TransNamib pleas rejected in land dispute Allexer Namundjebo The High Court has dismissed three special pleas raised by TransNamib Holdings Limited in its long-running dispute with Marmorwerke Karibib (Pty) Ltd over the transfer of land dating back more than 30 years. The dispute stems from a written agreement in 1992/1993 for the sale of immovable property owned by TransNamib.  The purchase price was N$3 000, with Marmorwerke covering the costs of subdivision, surveying, and registration.  Marmorwerke took possession of the land on 1 April 1993, pending transfer and said it fulfilled its obligations. TransNamib, however, according to court documents, failed to complete the transfer despite repeated requests. In 2017, Marmorwerke turned to the courts, seeking an order to compel TransNamib to transfer the property.  TransNamib then responded with three special pleas, namely, prescription, non-compliance with the Sale of Land Act, and lack of ministerial approval. The latter two were later abandoned. On 15 August, High Court judge Boas Usiku dismissed all three objections by TransNamib.  “The defendant’s special pleas of prescription, non-compliance with the Formalities in Respect of Sale of Land Act, and lack of ministerial approval are dismissed,” he ruled. The court also ordered TransNamib to pay Marmorwerke’s legal costs, including those of one instructing and two instructed counsel, without the usual limits. Usiku found that Marmorwerke’s claim is not a “debt” under the Prescription Act and therefore cannot be barred by time.  He said the relief sought was to enforce contractual obligations, not for money or goods. “​In my opinion Marmorwerke’s claim cannot be characterised as one for payment of money, delivery of goods or the rendering of services. I am therefore of the view that the defendant’s special plea of prescription has no merit and stands to be dismissed.”  Marmorwerke called four witnesses in its case, while TransNamib did not call any. The case was postponed to 24 September 2025 for a case management conference. Both parties must file a joint case management report by 17 September. 

#TransNamib #LandDispute #HighCourt #Marmorwerke #PropertyLaw

TransNamib revises locomotive procurement strategy Chamwe Kaira TransNamib says it is working closely with stakeholders, funders, and technical advisors to review and update its procurement strategy after the cancellation of its earlier locomotive tender.  The updated approach aims to ensure compliance, value for money, and alignment with operational needs. The company has been instructed by the government to diversify its locomotive fleet. To support this, TransNamib is sourcing a rail consultant to help guide the process. A new procurement approach for acquiring 23 locomotives is currently being developed.  The process is expected to be relaunched in the coming months, pending approval from financiers and governance structures. “Please take note that this project was cancelled and the public entity has been informed accordingly. On the way forward, CBN will await directives from the public entity on the way forward,” said Johanna Kambala, manager of stakeholder relations at the Central Procurement Board of Namibia (CPBN). The minister of works and transport, Veikko Nekundi, said TransNamib must come up with new timelines for the purchase of the 23 locomotives.  He had earlier cancelled the plan to procure general electric locomotives valued at N$1.7 billion due to concerns about sourcing from a single supplier. Nekundi confirmed that TransNamib is engaging with the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa on the way forward.  The planned locomotive acquisition formed part of a N$2.5 billion loan package secured from the two banks. Earlier this year, TransNamib said it intended to standardise its fleet with general electric/wabtec locomotives.  However, Nekundi said the government rejected the direct procurement method, instructing TransNamib to inform the procurement board that a new tender process must be launched. He said the new process should follow public procurement laws, open bidding to multiple suppliers, and consider a variety of technically compliant locomotive options suited to Namibia’s climate. Under the same loan facility, TransNamib also plans to upgrade its mechanical and heavy-duty equipment, steam boilers, tools, and acquire 300 waggons. Meanwhile, the company reported an increase in freight volumes in the first quarter of this year, reaching 330,410 tonnes, according to responses provided to Observer Money.

