Outstanding N$20 million halts work

14 November 2016 | Labour

Construction on the first phase of the Windhoek to Hosea Kutako International Airport road was suspended on Friday due to non-payment of N$20 million.

The CEO of the Roads Authority (RA), Conrad Lutombi, confirmed that the parastatal received a notification of the suspension of work by the China Railway Seventh Group and Onamagongwa Trading Enterprises joint venture.
Lutombi said in accordance with the contract the joint venture has a right to suspend work on the project because of an outstanding invoice.
He said the RA and the joint venture will have a meeting this week, adding: “We will be able to resolve the matter.”
The joint venture had given a 21-day notice of its intention to suspend work on the road project in a letter written by the project manager of the Chinese company, Xianjin Wang, on 20 October when he informed the employer of a “possible delay” in the construction of the project.
Wang said payment was due on 21 September and again on 16 October, saying the late payments were having an effect on the contractual production output and planning.
“It is imperative that a positive cash flow is maintained on the project to allow the contractor to maintain a planned level of production and resource procurement for the successful completion of the project,” Wang wrote.
He said the delay in production is due to late delivery of materials caused by late supplier payments, as well as losing trust with suppliers related to settlement agreements that have not been honoured.
Wang wrote that plant and equipment imported were also impounded by customs at the Walvis Bay harbour due to import duties and taxes that the joint venture was not able to pay as a result of “morbid cash flow”.
A managing member of the Onamagongwa Trading Enterprises, Martyn Ipinge, on 8 November wrote to a supplier of the impending suspension that would start on 11 November, and added that the RA had failed to honour its monthly contractual obligations.
“It is unknown as to the duration thereof and to whether the joint venture shall cease all works or continue with minor works; this will be formalised in the next few days,” Ipinge wrote.
Ipinge would not comment on the matter when contacted.
Lutombi did not expound on the reasons why the RA had failed to honour its contractual obligations.
According to the payment schedule the RA has paid over more than N$106 million to the joint venture. The outstanding payment is close to N$20 million.
China Railway Seventh Group, which holds 80% shareholding in the joint venture and which states its vision as enhancing “the quality of life of all our people”, had recently in an advert stated that it has commenced work on a bridge and road at Frankie Frederick Street in Prosperita.
It stated construction on this part of the project would start on 21 September until 30 February next year.
CATHERINE SASMAN

Similar News

 

Ya hala okushunwa miilonga

2 days ago - 27 March 2017 | Labour

Aaniilonga mboka oya tidhwa miilonga sha landula ekanka ndyoka ya li ya ningi kali li paveta na oya ningi omunyanyo sigo opoombelewa dhUuministeli wAaniilonga ...

Determined fishermen fight on

5 days ago - 24 March 2017 | Labour

OTIS FINCK More than 300 fishermen staged another peaceful protest in Walvis Bay yesterday.The fishermen, who had been dismissed after an illegal strike, marched to...

Aahingi yootaxi oya hala egameno lyopaveta

5 days ago - 24 March 2017 | Labour

Aahingi yootaxi moVenduka oya ningi ehololomadhilaadhilo esiku Etiyali poombelewa dhUuministeli wAaniilonga moonkambadhala opo omakemo gawo ga talike.Ehangano lyoNamibia Transport and Taxi Union (NTTU) olya...

Ekanitho lyiilonga momina yaSkorpion Zinc

5 days ago - 24 March 2017 | Labour

Uuyelel mboka owa hololwa momuknda ngoka gwa pitithwa komupopiliko gwomina ndjoka, Nora Ndopu.“Ekateko lyetamekitho lyiilonga otali yi moshipala opoloyeka ndjoka na otashi ka thiminika omina...

Tucna bemoans dodgy investments

6 days ago - 23 March 2017 | Labour

Memories of the lost N$100 million of the Offshore Development Company and the N$30 million SSC/Avid investment scandal were relived yesterday by a trade union...

Security guard minimum wage in chaos

2 weeks ago - 15 March 2017 | Labour

The Ministry of Labour has placed the blame for a delay in the gazetting of the new security guard minimum wage at the door of...

Sign Shop cuts staff pay

3 weeks ago - 06 March 2017 | Labour

Some employees of the Sign Shop Group are unhappy with management's decision to reduce their working hours, and thus their monthly salaries, by about 50%.Representing...

Lockout at Namibia Press and Tools

3 weeks ago - 03 March 2017 | Labour

The management of Namibia Press and Tools (NPT) at Walvis Bay on Monday implemented a lockout after an unresolved wage dispute.NPT manufactures spare parts for...

Security guard wage chaos

1 month - 27 February 2017 | Labour

The majority of security guard firms in Namibia have yet to adjust salaries to the new minimum wage that was set at the beginning of...

Oostola dhoka tadhi hepeke aaniilonga nadhi shune

1 month - 27 February 2017 | Labour

KENYA KAMBOWEEhangano lyoNamibia Wholesale and Retail Workers Union (NWRWU) olya pula Uuministeli wAaniilonga opo omahangano goostola, unene ngoka ga za pondje yoshilongo ihe otaga hepeke...

Latest News

Poachers hit Indongo's farm again

13 hours ago | Crime

The number of rhinos killed by poachers this year has risen to five after two more carcasses were found on the farm Okanenampanti belonging to...

Rhino horns disguised as coffee

13 hours ago | Crime

A poaching syndicate operating in Namibia is apparently posting rhino horns to China in parcels purportedly containing coffee. Twelve pieces of rhino horn mailed from...

Job wants SSC contributions back

13 hours ago | Politics

Affirmative Repositioning (AR) activist Job Amupanda says he wants his monthly contributions to the Social Security Commission (SSC) back “until further notice”.In a letter to...

Struggle icons remember Kathrada

13 hours ago | People

Namibian struggle icon Andimba Toivo ya Toivo says the legacy of ANC veteran Ahmed Kathrada will live on for many years. Kathrada died in...

Airport tender in limbo

13 hours ago | Justice

A tender for the upgrading and expansion of Hosea Kutako International Airport is in limbo after the Supreme Court ruled that it had been granted...

Another Chinese nabbed in N$3.5bn...

13 hours ago | Crime

Another Chinese man was arrested by members of the Namibian Police's serious crime investigations unit in connection with alleged tax evasion, fraud and money laundering...

Double Valentine murder trial resumes

13 hours ago | Crime

The trial of double murder accused Mathias Kalunga Shindinge (45) who is charged with shooting his wife and her suspected lover to death in the...

Wildlife task force training starts

13 hours ago | Environment

Environment and tourism minister, Pohamba Shifeta said wildlife trafficking has become a multi-million dollar criminal enterprise whose threat has expanded to become more than just...

Who is to blame?

13 hours ago | Columns

Chilling figures of unsafe abortions announced by the health minister Dr Bernard Haufiku are a cause for grave concern and brings to the fore the...

Load More