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

 

Rosh Pinah Zinc workers want specialist fired

2 days ago - 24 February 2017 | Labour

Workers at the Rosh Pinah Zinc Mine have given management four working days to remove its employee relations specialist, Angeline Barnard-Hagen, or face “unforeseen action”.In...

Union wants non-compliant retailers to go

2 days ago - 24 February 2017 | Labour

The Namibia Wholesale and Retail Workers Union (NWRWU) has demanded that the minister of labour call retailers that exploit workers to order. The union claims...

‘The public is left out’

4 days ago - 22 February 2017 | Labour

JANA-MARI SMITH The Trade Union Congress of Namibia (Tucna) yesterday slammed the way in which public consultations are handled by...

Police remove protesters from Walvis Bay harbour

6 days ago - 20 February 2017 | Labour

About 40 casual workers of the Namibian Ports Authority (Namport) were removed by the police last week after they had been camping illegally in front...

MUN accuses Rosh Pinah of victimisation

1 week ago - 17 February 2017 | Labour

The Mineworkers Union of Namibia (MUN) has accused the Rosh Pinah Zinc Mine of appointing an employer relations (ER) specialist to get rid of workers...

Farmworker claims ill-treatment

1 week ago - 16 February 2017 | Labour

A woman who worked close to 30 years on a farm claims she was given 24-hours' notice by her employer to vacate the land after...

NTTU blames govt for incompetence

1 week ago - 15 February 2017 | Labour

The Namibia Transport and Taxi Union (NTTU) has blamed the stagnation of the public transport regulations on incompetence or the wilful inaction by some government...

'Geingob must get rid of A-Team'

2 weeks ago - 06 February 2017 | Labour

President Hage Geingob has been urged to do away with his advisory team by trade unionist Mahongora Kavihuha, who made the call in a statement...

NUNW calls for local ownership, local jobs

2 weeks ago - 06 February 2017 | Labour

The National Union of Namibian Workers (NUNW) has reiterated a call on the government to insist on 50% shareholding in all local mines on behalf...

Skorpion Zinc workers redeployed

3 weeks ago - 31 January 2017 | Labour

Skorpion Zinc Mine and Refinery has confirmed that it has notified 278 of its 1 500 employees that they will be redeployed after the company...

Latest News

Robber assaults sleeping baby

2 days ago - 24 February 2017 | Crime

JESSICA BOTES A Swakopmund mother of twin babies is the latest victim of a string of violent burglaries in Swakopmund.At approximately 03:50 on Wednesday, a...

Rosh Pinah Zinc workers want...

2 days ago - 24 February 2017 | Labour

Workers at the Rosh Pinah Zinc Mine have given management four working days to remove its employee relations specialist, Angeline Barnard-Hagen, or face “unforeseen action”.In...

Land activists say they won't...

2 days ago - 24 February 2017 | Politics

The Landless People's Movement has indicated its intention to approach the ombudsman to compel the land reform ministry to release its version of the resettlement...

Union wants non-compliant retailers to...

2 days ago - 24 February 2017 | Labour

The Namibia Wholesale and Retail Workers Union (NWRWU) has demanded that the minister of labour call retailers that exploit workers to order. The union claims...

Hoff guilty of attempted murder...

2 days ago - 24 February 2017 | Crime

Susanne Hoff (56) was found guilty of the attempted murder of her estranged husband, Egbert Hoff, by the Windhoek Regional Court yesterday.Hoff, who pleaded not...

Ondonga backs Nangolo to succeed...

2 days ago - 24 February 2017 | Cultural

The Ondonga Traditional Authority on Tuesday affirmed that Fillemon Shuumbwa Nangolo is the Ondonga king-in-waiting.The OTA said in a statement that King Immanuel Kauluma Elifas...

Dineo storms onto bucket list

2 days ago - 24 February 2017 | Disasters

When you plan a sunny Mozambican holiday in February, the last thing you expect is to be caught up in a cyclone. (Well, maybe we...

The 2017 Budget should demonstrate...

2 days ago - 24 February 2017 | Opinion

BY MALLY LIKUKELA As preparations for the 2017 National Budget gather momentum and a greater participation by various stakeholders becomes evident. The budget is...

I am a foolishly wise...

2 days ago - 24 February 2017 | Opinion

I have always been fascinated by the manner in which the Police in United States of America, in cities like New York, Los Angeles or...

Load More