#TransNamib #LocomotiveProcurement #RailConsultant #SafetyFirst #InfrastructureDevelopment

TransNamib ordered to pay dismissed employees until retirement Hertta-Maria Amutenja TransNamib has been ordered by the Labour Commissioner to pay full salary and benefits to one of two employees dismissed after the 2018 illegal strike.  The payment will cover the period from the date of dismissal until his retirement in October 2019. The ruling follows a lengthy arbitration process that found the dismissals of Johannes Uwanga and Asser Birisamub to be substantively and procedurally unfair.  Arbitrator Matheo Rudath delivered the award this week, declaring that their dismissal violated the Labour Act. Uwanga, a senior train operator, was awarded compensation from the dismissal date until his retirement on 30 October 2019.  Birisamub, a train driver, was ordered to be reinstated with back pay from the date of dismissal to the date of reinstatement. In September 2018, over 400 TransNamib employees went on strike over stalled wage talks and salary freezes.  TransNamib declared the strike illegal, and the Namibia Transport and Allied Workers Union distanced itself from it.  The only ones disciplined and dismissed were Uwanga and Birisamub. The arbitration award pointed out serious procedural failures.  Rudath found that Simon Binda, who chaired the disciplinary hearing, was the immediate supervisor of the applicants.  This violated TransNamib’s Industrial Relations Policy, which requires an impartial chairperson, preferably from outside the department. “The use of the applicant supervisor as the chairperson of the disciplinary hearing may be the reason why there was no proper investigation report as required by the IR Policy,” Rudath stated. He criticised the chairperson for failing to justify why harsher penalties were imposed than those outlined in the policy.  He also said that the chairperson disregarded mitigating factors like Uwanga’s 31 years and Birisamub’s 20 years of service. “The chairperson failed to consider applicants’ mitigation, such as long service and age and the ability to acquire new competencies,” Rudath said. The arbitration also found that no formal investigation report was presented, and there were no clear reasons given for imposing dismissals. The employees were charged with intimidation, disobedience, and absenteeism. Rudath found insufficient evidence to prove intimidation. He said the evidence showed the two employees peacefully persuaded colleagues to join the strike. “There is not sufficient evidence to prove on a balance of probability that the applicants committed intimidation. Evidence shows the applicants peacefully persuaded colleagues to join an illegal strike,” he said. The absenteeism charge also fell apart after TransNamib failed to present work schedules to show whether the employees were supposed to be on duty during the strike.  Both employees asserted that their work schedules did not include the strike period. Uwanga and Birisamub testified that they acted as representatives of the striking workers and communicated between employees and management. Rudath confirmed this was valid under company policy, which allows workers to select spokespeople for grievances, regardless of union election status. Birisamub told the hearing that he faced financial hardship, including overdrafts and personal loans. He said he relied on his train-driving skills, a specialised job with few alternative options in Namibia. Rudath said the employees’ age and specific skills should have been considered before deciding on dismissal.

#TransNamib #LabourRights #EmployeeBenefits #Dismissal #Strike

TransNamib observes International Level Crossing Awareness Day - Namibia Economist TransNamib observes International Level Crossing Awareness Day  Namibia Economist

#TransNamib #InternationalLevelCrossingAwarenessDay #RoadSafety #RailSafety #Namibia

TransNamib hails court ruling on RedForce debt recovery contract TransNamib has welcomed the recent court ruling in which Quartile Investment CC lost an urgent application to annul a multi-million dollar tender won by RedForce Debt Management last week. The tender is meant to collect N$48 million of TransNamib debt over a period of a year. “This debt was accumulated over several years, largely due to unpaid rental fees for the use of TransNamib properties. There were extended periods where lease agreements were not honoured or payments were made inconsistently,” saysTransNamib spokesperson Kendall Swartz. Swartz says internal efforts to recover the debt had not always been successful, resulting in a substantial backlog that has constrained the company’s financial capacity. “Unfortunately, internal recovery mechanisms were not always effective, leading to a significant backlog,” he says. RedForce was appointed to take over the process, a decision TransNamib says was driven by the need for specialised expertise. “Given the size of the outstanding amount and the importance of recovering it swiftly, we saw the need for specialised expertise. RedForce has a proven track record in recovering commercial debt. “Yes, the early recovery of N$4 million is an encouraging sign. It demonstrates both the effectiveness of RedForce’s methods and the validity of our claims. This initial success reinforces our confidence in selecting the right partner to manage this process professionally and transparently,” he states. However, he cautions that potential delays or disputes could arise. The N$48 million debt, according to Swartz, has significantly impacted TransNamib’s operational stability, constraining the company’s liquidity and ability to invest in operational improvements, infrastructure upgrades and other critical areas. He adds that the company remains “cautiously optimistic” that most, if not all, of the outstanding amount can be recovered within 12 months. “Timely recovery is essential, not only to stabilise our financial position, but also to demonstrate sound governance and protect public assets. We will be strengthening internal controls around property management, lease monitoring and collection.” “We also remain open to working with tenants in good faith, but we will not compromise on the principle that obligations must be honoured. This is about restoring financial discipline and ensuring sustainability for the long term,” he says. Photo: Contributed The post TransNamib hails court ruling on RedForce debt recovery contract appeared first on The Namibian.

