Works ministry N$2 million tender goes sower
A works ministry tender to the tune of N$2 million for the delivery of toilet paper went wrong for a local company when the ministry cancelled it at the last minute citing a breach of contract.
The decision to cut the tender which had been awarded to Deluxe Trading CC resulted in discontent and the company dragged the ministry to court for it to accept the goods and pay for them.
All in all, Deluxe was tendered to supply toilet papers, paper towels, refuse bags and cardboard containers to central government stores while the tender was supposed to run for years with effect from 2014.
A local businessman runs the company by the name of Charles Michael Ochurub.
He said he had to take a loan with the now-defunct SME bank to supply the ministry with the said goods.
A memorandum of agreement was entered into by the works ministry’s permanent secretary, and the tender had to be extended for two months which the tender board approved, said Ochurub.
Deputy director in the centralised services directorate of the ministry, Kaarina Shetunyenga Nitembu, said the orders issued the company in November of 2016 had delivery dates of on or before 08/02/2017 and on or before 12/01/2017.
These dates, she said, were not honoured and no arrangements were made by Deluxe explaining why they could not deliver as specified.
“The orders were then cancelled by the ministry of works and transport on 11 April 2017, which in essence gave (Deluxe) more than enough time, even after the due dates to deliver the goods,” she said.
The ministry also said it was not aware whether Deluxe had paid any deposit to its suppliers.
“It is the condition of the tender agreement that the supplier (Deluxe) must observe the delivery date specified. Failure to deliver on the agreed date will result in the cancellation of the contract/tender,” said the ministry.
When contacted for a comment, Fredy Kadhila told The Villager that both parties have opted for a settlement agreement to resolve the matter to the advantage of the ministry.
However, this is on condition that the ministry does not demand legal costs from Deluxe.