State Finance Act flouted in HKIA scandal
Local lawyer Sisa Namandje has suggested that the State Finance Act was flouted when he recently argued in an appeal case of the government versus Chinese construction firm Anhui Foreign Economic Construction Group (AFECC).
AFECC won the bid for the upgrade and construction of Hosea Kutako International Airport, which was estimated to cost N$7 billion at the time.
The government challenged the decision to grant the tender to AFECC in September last year. The challenge was shot down by Judge Shafimana Ueitele in the High Court when he ruled that there had been interference in the duties of works and transport minister Alpheus !Naruseb and the Namibia Airports Company when the tender was halted by President Hage Geingob.
Making a case for the government, Namandje argued that the State Finance Act was flouted. “There was no decision by the minister [Schlettwein] or cabinet to approve a specific loan [or concession].”
According to Namandje, the NAC also sought the assistance of the National Planning Commission and the Ministry of Finance and the Chinese embassy. It was also argued that the minister of transport suggested that the funding would be handled by the treasury since the NAC did not have the financial means to carry out the upgrade of the airport. “One can clearly see that treasury support had not been given,” said Namandje.
He continued, saying: “We are not contending that the NAC does not have the legal standing for the construction of the airport, [however] if you are bringing government to purchase, government procedures must be followed.”
Appearing on behalf of AFECC, Senior counsel Casim Nazeer argued that Geingob had interfered in the duties of the Namibia Airports Company.
“There is not a single document which suggests that because of interference, we do not want to go ahead. The NAC tender process was fair. The interference from the president was illegal.”
Nazeer also denied that the NAC board and its chief executive officer had attempted to trigger section 7 of the State Finance Act by suggesting that the funding would be guaranteed by the treasury.
“The NAC did not propose this, the NAC has at all times engaged government,” said Nazeer.
Nazeer was instructed by law firm Tjombe and Elago, and was assisted by Werner Boesak and Sandra Vries.
Namandje represented the government and was assisted by Nambili Mhata.
Judges of Appeal Dave Smuts, Sylvester Mainga and Chief Justice Peter Shivute heard the appeal and reserved judgement.
OGONE TLHAGE
AFECC won the bid for the upgrade and construction of Hosea Kutako International Airport, which was estimated to cost N$7 billion at the time.
The government challenged the decision to grant the tender to AFECC in September last year. The challenge was shot down by Judge Shafimana Ueitele in the High Court when he ruled that there had been interference in the duties of works and transport minister Alpheus !Naruseb and the Namibia Airports Company when the tender was halted by President Hage Geingob.
Making a case for the government, Namandje argued that the State Finance Act was flouted. “There was no decision by the minister [Schlettwein] or cabinet to approve a specific loan [or concession].”
According to Namandje, the NAC also sought the assistance of the National Planning Commission and the Ministry of Finance and the Chinese embassy. It was also argued that the minister of transport suggested that the funding would be handled by the treasury since the NAC did not have the financial means to carry out the upgrade of the airport. “One can clearly see that treasury support had not been given,” said Namandje.
He continued, saying: “We are not contending that the NAC does not have the legal standing for the construction of the airport, [however] if you are bringing government to purchase, government procedures must be followed.”
Appearing on behalf of AFECC, Senior counsel Casim Nazeer argued that Geingob had interfered in the duties of the Namibia Airports Company.
“There is not a single document which suggests that because of interference, we do not want to go ahead. The NAC tender process was fair. The interference from the president was illegal.”
Nazeer also denied that the NAC board and its chief executive officer had attempted to trigger section 7 of the State Finance Act by suggesting that the funding would be guaranteed by the treasury.
“The NAC did not propose this, the NAC has at all times engaged government,” said Nazeer.
Nazeer was instructed by law firm Tjombe and Elago, and was assisted by Werner Boesak and Sandra Vries.
Namandje represented the government and was assisted by Nambili Mhata.
Judges of Appeal Dave Smuts, Sylvester Mainga and Chief Justice Peter Shivute heard the appeal and reserved judgement.
OGONE TLHAGE
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