Africa-Press – Namibia. A VISIT to a failed Swakopmund low-cost housing project by vice-president Nangolo Mbumba yesterday has put the destructive impact of tenderpreneurship on public service delivery in the spotlight.
Mbumba was accompanied by Erongo governor Neville Andre, chairperson of the Erongo Regional Council Ciske Smith-Howard, chief regional officer Habate Doëses, and the chief executive officer of the Swakopmund municipality, Archie Benjamin.
Smith-Howard yesterday attributed the project’s failure to tenderpreneurship. She said the majority of funding ends up in the pockets of individuals, leading to projects falling apart or failing.
“Tenders must be allocated to entities which have experience in the field, which are serious about delivery, and which are not only profit orientated,” she said.
She said a maximum of a 10% profit margin must be allowed for low-cost housing projects, and bidders must only be remunerated when progress is made with the project.
That means the contractor cannot receive payment as seed money to start the project, but should be paid as the project progresses. This is standard in the private sector, and should also apply to low-cost housing projects, she said.
Howard-Smith said that the relevant authorities at low-cost housing projects must do more to manage the projects transparently and ensure funds are spent correctly and in time. Benjamin said a total of 291 houses are incomplete and several options are considered for funding to continue with construction.
Although some of the houses have been vandalised and some have suffered superficial damage caused by the wind among things, Benjamin said the brick-and-mortar structures of the houses are strong and intact, and only finishings such as doors, windows, ceilings, paint and others are needed to complete the structures. The low-cost housing project grinded to a halt when funds ran dry a few years ago.
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