#TransNamib #DebtRecovery #CourtRuling #RedForce #Investment

RedForce wins TransNamib multimillion-dollar tender fight Redforce Debt Management has successfully fended off a legal challenge of its tender to collect N$48 million in debt on behalf of TransNamib. This follows legal action taken by rival firm Qaurtile Debt Collection. In his ruling, High Court justice Thomas Masuku has determined that the applicant lacked urgency. The court this week concluded that Qaurtile did not immediately approach it soon after hearing that the award had gone to RedForce on 8 April this year, and only brought its application 22 days later. “The period between 10 and 30 May 2025 is totally unexplained. This failure on the part of the applicant cannot go unnoticed and unpunished. It has been stated time and again that a party who approaches the court on urgency seeks the concurrence of the court in that party, jumping the queue in colloquial terms. “For the court to be party to this enterprise, which inevitably affects other litigants, who have lodged their cases earlier, there must be a good, full and compelling explanation why the applicant did not approach the court as soon as the cause of urgency arose,” Masuku said. The court has also refused to entertain other legal matters in Qaurtile’s application. “I find it unnecessary to consider the other legal issues that arise, because failure to overcome the hurdle of urgency, in this matter, renders it superfluous for the court to consider the other relief sought at this point. “As a result, it is unnecessary to consider the question whether or not the applicant failed to exhaust domestic remedies provided by the act and the question of whether or not this is an appropriate case in which to grant an interim interdict,” Masuku said. Qaurtile Debt Collection had petitioned the High Court to declare RedForce’s contract unlawful and void, claiming the debt-recovery tender was awarded through an unfair process that denied it a legitimate opportunity to compete. TransNamib had awarded the contract to RedForce two months ago through a request for proposals from its list of pre-approved service providers. “We are happy that we can move on with work . . . there are no hard feelings,” RedForce chief executive Julius Nyamazana said this week. Qaurtile had argued that the value of the contract exceeded the procurement threshold and should have gone through an open public bidding process. Despite the legal challenge, RedForce had already begun recovering the outstanding debt. Court documents revealed the company had recouped N$4 million between 4 April and 7 May this year. In handing down judgement, Masuku dismissed Qaurtile’s application and ordered it to pay the costs for the application to both TransNamib and RedForce Debt Management. The case has been struck from the roll. TransNamib did not immediately comment yesterday. “I just need to get feedback from the procurement and finance department and get back to you,” said spokesperson Kendall Swartz. The post RedForce wins TransNamib multimillion-dollar tender fight appeared first on The Namibian.

#RedForce #TransNamib #DebtManagement #TenderWin #LegalChallenge

RedForce wins court battle over mulitmillion-dollar TransNamib tender Redforce Debt Management has successfully defended its appointment to collect a N$48-million debt on behalf of TransNamib, following a legal challenge brought by rival firm Qaurtile Debt Collection. Qaurtile had petitioned the High Court to declare RedForce’s contract unlawful and void, claiming the debt-recovery tender was awarded through an unfair process that denied them a legitimate opportunity to compete. TransNamib had awarded the contract to RedForce two months ago through a request for proposals from its list of pre-approved service providers. “We are happy that we can move on with work . . . there are no hard feelings,” said Redforce chief executive Julius Nyamazana. Qaurtile had argued that the value of the contract exceeded the procurement threshold and should have gone through an open public bidding process. Despite the legal challenge, RedForce had already begun recovering the outstanding debt. Court documents revealed the company had recouped N$4 million between 4 April and 7 May this year. In handing down judgement, the High Court dismissed Qaurtile’s application and ordered them to pay the costs for the application to both TransNamib and Redforce Debt Management. The post RedForce wins court battle over mulitmillion-dollar TransNamib tender appeared first on The Namibian.

