‘Tax-evading’ firm scoops N$340m Usakos-Karibib road tender
Zhong Mei Engineering Group, which was recently accused of tax evasion by the Namibia Revenue Agency (NamRA), has emerged as the winner of a tender to upgrade the road between Usakos and Karibib in the Erongo Region, worth over N$340 million.
NamRA last month shook the Chinese-owned company by abruptly deducting N$33 million from its bank account in lieu of outstanding taxes. The company has dragged the revenue agency to court, seeking a reversal of the transaction.
Zhong Mei formed part of seven companies – all Chinese – who were shortlisted for that road project, and it has now emerged the winner, according to documents seen by Namibian Sun.
The shortlist sparked outcry recently for not featuring a single Namibian company.
At the time, the Chinese embassy in Windhoek clarified that the upgrade of the Karibib-Usakos road is not funded by its government and thus it did not participate in the process that saw all seven companies shortlisted for the job being Chinese. The project is being financed by Germany's state development bank, KfW.
Following procedures
The Roads Authority (RA), which owns the project, said it did not receive a significant number of bids from Namibian companies for the upgrade. Instead, only three Namibian companies showed interest in the bidding process.
Zhong Mei received confirmation on 26 July from RA boss Conrad Lutombi that its bid had been successful.
Any bidders with objections have until today, 3 August, to apply for a review of the decision.
Lutombi yesterday asked for written questions when asked whether paying taxes was not a perquisite for any company to scoop a state tender.
He briefly said: “All I can say is, the companies must be registered in Namibia and comply with good standing and social security requirements. For now, we are just following the correct procedures and that is in line with Public Procurement Act”.
About Zhong Mei
Since 2015, the company has been working on several large-scale state projects, such as the Rundu abattoir upgrade and construction of the main and site buildings; the district road from Oshakati to Ongenga; University of Namibia hostel blocks at Neudamm, and the second phase of the construction of the ministry of fisheries’ new head office.
Zhong Mei has also worked on and upgraded the Swakopmund-Henties Bay and Uis roads as well as the construction of the Oshoopala bridge over the Okatana River in Oshakati and some low-income housing projects.
The new Windhoek to Hosea Kutako International Airport dual carriageway and the Swakopmund-Henties Bay-Uis-Khorixas-Kamanjab road are also amongst the company’s projects.
Despite these multimillion-dollar tenders, NamRA said the company’s audits show that it recorded nil returns, no expenses and no income when it submitted its tax income return for 2013 to 2022.
NamRA last month shook the Chinese-owned company by abruptly deducting N$33 million from its bank account in lieu of outstanding taxes. The company has dragged the revenue agency to court, seeking a reversal of the transaction.
Zhong Mei formed part of seven companies – all Chinese – who were shortlisted for that road project, and it has now emerged the winner, according to documents seen by Namibian Sun.
The shortlist sparked outcry recently for not featuring a single Namibian company.
At the time, the Chinese embassy in Windhoek clarified that the upgrade of the Karibib-Usakos road is not funded by its government and thus it did not participate in the process that saw all seven companies shortlisted for the job being Chinese. The project is being financed by Germany's state development bank, KfW.
Following procedures
The Roads Authority (RA), which owns the project, said it did not receive a significant number of bids from Namibian companies for the upgrade. Instead, only three Namibian companies showed interest in the bidding process.
Zhong Mei received confirmation on 26 July from RA boss Conrad Lutombi that its bid had been successful.
Any bidders with objections have until today, 3 August, to apply for a review of the decision.
Lutombi yesterday asked for written questions when asked whether paying taxes was not a perquisite for any company to scoop a state tender.
He briefly said: “All I can say is, the companies must be registered in Namibia and comply with good standing and social security requirements. For now, we are just following the correct procedures and that is in line with Public Procurement Act”.
About Zhong Mei
Since 2015, the company has been working on several large-scale state projects, such as the Rundu abattoir upgrade and construction of the main and site buildings; the district road from Oshakati to Ongenga; University of Namibia hostel blocks at Neudamm, and the second phase of the construction of the ministry of fisheries’ new head office.
Zhong Mei has also worked on and upgraded the Swakopmund-Henties Bay and Uis roads as well as the construction of the Oshoopala bridge over the Okatana River in Oshakati and some low-income housing projects.
The new Windhoek to Hosea Kutako International Airport dual carriageway and the Swakopmund-Henties Bay-Uis-Khorixas-Kamanjab road are also amongst the company’s projects.
Despite these multimillion-dollar tenders, NamRA said the company’s audits show that it recorded nil returns, no expenses and no income when it submitted its tax income return for 2013 to 2022.
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