N$2.8 billion health tenders resurrected

Entities that won tenders to supply the ministry of health with clinical supplies - before the process was halted amid a huge public outcry - have today and tomorrow to convince procurement authorities why the N$2.8 billion contracts should not be reversed for good.

In February, the Central Procurement Board of Namibia (CPBN) cancelled the controversial N$2.8 billion tender for the delivery of clinical supplies to the ministry, saying the aggregate total exceeded the total cost estimates.

The cancellation followed sustained pressure from many quarters, amid allegations of favouritism, corruption and inflated prices.

But speaking to Namibian Sun yesterday, CPBN acting chairperson Amon Ngavetene said bidders would get a second bite at the cherry when they submit motivations why the clinical supplies bids should not be cancelled in their entirety.

“We are going to implement the review panel's order, which basically means that we have to give the bidders the right to be heard before we make a decision on whether we go on, or cancel,” he said.

The CBPN had informed the respective bidders to motivate why the bids should not be cancelled, Ngavetene said.

“We have already communicated to the bidders to make a submission and show cause as to why the board should not eventually cancel the bid,” he said.

“We are expecting that the bidders will make their submissions on or before 4 August.”

Unlawful cancellation

The CPBN review panel had previously said the bid cancellation was unlawful.

CPBN in February announced the cancellation of the bid on grounds that the costs exceeded the ministry’s estimates.

That was based on Section 54(1)(b) of the Public Procurement Act.

Pulling the rug from under the board, panel chairperson Kenandai Tjivikua said the decision to cancel the lucrative bid was illegal. This follows an appeal against the cancellation by prospective supplier Taliindje Investments in March.

Massive discrepancy

The board received applications for reconsideration from 29 of the 90 bidders who participated in the process.

“In addition, the CPBN wishes to inform the public that there was a discrepancy in the requested quantities of item number 270 (disposable surgeons’ gloves), which stated 30 million, whilst the correct quantity is three million. A revised notice for the selection of procurement award will be issued in this regard.

“The rectification of these errors may result in the reduction of the currently recommended amounts from hundreds of millions to tens of millions.”

Ngavetene noted that the bid evaluation committee evaluated all bidder documents submitted to the board.

“The bidders were required to submit financial statements for the past two years, of which all recommended bidders met this requirement. The issue of a bidder being registered two years ago is factually incorrect, as the documentation indicates that the company in question has been in operation for more than two years,” he said.

The procurement board’s response comes after Amnics Trading - which has been under scrutiny by industry players - was awarded a N$650 million tender for medical supplies. This despite the company allegedly only being registered three years ago, and only employing three people.