Africa-Press – Namibia. THE decision by the National Housing Enterprise to demolish 10 ‘substandard’ houses constructed at Okakarara last year has led to a N$5 million lawsuit from a private contractor.
The demolished houses form part of a group of 40 houses built under the public-private partnership (PPP) agreement between the National Housing Enterprise (NHE) and Radial Truss Industries.
The company was awarded a N$10 million contract in February 2020 to build 40 houses in seven months. However, the contract came into dispute in September.
“In September 2020, the defendant (NHE) issued an instruction for the demolition of 10 houses that allegedly had problems with the concrete floor levels,” Radial Truss Industries managing director Lamek Kweenda said in court papers filed in the High Court.
Narrating events that led to the lawsuit in court papers submitted in the Windhoek High Court last month, the company claims that the dispute started in May 2020 when they applied for an extension to complete the project.
This period coincided with president Hage Geingob’s declaration of the coronavirus state of emergency that saw the National Assembly pass a resolution lasting six months. Radial Truss Industries said they applied for a three month extension due to Covid-19 restrictions and regulations, which was denied by the NHE.
The company argued that the decision by the NHE to demolish the 10 houses was irresponsible as no specifications and acceptable variations had been stipulated in their contract.
“Any existing level variations in the concrete floors were within the acceptable norms prevalent in the construction industry,” the company said.
Radial Truss Industries said the houses were handed over to the NHE in April this year, however, they claim to have suffered losses of N$1,5 million caused by the demolition and having to rebuild the 10 houses.
Despite the acceptance of the completed work, the defendant failed to issue payment of N$3,3 million. “This amount consists of N$1,4 million for penalties unlawfully imposed and N$1,9 million as the balance payable for performing the works.”
“NHE refused to pay us, claiming penalties, poor quality and apparently we breached the contract without [them] telling us exactly how,” said Kweenda.
“We wrote to them several times, mostly due to Covid, which they rejected.” He added that after his company handed over the houses, the NHE rushed to terminate their contract without issuing the completion certificates.
“But we see them in newspapers saying the same houses that they claimed were of poor quality – are best quality and 60% cheaper,” he said.
Namibia has a housing backlog of 110 000, and statistics showing that at least 900 000 Namibians live in shacks. President Geingob has failed to address the housing problem, despite countless promises.
Deputy minister of urban and rural development Natalia Goagoses last week said the government plans on building 48 000 housing units by 2030. NHE board chairperson Sam Shivute told The Namibian that Radial Truss Industries Pty Ltd did not finish the job.
“The board is not aware of issues surrounding this contract. After consultation, I am informed that the contract was terminated in line with the provisions of the contract due to non-completion of the assignment,” Shivute said.
“Another contractor was appointed which duly completed the project,” he added. He said a decision to defend the case and find an amicable solution will be made once the board has apprised itself of the facts. NHE spokesperson Eric Libongani confirmed the case, but refused to discuss it further.
“We do admit that there is a dispute on the PPP project with that contractor. But we cannot talk much on that at this stage, as the case is in court. We will rather wait until the case is done,” Libongani said. The NHE is being represented by Gaenor Michaels, while Radial Truss Industries Pty Ltd is represented by Nixon Marcus.
For More News And Analysis About Namibia Follow Africa-Press
