Removal of bid security for tenders welcomed
The Namibia Chamber of Commerce and Industry (NCCI) northern branch has welcomed the recently announced exemption of bid securities – or bank guarantees – when applying for public tenders.
“This is indeed good news. The government is for the people and is listening to our calls,” NCCI northern branch chairperson Tomas Iindji said yesterday.
Finance minister Calle Schlettwein made the announcement to all regional councils this week.
The exemption is pending the finalisation of the National Preferential Policy.
Schlettwein's notice pointed out that in the absence of a preferential policy the bid security requirement “has proven to be a limiting measure with regards to participation by small and upcoming entities”.
The notice stated that the procurement policy unit was fast-tracking the development and subsequent adoption of the codes of good practice on preferences.
At a national budget review function attended by Schlettwein at Ongwediva this week, Iindji said the bid security requirement was a creation of equity speculators wishing to exploit and disadvantage already struggling SMEs, while making money through third-party participation in case the prospective bidder did not have money in the bank.
The NCCI's northern branch had called on the ministry to remove the bid security requirement, arguing that it was not in the interest of local business people.
Iindji said its inclusion as a tender requirement would subject the previously disadvantaged to “perpetual structural poverty and suffering”.
The NCCI northern branch also welcomed the proposed New Equitable Economic Empowerment Framework (NEEEF) as an instrument to breach “historic disparities in the national economy”.
But it warned against empowerment laws that include clauses which “oppose the very essence for which they were promulgated in the first place”.
Iindji further emphasised that all industries and sectors had to give input so that no one could feel left out. This must be also in line with new amended Namibia Promotion Investment Act so that Namibian interests should come first.
The NCCI also welcomed the extension of the finance ministry's tax incentive programme, but said its timing was not ideal, given the hardship SMEs had been experiencing over the last two years due to government budget cuts.
However, Iindji encouraged businesses to pay their taxes on time.
“That is only way we can build a better Namibian House,” he stressed.
Iindji said most of the businesses that had registered for the tax amnesty would not be in a position to pay their arrears before the end of this month.
He asked the ministry to extend the deadline for registration and payment by another three to six months if possible.
CATHERINE SASMAN
“This is indeed good news. The government is for the people and is listening to our calls,” NCCI northern branch chairperson Tomas Iindji said yesterday.
Finance minister Calle Schlettwein made the announcement to all regional councils this week.
The exemption is pending the finalisation of the National Preferential Policy.
Schlettwein's notice pointed out that in the absence of a preferential policy the bid security requirement “has proven to be a limiting measure with regards to participation by small and upcoming entities”.
The notice stated that the procurement policy unit was fast-tracking the development and subsequent adoption of the codes of good practice on preferences.
At a national budget review function attended by Schlettwein at Ongwediva this week, Iindji said the bid security requirement was a creation of equity speculators wishing to exploit and disadvantage already struggling SMEs, while making money through third-party participation in case the prospective bidder did not have money in the bank.
The NCCI's northern branch had called on the ministry to remove the bid security requirement, arguing that it was not in the interest of local business people.
Iindji said its inclusion as a tender requirement would subject the previously disadvantaged to “perpetual structural poverty and suffering”.
The NCCI northern branch also welcomed the proposed New Equitable Economic Empowerment Framework (NEEEF) as an instrument to breach “historic disparities in the national economy”.
But it warned against empowerment laws that include clauses which “oppose the very essence for which they were promulgated in the first place”.
Iindji further emphasised that all industries and sectors had to give input so that no one could feel left out. This must be also in line with new amended Namibia Promotion Investment Act so that Namibian interests should come first.
The NCCI also welcomed the extension of the finance ministry's tax incentive programme, but said its timing was not ideal, given the hardship SMEs had been experiencing over the last two years due to government budget cuts.
However, Iindji encouraged businesses to pay their taxes on time.
“That is only way we can build a better Namibian House,” he stressed.
Iindji said most of the businesses that had registered for the tax amnesty would not be in a position to pay their arrears before the end of this month.
He asked the ministry to extend the deadline for registration and payment by another three to six months if possible.
CATHERINE SASMAN
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