EDITORIAL: Failing local contractors bleed state coffers
The Namibian government has long been accused of favouring foreign contractors over local companies when awarding major state contracts. Critics argue that this practice undermines local businesses and deprives Namibians of economic opportunities. However, the reality is far more complex – and deeply concerning. The unfortunate truth is that too many local contractors are failing to complete their projects, leaving the state with no choice but to bring in competent foreign firms to pick up the pieces.
The real question, then, is: How much is this failure costing the Namibian taxpayer?
Recent cases across multiple sectors – whether in road construction, housing projects or government infrastructure – reveal a disturbing pattern. Local contractors are winning lucrative government tenders only to abandon projects halfway, citing financial difficulties, lack of capacity or poor project management. The consequences are severe: delays, escalating costs and, in many cases, the need to start from scratch with a new contractor. This has left the government trapped in a cycle of reissuing tenders, ultimately paying more than initially budgeted.
One glaring example is the construction of critical road networks, where several projects have stalled due to contractor insolvency or mismanagement. When a local company fails to deliver, government must either inject more taxpayer money into resuscitating the project or hire a foreign contractor to complete the work. Foreign companies, often more experienced and better equipped, tend to get the job done – but at an additional cost. This wasteful expenditure is not a case of government preference for foreign firms but rather a desperate measure to ensure projects are completed.
Until local contractors prove themselves capable of meeting deadlines and completing projects as agreed, the government has little choice but to look elsewhere.
The real question, then, is: How much is this failure costing the Namibian taxpayer?
Recent cases across multiple sectors – whether in road construction, housing projects or government infrastructure – reveal a disturbing pattern. Local contractors are winning lucrative government tenders only to abandon projects halfway, citing financial difficulties, lack of capacity or poor project management. The consequences are severe: delays, escalating costs and, in many cases, the need to start from scratch with a new contractor. This has left the government trapped in a cycle of reissuing tenders, ultimately paying more than initially budgeted.
One glaring example is the construction of critical road networks, where several projects have stalled due to contractor insolvency or mismanagement. When a local company fails to deliver, government must either inject more taxpayer money into resuscitating the project or hire a foreign contractor to complete the work. Foreign companies, often more experienced and better equipped, tend to get the job done – but at an additional cost. This wasteful expenditure is not a case of government preference for foreign firms but rather a desperate measure to ensure projects are completed.
Until local contractors prove themselves capable of meeting deadlines and completing projects as agreed, the government has little choice but to look elsewhere.
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Namibian Sun
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