Maltahöhe CEO under fire
An investigation by the Anti-Corruption Commission has uncovered many irregularities, including kickbacks, in the town’s plans to construct a fire station.
The Maltahöhe Village Council has resolved to institute disciplinary procedures against its CEO and electrician for violating tender board procedures and personnel regulations.
The CEO Otto Richard and electrician Geronino Tise allegedly irregularly awarded the tender for the construction of the fire station in the village.
They allegedly sold the tender documents without advertising the tender to three contractors, JCM Investments, LN Perfect Builders and ED Power.
The Anti-Corruption Commission (ACC) investigation found that they received N$48 000 in kickbacks.
Former councillor Markus Saal allegedly also benefited, receiving N$10 000 with a further promise of livestock.
It is further alleged that the company, LN Perfect Builders paid Tise N$35 000 to purchase a Volkswagen Golf, which is currently in his possession.
At their monthly meeting held on Wednesday this week, the Maltahöhe Village Council decided to first involve the rural and urban development ministry, and to obtain legal advice before any action.
The charges allegedly warrant discharge with immediate effect.
In its preliminary findings, the ACC recommended that disciplinary procedures against the CEO and electrician be instituted with immediate effect.
They had investigated alleged corrupt practices in relation to the non-procedural awarding of work and payment of N$160 000 to the company Arcon for the construction of a fire station at the village. The scope of the work included the drawing of plans, compiling of tender documents and the supervising of the project.
The council resolution was taken in the wake of the ACC conclusion that Richard and Tise, both public officials, conspired to commit an offence and misused their positions to obtain gratification for Arcon and for themselves.
They further allegedly obtain gratification for a company, ED Power, as well as for themselves knowingly and corruptly while they were aware that there was no tender board resolution to appoint ED Power and thus, they contravened the Anti-Corruption Act.
Among the charges are that ED Power solicited and paid a bribe to Tise and Richard as well as Saal in order to obtain the tender to construct the fire station.
It was established that during the 2013/14 financial year, the Ministry of Urban and Rural Development released N$2 million for the construction of a fire station in Maltahöhe.
It, however, turned out that the fire station was not constructed and in August 2015 a ministerial team was sent to Maltahöhe to find out why.
The ACC report concluded that N$160 000 was paid but the designs were incorrect and not up to standard.
As such, another consultant was approached to rectify the designs.
It stated the tender board procedures were violated when ED Power was appointed because procedures were not followed and that there was no council resolution.
Both Richard and Tise attended the meeting with the minister’s team.
Richard informed the meeting that he was to table the matter on the next council agenda.
Tise obtained two quotations, one of Silver Starkz dated 4 August 2015 in the amount of N$177 804 and that of Arcon dated 6 August 2015 in the amount of N$160 000.
According to the ACC report it was clear that the quotation for Silver Starkz was used to establish a price and the price was made cheaper. It further said Richard was supposed to have tabled the entire project at a Tender Board meeting because the amount involved was higher than N$10 000.
“The Tender Board Act and local Tender Board regulations were violated,” concluded the ACC report and added that it was also supposed to be advertised in the local newspapers.
The ACC report stated that the payment was made on 11 August 2015.
“It is strange that the work to the amount of N$160 000 was completed within such short period,” it said.
The report added that 6 August 2015 was a Thursday when the quotation was obtained.
Further, on 10 August 2015 the work was completed and invoiced on Tuesday, 11 August 2015.
Arcon also compiled the tender document.
It was further stated Richard admitted in a sworn statement that after a week, around 14 or 19 August 2015, a certain Waldo, the owner JCM Investments, came to his office and handed him an envelope and said, “we talk later”.
He said he received N$10 000 and was told that it was a gift because of the assistance he and Tise had offered Arcon. Tise allegedly also received the same amount.
Tise is alleged to have phoned three contractors, JCM Investments, LN Perfect Builders and ED Power and sold to them the tender documents without advertising the tender.
The Tender Board meeting of 28 August 2015 resolved the tender should be advertised.
However, another council meeting of 9 September 2015 totally contradicted the Tender Board resolutions.
On that same date the tender was advertised with a starting date to purchase tender documents on 9 September 2015 and closing date on 1 October 2015.
