VP office loses N$1m in curtain deal
The Office of the Vice-President was left licking its wounds by a supplier who was paid N$1 million before delivering the required items.
JANA-MARI SMITH
WINDHOEK
Government lost N$1 million in a failed procurement deal for the Office of Vice-President after the supplier failed to deliver decorative goods for the second-highest office in the land.
The matter is currently in court with government trying to retrieve the N$1 037 440.45 paid to Karseboom, a struggling curtain supplier and maker, which has since closed shop.
In their defence, Karseboom said despite numerous pleadings for officials to select fittings and fabrics for the project, they didn’t receive cooperation and this resulted in their inability to deliver before the company went bust.
The civil case was launched in August 2018, the same month Karseboom, a 60-year family business that specialised in the sale of school uniforms, collapsed amidst severe financial turmoil.
Government has been relentless in its efforts to recover the money that was meant to buy curtains, scatter cushions and wallpaper for a decorative overhaul of the vice-president’s office and residence at the old state house.
Passing the buck
The civil suit stems from an October 2017 invitation to bid for the supply of soft-furnishings for the Office of the Vice President of Namibia, including private bedrooms, guest rooms, a library, entertainment lounge and dining room.
Former owner of Karseboom, Yolande Catherine Ciolek, argued that Karseboom was merely sub-contracted by a company called Cherry Tree Trading to assist with the tender, adding that her company never tendered for the job nor did she have any direct dealing with the vice president’s office.
Brendan Andrew Buchter, a former manager at Karseboom, is the majority owner of Cherry Tree Trading.
In affidavits submitted to court since then, Ciolek and Buchter hinted that the closing of the business was partly the fault of the tender and the subsequent failure of officials to assist in finalising the work.
Inaction
“Throughout the duration of the tender, the members of B Karseboom CC and Cherry Tree Trading CC worked hand-in-hand to assist state house in every way possible to complete the tender. This was to the ultimate demise of the two businesses,” Ciolek’s affidavit, submitted in October 2020, read.
She argued there was no “visible effort” from government officials to “even commence, let alone conclude, the basics of the tender.
“Without the choice of fabrics, nothing could be done.”
"Due to the financial resources being exhausted, caused by the lack of turnover from being on standby for seven months, the business was forced to close,"
Buchter wrote in an affidavit dated August 2019.
Government denies that the choosing of fabrics was to blame for the failure to deliver, arguing that the tender had set out the particular fabrics and no further discussion or decisions were necessary.
Trail of loss
Government lawyers say the money that was paid to Karseboom before the work commenced and the goods were installed was used by Ciolek to pay off her debts, including a home loan and outstanding taxes.
In her affidavit, Ciolek admits “the funds from state house had slowly been used to cover running costs whilst waiting for someone from state house to make a selection of fabrics.”
She confirmed that her company received the payment, and claims she “advised them [government] of the error of the payment, which should have been made to Cherry Tree CC”.
In email correspondence submitted to the court by the state, Ciolek offered to pay back the money with N$1 000 monthly instalments. The offer was declined.
“I have lost everything I worked for in my entire life. My only source of income is a state pension of N$1 300 per month.”
Orchestrated misrepresentations
Government accused Buchter of having orchestrated the misrepresentations made during the bidding and the payment processing phases.
“The bidding document under his signature created the impression that Cherry Tree Trading CC and Karseboom are one and the same entity. It states that Cherry Tree Trading CC is trading at Karseboom and further that Cherry Tree Trading is the holding company of Karseboom,” court papers read.
Buchter has argued he was only responsible for the day-to-day running of the business, and had no role in the finances of Karseboom. He further said since the loss of his job, he has no authority to represent Karseboom or speak on its behalf.
Government argued that Buchter and Ciolek “grossly abused” the juristic personality of their company names to win the bid.
The case was before High Court judge Marlene Tommasi in late January for a status update. Thus far, no new date for the case has been announced.
WINDHOEK
Government lost N$1 million in a failed procurement deal for the Office of Vice-President after the supplier failed to deliver decorative goods for the second-highest office in the land.
The matter is currently in court with government trying to retrieve the N$1 037 440.45 paid to Karseboom, a struggling curtain supplier and maker, which has since closed shop.
In their defence, Karseboom said despite numerous pleadings for officials to select fittings and fabrics for the project, they didn’t receive cooperation and this resulted in their inability to deliver before the company went bust.
The civil case was launched in August 2018, the same month Karseboom, a 60-year family business that specialised in the sale of school uniforms, collapsed amidst severe financial turmoil.
Government has been relentless in its efforts to recover the money that was meant to buy curtains, scatter cushions and wallpaper for a decorative overhaul of the vice-president’s office and residence at the old state house.
Passing the buck
The civil suit stems from an October 2017 invitation to bid for the supply of soft-furnishings for the Office of the Vice President of Namibia, including private bedrooms, guest rooms, a library, entertainment lounge and dining room.
Former owner of Karseboom, Yolande Catherine Ciolek, argued that Karseboom was merely sub-contracted by a company called Cherry Tree Trading to assist with the tender, adding that her company never tendered for the job nor did she have any direct dealing with the vice president’s office.
Brendan Andrew Buchter, a former manager at Karseboom, is the majority owner of Cherry Tree Trading.
In affidavits submitted to court since then, Ciolek and Buchter hinted that the closing of the business was partly the fault of the tender and the subsequent failure of officials to assist in finalising the work.
Inaction
“Throughout the duration of the tender, the members of B Karseboom CC and Cherry Tree Trading CC worked hand-in-hand to assist state house in every way possible to complete the tender. This was to the ultimate demise of the two businesses,” Ciolek’s affidavit, submitted in October 2020, read.
She argued there was no “visible effort” from government officials to “even commence, let alone conclude, the basics of the tender.
“Without the choice of fabrics, nothing could be done.”
"Due to the financial resources being exhausted, caused by the lack of turnover from being on standby for seven months, the business was forced to close,"
Buchter wrote in an affidavit dated August 2019.
Government denies that the choosing of fabrics was to blame for the failure to deliver, arguing that the tender had set out the particular fabrics and no further discussion or decisions were necessary.
Trail of loss
Government lawyers say the money that was paid to Karseboom before the work commenced and the goods were installed was used by Ciolek to pay off her debts, including a home loan and outstanding taxes.
In her affidavit, Ciolek admits “the funds from state house had slowly been used to cover running costs whilst waiting for someone from state house to make a selection of fabrics.”
She confirmed that her company received the payment, and claims she “advised them [government] of the error of the payment, which should have been made to Cherry Tree CC”.
In email correspondence submitted to the court by the state, Ciolek offered to pay back the money with N$1 000 monthly instalments. The offer was declined.
“I have lost everything I worked for in my entire life. My only source of income is a state pension of N$1 300 per month.”
Orchestrated misrepresentations
Government accused Buchter of having orchestrated the misrepresentations made during the bidding and the payment processing phases.
“The bidding document under his signature created the impression that Cherry Tree Trading CC and Karseboom are one and the same entity. It states that Cherry Tree Trading CC is trading at Karseboom and further that Cherry Tree Trading is the holding company of Karseboom,” court papers read.
Buchter has argued he was only responsible for the day-to-day running of the business, and had no role in the finances of Karseboom. He further said since the loss of his job, he has no authority to represent Karseboom or speak on its behalf.
Government argued that Buchter and Ciolek “grossly abused” the juristic personality of their company names to win the bid.
The case was before High Court judge Marlene Tommasi in late January for a status update. Thus far, no new date for the case has been announced.
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