Ministry defends awarding N$25m tender despite ‘expired’ document

The health ministry says it got ‘clear and direct guidance’ from the Employment Equity Commission when it awarded a N$25 million tender to Erongomed, which submitted an outdated affirmative action certificate with its application, contrary to tendering procedures.

The tender is for the supply, delivery, installation, commissioning and training regarding 17 haemodialysis machines, 17 dialysis chairs, three water treatment units, four defibrillators, six blood gas analysers, eight patient monitors, four various body composition monitors, four scales and four electrocardiogram (ECG) machines, among others.

Letters have been flying between ministerial officials, with some saying they were not comfortable issuing purchase orders related to this tender because they feared being charged with corruption by the Anti-Corruption Commission (ACC).

The ministry defended its conduct by stating that Erongomed is a ‘relevant employer’ and affirmative action certificates of such employers have no expiry date.

Erongomed falls under Avacare Health Group, which is owned by Vikramkumar Naik, a Zimbabwean national who has since acquired Namibian citizenship. Medical tender guru Shapwa Kanyama has over the years denied allegations that he is Naik’s business proxy and front in Namibia.

‘Insubordination’

“Erongomed Heath Distributors is a relevant employer in terms of Section 27(1)(a) to (b) as per certificate issued, and the affirmative action certificate of relevant employers has no expiry date. However, it is expected to submit a report not later than 18 months from the date on which such employer has been identified as a relevant employer,” the ministry said in one of its responses to the concerns raised.

“With reference to the [Affirmative Action (Employment) Act], a relevant employer's certificate is only invalid when - in terms of Section 41(b)(ii) - final order is issued by the review panel disapproving the next affirmative action report following on the affirmative action report for which such compliance certificate had been issued. Or Section 41(b)(il), if the relevant employer concerned fails to submit a further affirmative action report under the provisions of Section 27(2),” secretary to the ministry’s procurement committee, Evaristus Iita, wrote on 2 September.

The letter was directed to Johannes Gaeseb, the director of clinical support services in the ministry. This was after ministerial staff refused to issue purchase orders to Erongomed, saying they were not comfortable doing so because of the manner the tender was awarded. Iita said in his letter that refusal to issue purchase orders amounted to ‘insubordination’.

“Withholding procurement activity or refusing to carry out a delegated function [regarding the] requisition and issuing of a purchase order of an approved procurement by the accounting officer [executive director] is tantamount to insubordination, and undermining the established procurement structure. It is unacceptable. Let us ensure that the purchase orders are issued without any further delays," Iita said to Gaeseb.

The ministry further produced a letter, dated 7 May 2021, by finance minister Ipumbu Shiimi, who wrote: “It has come to the Procurement Policy Unit's attention that some public entities have been disqualifying bidders on the basis that the affirmative action compliance certificate submitted - as required under Section 50(2)(e) - is older than 12 months”.

“The [unit], in consultation with the Office of the Employment Equity Commissioner, wishes to inform public entities that disqualifying bidders based on the 12 months’ validity period is incorrect and should be discontinued,” the letter read.

Not on my watch

Health ministry executive director Ben Nangombe this week said the allegations that the process was fraudulent were one-sided and devoid of truth. "The allegations are designed to malign and defame. Whoever is making the allegations has no national interest at heart. The delays caused by obstructionists could cost lives,” he said.

“There is clear and direct guidance from the Employment Equity Commission regarding the [validity of documents]. There is no reason why an award would be made to an entity that does not meet the requirements. Our processes follow and comply with the law strictly,” Nangombe added.

“We are here to provide healthcare services to our people. We will not be derailed by those who act based on misapplication of the law to obstruct progress. That will not be allowed on my watch. If you wish to review the relevant documents, you are welcome.”