“This was the same date council resolved both the electricity and the fire brigade tenders be exempted. At that stage the tender documents were already sold and JCM Investments already had the tender document in his possession,” the ACC report concludes.
FRED GOEIEMAN
The CEO Otto Richard and electrician Geronino Tise allegedly irregularly awarded the tender for the construction of the fire station in the village.
They allegedly sold the tender documents without advertising the tender to three contractors, JCM Investments, LN Perfect Builders and ED Power.
The Anti-Corruption Commission (ACC) investigation found that they received N$48 000 in kickbacks.
Former councillor Markus Saal allegedly also benefited, receiving N$10 000 with a further promise of livestock.
It is further alleged that the company, LN Perfect Builders paid Tise N$35 000 to purchase a Volkswagen Golf, which is currently in his possession.
At their monthly meeting held on Wednesday this week, the Maltahöhe Village Council decided to first involve the rural and urban development ministry, and to obtain legal advice before any action.
The charges allegedly warrant discharge with immediate effect.
In its preliminary findings, the ACC recommended that disciplinary procedures against the CEO and electrician be instituted with immediate effect.
They had investigated alleged corrupt practices in relation to the non-procedural awarding of work and payment of N$160 000 to the company Arcon for the construction of a fire station at the village. The scope of the work included the drawing of plans, compiling of tender documents and the supervising of the project.
The council resolution was taken in the wake of the ACC conclusion that Richard and Tise, both public officials, conspired to commit an offence and misused their positions to obtain gratification for Arcon and for themselves.
They further allegedly obtain gratification for a company, ED Power, as well as for themselves knowingly and corruptly while they were aware that there was no tender board resolution to appoint ED Power and thus, they contravened the Anti-Corruption Act.
Among the charges are that ED Power solicited and paid a bribe to Tise and Richard as well as Saal in order to obtain the tender to construct the fire station.
It was established that during the 2013/14 financial year, the Ministry of Urban and Rural Development released N$2 million for the construction of a fire station in Maltahöhe.
It, however, turned out that the fire station was not constructed and in August 2015 a ministerial team was sent to Maltahöhe to find out why.
The ACC report concluded that N$160 000 was paid but the designs were incorrect and not up to standard.
As such, another consultant was approached to rectify the designs.
It stated the tender board procedures were violated when ED Power was appointed because procedures were not followed and that there was no council resolution.
Both Richard and Tise attended the meeting with the minister’s team.
Richard informed the meeting that he was to table the matter on the next council agenda.
Tise obtained two quotations, one of Silver Starkz dated 4 August 2015 in the amount of N$177 804 and that of Arcon dated 6 August 2015 in the amount of N$160 000.
According to the ACC report it was clear that the quotation for Silver Starkz was used to establish a price and the price was made cheaper. It further said Richard was supposed to have tabled the entire project at a Tender Board meeting because the amount involved was higher than N$10 000.
“The Tender Board Act and local Tender Board regulations were violated,” concluded the ACC report and added that it was also supposed to be advertised in the local newspapers.
The ACC report stated that the payment was made on 11 August 2015.
“It is strange that the work to the amount of N$160 000 was completed within such short period,” it said.
The report added that 6 August 2015 was a Thursday when the quotation was obtained.
Further, on 10 August 2015 the work was completed and invoiced on Tuesday, 11 August 2015.
Arcon also compiled the tender document.
It was further stated Richard admitted in a sworn statement that after a week, around 14 or 19 August 2015, a certain Waldo, the owner JCM Investments, came to his office and handed him an envelope and said, “we talk later”.
He said he received N$10 000 and was told that it was a gift because of the assistance he and Tise had offered Arcon. Tise allegedly also received the same amount.
Tise is alleged to have phoned three contractors, JCM Investments, LN Perfect Builders and ED Power and sold to them the tender documents without advertising the tender.
The Tender Board meeting of 28 August 2015 resolved the tender should be advertised.
However, another council meeting of 9 September 2015 totally contradicted the Tender Board resolutions.
On that same date the tender was advertised with a starting date to purchase tender documents on 9 September 2015 and closing date on 1 October 2015.
“This was the same date council resolved both the electricity and the fire brigade tenders be exempted. At that stage the tender documents were already sold and JCM Investments already had the tender document in his possession,” the ACC report concludes.
FRED GOEIEMAN
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