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NOT ONE TO DIE: The Review Board of the Central Procurement Board of Namibia says a decision to cancel a lucrative medical goods supply bid for the ministry of health is unlawful.
NOT ONE TO DIE: The Review Board of the Central Procurement Board of Namibia says a decision to cancel a lucrative medical goods supply bid for the ministry of health is unlawful.

Stink of condom tender refuses to fade

Ogone Tlhage
The cancellation of a bid for the provision of clinical supplies to the health ministry was unlawful, the Central Procurement Board of Namibia’s (CPBN) review panel has said.

CPBN in February announced the cancellation of the bid on grounds that “the aggregate total cost of the bid in question exceeds the total cost estimate provided by the public entity”.

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

Pulling the rug from under the CPBN, 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.

“The notice issued by [CPBN] and dated February 2023, cancelling the bid... for the ministry of health is hereby declared as ultra vires, unlawful and therefore set aside,” Tjivikua said.

The board still has leeway to cancel the bid if it so chooses, he added.

“If [CPBN] is still desirous to cancel the bid in question, such cancellation be done in terms of the relevant provisions of the Act and/or its regulations instead of Section 54 (1), as per the preceding discussions of this order, that [the board] file an application seeking the cancellation of the bid in question with the review panel or the High Court of Namibia for a determination.”

Expensive mistake

CPBN would still deliberate on the way forward following Tjivikua’s ruling, spokesperson Johanna Kambala said.

“The CPBN only received the review panel order last week Wednesday, hence the board is still to be briefed and adjudicate on the matter before CPBN can pronounce itself,” she said.

The health ministry and CPBN have previously warned that cancelling the medical supply tenders that evoked public emotion recently would prove to be an expensive mistake.

CPBN said there is neither legal nor moral basis to cancel the bids, adding that even President Hage Geingob has no direct authority to do so.

The public outcry included calls for Geingob to intervene, but he said since the change in public procurement legislation, he has no such powers.

He, however, called on CPBN to do the right thing.

Million-dollar deal

Part of the tender was awarded to a three-year-old company owned by businessman Shapwa Kanyama’s company Amnics Trading, which only employed three people on a permanent basis.

The N$650 million tender includes the supply of surgical gloves for N$400 million, condoms for N$111 million, and other medical supplies.

This contract was part of the N$2.8 billion batch of health tenders awarded by CPBN.

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Namibian Sun 2024-11-22

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