#RedForce #TransNamib #DebtManagement #LegalVictory #CourtBattle

Procurement board tackles TransNamib tender cancellation Chamwe Kaira The Central Procurement Board of Namibia says it is dealing with the government’s decision to cancel TransNamib’s plan to buy 23 new locomotives for N$1.7 billion. Johanna Kambala, Manager of Stakeholder Relations at the board, said the matter is sensitive and the board will respond to questions at an appropriate time. Minister of Works and Transport Veikko Nekundi confirmed that the locomotive tender had been cancelled due to concerns over sourcing from a single supplier. He said TransNamib now needs to come up with new timelines for the locomotive purchase. Earlier this year, TransNamib announced plans to buy General Electric locomotives as part of the fleet standardisation process. The purchase formed part of a N$2.5 billion loan the company received from the Development Bank of Southern Africa and the Development Bank of Namibia. But Nekundi said the government was against the direct procurement of locomotives from a single manufacturer. He said Namibia’s interests must come first and that relying on one foreign supplier posed a risk. Nekundi said in the meantime, TransNamib is expediting the refurbishing programme of its old locomotives. He added TransNamib has been instructed to inform the Central Procurement Board of Namibia that a new tender process will now be launched in line with public procurement laws. The new process will open bids to multiple suppliers and explore different options for efficient locomotives suited to Namibia’s climate. TransNamib is also working with the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa to decide on the way forward. In the meantime, Nekundi said TransNamib is speeding up the refurbishment of its old locomotives. Under the same loan, TransNamib plans to upgrade its mechanical and heavy-duty equipment, steam boilers, and tools, and also purchase 300 wagons.

#Procurement #TransNamib #TenderCancellation #Locomotives #Namibia

TransNamib taken to court over N$48m RedForce tender Transnamib Limited Holdings has been taken to court for allegedly handpicking RedForce Debt Management for a tender to collect N$48 million owed to the national railway company. RedForce was appointed last month on a 12-month contract but industry players immediately criticised the awarding process, claiming they were denied a fair chance to compete for the contract. RedForce said between 4 April and 7 May 2025 it has already recovered N$4 million of the N$48 million it is supposed to collect. The tender was awarded through a request for proposals, but players say it should have been done through open bidding as the tender amount exceeded the threshold. Qaurtile Debt Collection has since taken TransNamib to court and wants the High Court to declare the awarding of tender to the RedForce was unlawful and void. “The decision of TransNamib to conduct the bidding process for the provision of the debt collection service in terms of the Public Procurement Act should be cancelled and [they should] start the process afresh,” said Qaurtile Debt Collection lawyers Jauch Nyashanu Naunyango. The lawyers said TransNamib wrongfully, unlawfully and unfairly conducted the bidding process in terms of the Public Procurement Act. “TransNamib deliberately excluded Qaurtile Debt Collection from the bidding process and did not include them in the shortlist of bidders drawn up in terms of the Public Procurement Act,” the law firm said. RedForce deputy executive officer and legal adviser Magaret Malambo said Qaurtile Debt Collection has failed to exhaust the internal remedies available under the Public Procurement Act. Malambo also accused Qaurtile Debt Collection of not rendering debt collection services to companies cited as references. Those companies are the Development Bank of Namibia (DBN), Mobile Telecommunications Limited (MTC), and the Namibia Competition Commision. “The only known debt collection contract held by Qaurtile Debt Collection is that of the Namibia Investment and Development Agency (Nida) awarded in May/June 2024. Prior to this award, Qaurtile Debt Collection was not active in debt collection services for any government or state-owned entity,” Malambo said. Court documents, however, indicate that Qaurtile Debt Collection has reference letters from Nida, MTC, DBN and Old Mutual. TransNamib executive for human capital and acting chief executive Webster Gonzo said Qaurtile Debt Collection’s application to court is not urgent. “Qaurtile Debt Collection delayed bringing this application without reasonable explanation. TransNamib will ask the application to be struck from the court roll for lack of urgency,” he said. The case will be heard tomorrow in the Windhoek High Court. The post TransNamib taken to court over N$48m RedForce tender appeared first on The Namibian.

