Africa-Press – Namibia. CHIEF executive officer of the Construction Industries Federation of Namibia (CIF) Barbel Kirchner says local contractors are forced into joint ventures with foreign companies, because they cannot provide financial security.
CHIEF executive officer of the Construction Industries Federation of Namibia (CIF) Barbel Kirchner says local contractors are forced into joint ventures with foreign companies, because they cannot provide financial security.
“Financial prequalifications are so steep that our own contractors cannot participate unless they are in a joint venture with foreign contractors, despite having the technical capacity,” Kirchner said.
She was discussing challenges faced by the construction sector, including the continued absence of a statutory regulatory body.
Kirchner blamed poor workmanship and in many cases abandonment of government projects on the lack of regulation in the sector.
She said a regulatory construction council would help shape the industry and provide a complete understanding of the sector’s capacity.
She said it would also help to address poverty and unemployment.
“Many government projects at the moment were or are being abandoned, and some are of poor quality.
“The implication of this is that the projects cannot be used in time or for the purpose it has been intended.
“And as such, the money has been spent, but there is no return. And the needs of the society are not really met, and we do not have enough schools or hospitals,” Kirchner said.
Due to the absence of a regulatory body that can police contractors, many contractors get away with murder, she said.
“At the moment, on government projects there are no repercussions for contractors that do not deliver. They get away with it and can simply establish another business,” she said.
Kirchner was elaborating on Desert Radio after bemoaning in a statement released last week that the Construction Industries Federation of Namibia has been lobbying the government to establish a statutory council through an act of parliament to regulate the industry since 2006.
The industry is frustrated by the slow pace of promulgating the Namibia planning and construction bill, which is yet to return to the parliament after it was initially rejected in 2010.
Kirchner has warned that the failure to regulate the construction industry through the establishment of a statutory council has wide-ranging repercussions.
“The construction council will have the mandate to monitor and police the entire industry. The council will have that power as it is a statutory body established as a result of an act of parliament.
“And it will build and develop a register of businesses that operate in the construction sector,” she told Desert Radio.
Minister of works and transport John Mutorwa told The Namibian the issue of a regulatory council is addressed in the new bill.
He said he is in support of calls by the local industry to regulate the sector.
“When colleagues from the construction industry complained about the apparent delay in the finalisation of the Namibia planning and construction bill, they were genuine in their complaints,” he said.
Mutorwa said he submitted the bill to the Cabinet in January 2021, and it has been approved in principle.
It has been referred to the Cabinet committee on regulations, he said.
“And that bill is still with the Cabinet committee on legislation. So our hope, even here at the ministry, was that we can still get the bill through the parliament this year. But I do not know,” he said.
FOREIGN CONTRACTORS
Meanwhile, Kirchner complained about construction tenders being given to foreign contractors despite local capacity.
“At the same time, you will also have some foreign contractors that are involved in our sector. In principle that will not be a problem, as long they operate in a space where there is absolutely no local capacity.
“Many road projects can be effectively handled by Namibian-owned contractors,” she said.
Kirchner said this has a negative impact on the local economy as “there are less jobs for Namibians, less money circulating in the economy, and less money for revenue for our government”.
She called on the government to support the local industry.
“The construction sector can be a catalyst for growth and can help shape the economic landscape. But we have seen, obviously, capital projects that could benefit our industry are largely awarded to foreign businesses.
“Our local contractors are really affected by that,” she said.
About local contractors being hamstrung by financial security when tendering, Mutorwa said: “The government procures its goods and services through the Public Procurement Board. And how the tenders are allocated … that’s not within my domain.”
He disagreed with the CIF’s assertions that some contractors are getting away with murder.
“At policy level, this is what we are advocating, and we are speaking out publicly that if a company that has been awarded a tender fails to complete, that tender must be taken away from that in accordance with the contractual agreement.
“And the same if it repeats itself – the company must be blacklisted,” Mutorwa said.
“Financial prequalifications are so steep that our own contractors cannot participate unless they are in a joint venture with foreign contractors, despite having the technical capacity,” Kirchner said.
She was discussing challenges faced by the construction sector, including the continued absence of a statutory regulatory body.
Kirchner blamed poor workmanship and in many cases abandonment of government projects on the lack of regulation in the sector.
She said a regulatory construction council would help shape the industry and provide a complete understanding of the sector’s capacity.
She said it would also help to address poverty and unemployment.
“Many government projects at the moment were or are being abandoned, and some are of poor quality.
“The implication of this is that the projects cannot be used in time or for the purpose it has been intended.
“And as such, the money has been spent, but there is no return. And the needs of the society are not really met, and we do not have enough schools or hospitals,” Kirchner said.
Due to the absence of a regulatory body that can police contractors, many contractors get away with murder, she said.
“At the moment, on government projects there are no repercussions for contractors that do not deliver. They get away with it and can simply establish another business,” she said.
Kirchner was elaborating on Desert Radio after bemoaning in a statement released last week that the Construction Industries Federation of Namibia has been lobbying the government to establish a statutory council through an act of parliament to regulate the industry since 2006.
The industry is frustrated by the slow pace of promulgating the Namibia planning and construction bill, which is yet to return to the parliament after it was initially rejected in 2010.
Kirchner has warned that the failure to regulate the construction industry through the establishment of a statutory council has wide-ranging repercussions.
“The construction council will have the mandate to monitor and police the entire industry. The council will have that power as it is a statutory body established as a result of an act of parliament.
“And it will build and develop a register of businesses that operate in the construction sector,” she told Desert Radio.
Minister of works and transport John Mutorwa told The Namibian the issue of a regulatory council is addressed in the new bill.
He said he is in support of calls by the local industry to regulate the sector.
“When colleagues from the construction industry complained about the apparent delay in the finalisation of the Namibia planning and construction bill, they were genuine in their complaints,” he said.
Mutorwa said he submitted the bill to the Cabinet in January 2021, and it has been approved in principle.
It has been referred to the Cabinet committee on regulations, he said.
“And that bill is still with the Cabinet committee on legislation. So our hope, even here at the ministry, was that we can still get the bill through the parliament this year. But I do not know,” he said.
FOREIGN CONTRACTORS
Meanwhile, Kirchner complained about construction tenders being given to foreign contractors despite local capacity.
“At the same time, you will also have some foreign contractors that are involved in our sector. In principle that will not be a problem, as long they operate in a space where there is absolutely no local capacity.
“Many road projects can be effectively handled by Namibian-owned contractors,” she said.
Kirchner said this has a negative impact on the local economy as “there are less jobs for Namibians, less money circulating in the economy, and less money for revenue for our government”.
She called on the government to support the local industry.
“The construction sector can be a catalyst for growth and can help shape the economic landscape. But we have seen, obviously, capital projects that could benefit our industry are largely awarded to foreign businesses.
“Our local contractors are really affected by that,” she said.
About local contractors being hamstrung by financial security when tendering, Mutorwa said: “The government procures its goods and services through the Public Procurement Board. And how the tenders are allocated … that’s not within my domain.”
He disagreed with the CIF’s assertions that some contractors are getting away with murder.
“At policy level, this is what we are advocating, and we are speaking out publicly that if a company that has been awarded a tender fails to complete, that tender must be taken away from that in accordance with the contractual agreement.
“And the same if it repeats itself – the company must be blacklisted,” Mutorwa said.
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