Netvend drags Rundu to court over prepaid meter tender

Netvend Metering Solutions CEO Hans Hamukoto has approached the Windhoek High Court for an interdict to prevent the Rundu Town Council from entering into a contract for the procurement and installation of prepaid water meters.

The urgent application follows alleged irregularities and unlawful conduct regarding a procurement process. In his founding affidavit, Hamukoto said on 30 January, the town council called for the supply and delivery of smart prepaid meters and the commissioning of relevant software over a five-year period. The process was categorised under restricted bidding for goods.

“[Netvend] duly submitted its bid before the deadline, containing proprietary information and confidential business methods. However, complications arose when, on 16 April, Hamukoto followed up on the bid's status and discovered a notice of award had been issued on 12 April, yet had not been communicated. This notice revealed that the Rundu Town Council had selected another bidder [Lwayaha Trading], despite all bidders, including [Netvend], being deemed compliant,” the affidavit read.

Dissatisfied with the outcome, Hamukoto requested a reconsideration on 16 April, to which the council responded on 19 April.

“The Rundu Town Council’s response admitted to significant irregularities and suggested that the applicant had been disqualified, a claim that contradicted the initial notice stating no disqualifications,” he said.

Restructuring

Hamukoto filed a review application on 24 April.

According to him, despite the council's participation in the review process being “notably absent”, a review panel dismissed the application on 14 May.

“The review panel’s decision dismissing the review application is very wrong and is liable to be set aside. The main issues that featured in the review application were the unlawful disqualification of [Netvend] and the unlawful selection of Lwayaha,” court papers read.

Hamukoto claimed that the town council unlawfully agreed to a request from ABC Investment to replace itself with Lwayaha in the bidding process, on the basis that ABC was restructuring and because both entities are owned by the same individual.

“The public should not have to pay a service provider who was awarded [the tender] unlawfully and has no proven experience, where an experienced service provider is available and was purportedly unlawfully disqualified. If this installation is handled by an inexperienced service provider, not only will it impact the residents' access to water, but it will also negatively affect the council's ability to bill and collect money for the provision of water services.”

Not urgent

In its replying affidavit, CEO Olavi Nathanael denied that the town council conceded to serious irregularities and unlawful conduct.

“[Netvend] does not point out the alleged concessions. There are no irregularities or unlawfulness. The award is not a subject of this application,” he said.

He added that the Rundu Town Council made a decision to award Lwayaha and has already signed the contract. “[Netvend] has not demonstrated that the matter is urgent. I pray that the application be struck from the roll with costs, for lack of urgency,” he wrote.

Lwayaha owner Guo Yunhai, in his replying affidavit, said the council’s decision to award his company the bid is not illegal.

“Accordingly, a contract signed on 12 March is still valid. [Netvend] has failed to make a prima facie case for urgency and for the interdictory relief to be granted. I pray that this court will dismiss the application with costs,” he said.

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