#TransNamib #RedForce #Namibia #Tender #DebtCollection

TransNamib seeks new locomotives after N$2.5-billion tender cancelled over geopolitics TransNamib is exploring new locomotive options after a N$2.5-billion tender was cancelled due to geopolitical concerns and procurement irregularities. The national rail company says it is engaging other rail operators on various locomotive options, following the cancellation of the tender by the Ministry of Works and Transport. Works and transport minister Veikko Nekundi last week directed the cancellation of the tender, citing geopolitics that could affect Namibia’s economy. The cancellation was done after it was discovered the tender was awarded to a single manufacturer. TransNamib board chairman Theofelus Mberirua in a statement issued on Monday said the cancellation was due to recent global geopolitical developments, the risk of unilateral sanctions, escalating tariffs and potential trade wars. The board, in consultation with the ministry, has cancelled the direct procurement by the Central Procurement Board of Namibia (CPBN) of 23 new Wabtec/General Electric locomotives. The amount of N$2.5 billion is a loan extended by both the Development Bank of Namibia and the Development Bank of Southern Africa. “Going forward, the company will extensively explore various locomotive options that are technically compliant with a proven after-sales service, and are able to operate in our unique Namibian conditions,” Mberirua said. He said ongoing discussions are being held with other national rail operators in the Southern African Development Community region to explore collaboration and share expertise on proven fit-for-purpose locomotives and compatibility regarding the interchangeability of critical machine parts. Mberirua said the procurement process is fully managed by the CPBN, with transparency and fairness ensured through rigorous oversight, including a review by an independent third-party technical adviser appointed by the lending institutions. “The company reiterates the importance of noting that regarding the banks’ funding, TransNamib will not receive the funding directly, but disbursements related to the funding will be made directly to suppliers,” he said. The post TransNamib seeks new locomotives after N$2.5-billion tender cancelled over geopolitics appeared first on The Namibian.

#TransNamib #RailTransport #Geopolitics #Namibia #Locomotives

N$2.5-billion tender scrapped over one-tracklocomotive deal THE government has cancelled TransNamib’s N$2.5-billion locomotive procurement tender, citing concerns over single-source supply risks and a lack of competitive bidding. The Ministry of Works and Transport has cancelled the tender with immediate effect. The loan was intended to procure 23 electrical diesel locomotives for TransNamib to supplement its ageing locomotives. TransNamib has received N$500 million from the Development Bank of Namibia and N$2.1 billion from the Development Bank of Southern Africa. This is due to the company’s direct procurement through the Central Procurement Board of Namibia (CPBN) to award a tender to a single manufacturer. Works and transport minister Veikko Nekundi announced the cancellation of the tender in the National Assembly yesterday. He said he wants to fully understand TransNamib’s procurement process for locomotives through the CPBN. “Considering that in the global market there is not only one manufacturer of quality locomotives, and the geopolitics of the world today . . . it will be too risky to procure locomotives with a single manufacturer and without competition. “Following a thorough consultation with relevant stakeholders in line with the Procurement Act, a strategic decision was made to halt the procurement process as it will not fully serve the desired outcome in the broader sense,” Nekundi said. He directed TransNamib to cancel the procurement process with immediate effect and to commence with other procurement processes. “We do not support acquiring locomotives from a single manufacturer,” he said. Nekundi further instructed TransNamib to ensure that the CPBN is informed of the latest development. Consequently, in a letter dated 6 May, the CPBN approved the cancellation of the tender for the supply and delivery of 23 new general electrical diesel locomotives. Nekundi has called for the alternative supply of locomotives that are efficient and adaptable to Namibia’s climate. Procuring from a single source exposes Namibia to current and future trade wars compounded by unilateral sanctions. This, the minister said, would greatly compromise the sovereignty of the country as these sanctions do not have any regard for railway diplomacy. “It is prudent that through this initial stage of procurement we ensure all potential risks are mitigated when procuring and importing assets of current use,” Nekundi said. Earlier this year, TransNamib said it would spend N$311 million on rebuilding seven locomotives. This involves dismantling and refurbishing each locomotive to extend its operational lifespan to 20 years. TranNamib is yet to release a statement. The post N$2.5-billion tender scrapped over one-tracklocomotive deal appeared first on The Namibian.

#TransNamib #Procurement #TenderCancellation #Locomotives #Namibia

Amupanda questions TransNamib’s U.S. Locomotive deal Amupanda questions TransNamib’s U.S. Locomotive deal NBC Online Thu, 04/24/2025 - 17:09

#TransNamib #LocomotiveDeal #Amupanda #FinanceMinister #TransportMinistry

N$1b Transnamib Locomotive Tender Blocked [New Era] Transport minister Veikko Nekundi has halted the procurement of 30 locomotives from a company in the United States by TransNamib.

