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

 

Shoprite discontent grows

2 days ago - 24 May 2017 | Labour

The Trade Union Congress of Namibia has added its voice to the list of organisations expressing their discontent with a decision by retailer Shoprite to...

Rukoro fights suspension

3 days ago - 23 May 2017 | Labour

A dispute has been declared at the Office of the Labour Commissioner over the suspension of Vekuii Rukoro as the CEO of Meatco.This was confirmed...

Shoprite a pulwa a kuthemo iipotha mbyoka a...

4 days ago - 22 May 2017 | Labour

Ehangano lyoEconomic and Social Justice Trust (ESJT) olya pula opo Shoprite a kuthemo iipotha mbyoka a tulilemo aaniilonga, tali popi kutya itali pitika we aaniilonga...

Shoprite told to drop charges

1 week ago - 19 May 2017 | Labour

The Economic and Social Justice Trust (ESJT) has called on retail giant Shoprite to drop disciplinary charges against its workers, saying they cannot allow the...

Nabta launches control sheet

1 week ago - 16 May 2017 | Labour

The Namibia Bus and Taxi Association (Nabta) recently launched a control sheet which it will use to monitor passenger movement between travel destinations.The control sheet...

Geingob says no to get-rich-quick schemes

3 weeks ago - 02 May 2017 | Labour

President Hage Geingob says he does not support business people who become rich instantly by means of exploiting the working class.Geingob made the remark yesterday...

Walvis Bay vessel ghosted by owners

1 month - 21 April 2017 | Labour

JANA-MARI SMITHAt least 22 crew aboard the fishing vessel Sheriff, anchored off Walvis Bay, have reportedly been without pay since mid-February after the Namibian company...

Unemployment soars amid budget cuts

1 month - 18 April 2017 | Labour

Namibia will this year commemorate Workers' Day in the shadow of skyrocketing unemployment brought about by almost weekly retrenchments which have affected close to 41...

Fishermen, miners demand justice

1 month - 12 April 2017 | Labour

JANA-MARI SMITH A petition signed by more than a thousand beleaguered fishermen and former Tsumeb miners was handed over to...

Protracted Skorpion negotiations concluded

1 month - 03 April 2017 | Labour

The protracted labour negotiations between Skorpion Zinc and the Mineworkers Union of Namibia (MUN) were successfully concluded on Friday.The parties agreed on a two-year wage...

Latest News

Ex-governor dies after vicious attack

8 hours ago | Crime

STAFF REPORTERThe former governor of Omusati Region, Leonard Nangolo Mukwiilongo, has succumbed to injuries after he was brutally attacked at his Elim residence in April...

Wage bill threatens fiscal stability

8 hours ago | Government

JANA-MARI SMITHGovernment’s politically motivated refusal to thin out its costly civil service, and an 84% civil service wage bill hike over three years, could potentially...

Shifeta plans to ban hunting...

8 hours ago | Environment

Namibia has already started feeling the backlash from photos posted on social media of farmers gloating over dead lions that they killed illegally.Environment minister Pohamba...

Competitive rates at motor show

8 hours ago | Business

If you're in looking for a new set of wheels, this year's Namibia Tourism Expo will be the perfect place to start, with competitive offers...

Time to speak up about...

8 hours ago | Justice

Namibians of all backgrounds are being urged to share their stories of discrimination and intolerance during a number of public and community hearings over the...

More skulls to return

8 hours ago | History

The Namibian embassy in Berlin has informed the Ministry of International Relations and Cooperation that 16 human remains of Namibian origin were identified and are...

Kalkfeld’s future on the line

8 hours ago | Life Style

With more than 90% unemployment at the Kalkfeld settlement in the Otjozondjupa Region, many inhabitants say the future looks bleak and they fear not only...

Swapo and the flawed primaries

8 hours ago | Opinion

As Swapo prepares for what is expected to be a watershed congress towards the end of the year, the ruling party is under pressure to...

I am a carnivore and...

8 hours ago | Opinion

I never understand the fuss that goes around losing weight. All of a sudden everyone – including that girl from down the street who in...

Load More