that it had delivered slow and shoddy work.“You cannot say the contract is endless because it pertains only to the rail between Kranzberg and Tsumeb. If the work is finished, the contract is finished,” remonstrated D&M Rail contract management partner Jack Dempsey. D&M Rail’s managing director, Dawie Möller, taking issue with claims that the company’s work is not up to scratch, argued that at the 34 monthly site meetings with the works ministry, TransNamib and Windhoek Consulting Engineers (WCE) no complaint to that effect was ever made. Möller specifically pointed out that the ministry’s director of railway affairs, the Zimbabwean Justus Ncube, said at an information session in mid-July that he was satisfied with D&M Rail’s work and the processes it was following. It remains unclear which rail expert in the ministry made allegations of poor work. Möller, however, acknowledged that the work on the project had slowed down due to a shortage of funds.Dempsey and Möller assert that they are unfairly being attacked in the media, where a relationship between Attorney-General Sacky Shanghala and majority shareholder of D&M Rail Construction, James Hatuikulipi, “is being created”. BackgroundNamibia Rail Construction (NRC) is a joint venture between TransNamib and D&M Rail Construction. Until now NRC has done work for private rail siding owners and none for the government. According to the Tender Board two companies, Namibia Rail Construction and Eagle Customs Clearance CC of Ambrosius Shetunyenge, had met the requirements for the upgrading of the Kranzberg-Tsumeb railway and procurement of ballast phase two project. NRC had tendered for close to N$36.2 million to complete the work in 150 days as alternative tender, as well as close to N$36 million for completion in 608 days in conformance to the tender requirements.Eagle Customs Clearing had tendered for N$89.8 million to complete the work in 608 days. With a difference of more than N$53 million in the bids WCE, TransNamib’s consulting engineers, recommended that NRC get the tender. The Tender Board threw out Eagle Custom Clearing’s tender application because it did not tender in line with its principal business. The company is not actively operating in the rail sector. Court challengeEagle Custom Clearing nonetheless challenged the decision in court, charging that the tender allocation was irregular. Its biggest bone of contention was that NRC did not comply with the ministry’s non-obligatory 15% “envelope rule”.This envelope rule prescribes that all bids must fall within 15% - above or below – the estimated price of a project. Eagle Custom Clearing was within 5% of the estimated price while NRC quoted far below the estimated price because it did not add transport costs to a rail siding in its bid since it has a quarry on a private siding along the Kranzberg-Tsumeb railway line.Despite a tender rule that stipulates that items for which rates or prices not entered by a tenderer will be assumed to be included in the overall tender price, NRC was attacked for not entering a price for transport. “In a case like this it would not be appropriate to apply the envelope rule as the transport element to a rail siding has a significant impact on the tender price,” Dempsey said. High Court Judge Shafimana Ueitele in March set aside the decision to award the tender to NRC and referred the matter back to the Tender Board. The matter is now oscillating between the Tender Board and the works ministry, which seems determined that the tender must go to Eagle Custom Clearing. Though the ministry’s public relations department has not yet responded to questions sent, Permanent Secretary Willem Goeiemann last Friday would only comment that the ministry sticks to its recommendation. “The question remains why the best value for money offered by a leading entity in the rail sector is not supported by the ministry,” Dempsey commented. CATHERINE SASMAN

D&M Rail fights back

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Namibian Sun 2026-05-27

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D&M Rail fights back

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Namibian Sun 2026-05-27

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