#TransNamib #Locomotives #Namibia #TransportNews #Procurement

RedForce to collect N$48m for TransNamib Transnamib acting chief finance executive Monde Inambao-Samwele says RedForce Debt Management has been appointed to collect N$48 million owed to the national railway company. This follows criticism that the state-owned railway operator allegedly hand-picked RedForce to collect up to N$100 million in arrears, bypassing open tender procedures. Industry players claim the 12-month contract, effective from 1 April, should have been subjected to open bidding due to its value exceeding the public procurement threshold. Instead, it was awarded via a request-for-proposal process. Inambao-Samwele dismisses the allegations as “misleading and false”. “The debtors’ book handed over is approximately N$48 million. The cost of collection will be borne by the defaulters as a penalty – not by TransNamib,” she said in a media statement this week. She insisted that the contract was awarded fairly and transparently. “There is documented evidence that RedForce met the technical and financial evaluation criteria and was found to be the most advantageous bidder,” she said, adding that the process followed procurement regulations. RedForce will be responsible for recovering debts older than 60 days from clients and tenants. “This engagement is a strategic financial initiative aimed at strengthening revenue collection and improving our financial position,” Inambao-Samwele said. TransNamib has faced ongoing financial woes. In 2022, the government wrote off N$410 million in debt, and last year the company secured a N$2.6 billion loan from the Development Bank of Namibia and the Development Bank of Southern Africa for new locomotives and wagons. RedForce chief executive Julius Nyamazana has also defended the company’s appointment, saying: “We were awarded the contract through a transparent, legally compliant process. Our proposal met all the necessary requirements and was evaluated on merit, experience and our proven ability to recover debt.” The post RedForce to collect N$48m for TransNamib appeared first on The Namibian.

#TransNamib #DebtManagement #PublicProcurement #RailwayIndustry #Namibia

TransNamib ‘hand-picks’ Redforce for N$100-million debt-collection tender Transnamib has allegedly hand-picked RedForce Debt Management to collect over N$100 million owed to the national railway company. TransNamib’s 2020/21 annual report showed its debt book previously stood at N$75 million, with an additional N$25 million written off as bad debt. The company’s outstanding debt has since ballooned to more than N$100 million, prompting it to outsource collection services through a 12-month contract. Yesterday’s announcement of RedForce as the appointed service provider, however, drew immediate backlash from industry players. They claim they were denied a fair chance to compete for the contract. The tender was awarded through a request for proposals, but players say it should have been done through open bidding as the tender amount exceeded the threshold. Some industry players yesterday told The Namibian they intend to challenge the award in court. RED FLAGS RedForce Debt Management yesterday denied the tender is worth N$100 million. An industry player has challenged TransNamib to explain why it chose a request for proposals as the procurement method. Another industry player, Qaurtle Debt Collection, is among those raising red flags. The company yesterday wrote to TransNamib chief executive officer Desmond van Jaarsveld questioning the legitimacy of the process. “We are writing to formally inquire about the procurement process that led to this appointment. “Despite our efforts, we were unable to find any information on the TransNamib website regarding a public invitation or procurement notice for this service.” Qaurtle said it also contacted Namibia’s three major newspapers to verify whether a tender notice had been published, but none had any record of such an advert. Referring to the Public Procurement Act of 2015, Qaurtle said services of this nature must be publicly advertised unless there is a valid reason for using restricted or direct procurement methods. “Should this appointment have been made through a restricted or direct procurement process, we respectfully seek clarity on the criteria applied and why Qaurtle Debt Collection – a well-known agency in the industry and currently contracted by the Namibia Industrial Development Agency (Nida), a state entity with a comparable debt portfolio – was not included or considered,” Qaurtle Debt Collection manager Michael Jantjies said. Qaurtle has expressed frustration, saying it is a tenant of TransNamib but was excluded from the process despite this. TransNamib did not respond to questions sent by The Namibian this week. However, in its written response to Qaurtle yesterday, the company defended its approach, saying it had reached out to firms it was already familiar with. Van Jaarsveld said RedForce was appointed through a request-for-proposal process. “In line with provisions of the Procurement Act, TransNamib developed a shortlist of four firms based on our existing knowledge and information. The shortlisted entities were Redforce Debt Management, Blake and Associates, Revenue Solutions, and Norman Bisset. “Following a comprehensive evaluation of both technical and financial proposals submitted, Redforce Debt Management was appointed for a period of 12 months based on the overall score in accordance with the criteria set out in the request-for-proposal document.” TransNamib has been grappling with financial difficulties for years. In 2022, the government wrote off N$410 million in debt and helped the company secure loans. Last year, TransNamib signed a N$2.6-billion loan agreement with the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA) to fund the purchase of locomotives and multipurpose wagons. ‘ALL TRANSPARENT’ Redforce chief executive Julius Nyamazana yesterday said the company was awarded the contract through a transparent and legally compliant procurement process. “We submitted our proposal in full compliance with the stipulated guidelines and were evaluated based on merit, capacity, experience, and demonstrated THE ability to deliver efficient and effective debt-recovery solutions,” he said. Nyamazana said any claims suggesting RedForce was hand-picked are unfounded and not reflective of the rigorous procurement process undertaken by TransNamib Holdings Ltd. “We remain committed to providing high-quality services that meet the expectations and requirements of our clients while upholding the highest standards of integrity and professionalism,” he said. Nyamazana said the assertion that the tender is worth N$100 million is incorrect. He said the contract is performance-based and commission-driven, meaning compensation is derived as a percentage of successfully recovered debts. “There is no predetermined or guaranteed monetary value attached to the contract; its financial value will depend entirely on the effectiveness of the debt recovery process throughout the contractual period.” The post TransNamib ‘hand-picks’ Redforce for N$100-million debt-collection tender appeared first on The Namibian.

#TransNamib #RedForce #DebtCollection #Namibia #BusinessNews

Meatco, TransNamib a cancer – economists Economists are branding companies like Meatco and TransNamib as “a cancer” draining national resources and stalling economic progress. Minister of finance and social grants management Erica Shafudah on Thursday tabled the 2025/26 national budget, allocating N$100 million to the Meat Corporation of Namibia (Meatco) and N$320 million to national rail services operator TransNamib in yet another effort to keep the struggling entities afloat. An additional N$350 million has been set aside in the country’s contingency fund for unforeseen emergencies. In the 2024/25 financial year, Meatco has been allocated N$212 million to settle contingent liabilities and stabilise its financial position. TransNamib, facing operational challenges, also received N$300 million to support day-to-day operations and address infrastructure needs. However, experts say this continued financial resuscitation is wasteful and unsustainable. “Taxpayers will be wasting their money on this cancer. Use consequences management, prevent rehiring the same individuals, recruit fresh blood, and refrain from assigning names if we want to see results,” independent economic and business researcher Josef Sheehama says. He says funding loss-making state-owned enterprises (SOEs) comes at a high opportunity cost, diverting scarce resources from priority sectors like agriculture and manufacturing, and job-creation and anti-corruption efforts. “Finding resources to support failing SOEs has skewed monetary policy and financial systems, occasionally exacerbating the macroeconomic crisis,” Sheehama warns. Despite their mandate to contribute to national development and revenue generation, most SOEs, including Meatco and TransNamib, have instead become fiscal burdens, surviving on government bailouts while offering the public little in return. The parastatals received the same money from the national budget last year each. However, economist Omu Kakujaha-Matundu questions the efficiency of the allocations, pointing out that past financial support has failed to yield meaningful reforms. “The government commissioned a study looking into Meatco’s finances and sustainability. I’m not sure whether the N$100 million is adequate to achieve the government’s objective of making Meatco a sustainable national meat company,” he says. Meatco incurred substantial losses in 2024, with reports indicating a N$258-million loss. Monthly losses were reported to exceed N$20 million. Liabilities exceed assets by N$133.2 million at the time of an Ombu Capital report. The Ombu Capital report, which analyses Meatco’s situation, concludes that the company is faced with an existential threat. The report says Meatco’s operational existence and the livestock sector, which sustains over 60% of Namibia’s livelihoods, are at risk. Kakujaha-Matundu calls on the government to be transparent about how the funds align with the recommendations of the Ombu report. Kakujaha-Matundu is equally sceptical about TransNamib. “The N$320 million clearly falls short of the close to N$2 billion needed to refurbish the railroad. Little money thrown at big problems often does little to solve them,” he says. He warns that any funds allocated must not be lost to corruption or maladministration. “Let those entities so bailed out try to do more with less,” he says. The post Meatco, TransNamib a cancer – economists appeared first on The Namibian.

#Economics #Namibia #Meatco #TransNamib #NationalBudget

TransNamib is set to transform its operations with a N$2.6-billion loan aimed at acquiring new locomotives, modernising infrastructure, and expanding cargo capacity.

www.railwaysafrica.com/news/transna...

#TransNamib #NamibianRailways #Railway #Rail #Infrastructure #Freight #Logistics #Transport