{"id":31613,"date":"2022-10-18T18:08:04","date_gmt":"2022-10-18T18:08:04","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities"},"modified":"2022-10-18T18:30:06","modified_gmt":"2022-10-18T18:30:06","slug":"local-companies-forced-into-construction-marriages-with-foreign-entities","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities","title":{"rendered":"Local companies forced into construction ‘marriages’ with foreign entities"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>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.<\/p>\n

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.<\/p>\n

\u201cFinancial 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,\u201d Kirchner said.<\/p>\n

She was discussing challenges faced by the construction sector, including the continued absence of a statutory regulatory body.<\/p>\n

Kirchner blamed poor workmanship and in many cases abandonment of government projects on the lack of regulation in the sector.<\/p>\n

She said a regulatory construction council would help shape the industry and provide a complete understanding of the sector’s capacity.<\/p>\n

She said it would also help to address poverty and unemployment.<\/p>\n

\u201cMany government projects at the moment were or are being abandoned, and some are of poor quality.<\/p>\n

\u201cThe implication of this is that the projects cannot be used in time or for the purpose it has been intended.<\/p>\n

\u201cAnd 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,\u201d Kirchner said.<\/p>\n

Due to the absence of a regulatory body that can police contractors, many contractors get away with murder, she said.<\/p>\n

\u201cAt 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,\u201d she said.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Kirchner has warned that the failure to regulate the construction industry through the establishment of a statutory council has wide-ranging repercussions.<\/p>\n

\u201cThe 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.<\/p>\n

\u201cAnd it will build and develop a register of businesses that operate in the construction sector,\u201d she told Desert Radio.<\/p>\n

Minister of works and transport John Mutorwa told The Namibian the issue of a regulatory council is addressed in the new bill.<\/p>\n

He said he is in support of calls by the local industry to regulate the sector.<\/p>\n

\u201cWhen 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,\u201d he said.<\/p>\n

Mutorwa said he submitted the bill to the Cabinet in January 2021, and it has been approved in principle.<\/p>\n

It has been referred to the Cabinet committee on regulations, he said.<\/p>\n

\u201cAnd 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,\u201d he said.<\/p>\n

FOREIGN CONTRACTORS<\/p>\n

Meanwhile, Kirchner complained about construction tenders being given to foreign contractors despite local capacity.<\/p>\n

\u201cAt 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.<\/p>\n

\u201cMany road projects can be effectively handled by Namibian-owned contractors,\u201d she said.<\/p>\n

Kirchner said this has a negative impact on the local economy as \u201cthere are less jobs for Namibians, less money circulating in the economy, and less money for revenue for our government\u201d.<\/p>\n

She called on the government to support the local industry.<\/p>\n

\u201cThe 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.<\/p>\n

\u201cOur local contractors are really affected by that,\u201d she said.<\/p>\n

About local contractors being hamstrung by financial security when tendering, Mutorwa said: \u201cThe government procures its goods and services through the Public Procurement Board. And how the tenders are allocated … that’s not within my domain.\u201d<\/p>\n

He disagreed with the CIF’s assertions that some contractors are getting away with murder.<\/p>\n

\u201cAt 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.<\/p>\n

\u201cAnd the same if it repeats itself \u2013 the company must be blacklisted,\u201d Mutorwa said.<\/p>\n

\u201cFinancial 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,\u201d Kirchner said.<\/p>\n

She was discussing challenges faced by the construction sector, including the continued absence of a statutory regulatory body.<\/p>\n

Kirchner blamed poor workmanship and in many cases abandonment of government projects on the lack of regulation in the sector.<\/p>\n

She said a regulatory construction council would help shape the industry and provide a complete understanding of the sector’s capacity.<\/p>\n

She said it would also help to address poverty and unemployment.<\/p>\n

\u201cMany government projects at the moment were or are being abandoned, and some are of poor quality.<\/p>\n

\u201cThe implication of this is that the projects cannot be used in time or for the purpose it has been intended.<\/p>\n

\u201cAnd 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,\u201d Kirchner said.<\/p>\n

Due to the absence of a regulatory body that can police contractors, many contractors get away with murder, she said.<\/p>\n

\u201cAt 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,\u201d she said.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Kirchner has warned that the failure to regulate the construction industry through the establishment of a statutory council has wide-ranging repercussions.<\/p>\n

\u201cThe 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.<\/p>\n

\u201cAnd it will build and develop a register of businesses that operate in the construction sector,\u201d she told Desert Radio.<\/p>\n

Minister of works and transport John Mutorwa told The Namibian the issue of a regulatory council is addressed in the new bill.<\/p>\n

He said he is in support of calls by the local industry to regulate the sector.<\/p>\n

\u201cWhen 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,\u201d he said.<\/p>\n

Mutorwa said he submitted the bill to the Cabinet in January 2021, and it has been approved in principle.<\/p>\n

It has been referred to the Cabinet committee on regulations, he said.<\/p>\n

\u201cAnd 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,\u201d he said.<\/p>\n

FOREIGN CONTRACTORS<\/p>\n

Meanwhile, Kirchner complained about construction tenders being given to foreign contractors despite local capacity.<\/p>\n

\u201cAt 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.<\/p>\n

\u201cMany road projects can be effectively handled by Namibian-owned contractors,\u201d she said.<\/p>\n

Kirchner said this has a negative impact on the local economy as \u201cthere are less jobs for Namibians, less money circulating in the economy, and less money for revenue for our government\u201d.<\/p>\n

She called on the government to support the local industry.<\/p>\n

\u201cThe 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.<\/p>\n

\u201cOur local contractors are really affected by that,\u201d she said.<\/p>\n

About local contractors being hamstrung by financial security when tendering, Mutorwa said: \u201cThe government procures its goods and services through the Public Procurement Board. And how the tenders are allocated … that’s not within my domain.\u201d<\/p>\n

He disagreed with the CIF’s assertions that some contractors are getting away with murder.<\/p>\n

\u201cAt 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.<\/p>\n

\u201cAnd the same if it repeats itself \u2013 the company must be blacklisted,\u201d Mutorwa said.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

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 […]<\/p>\n","protected":false},"author":84,"featured_media":31611,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[234,236,233],"class_list":["post-31613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nLocal companies forced into construction 'marriages' with foreign entities - Namibia<\/title>\n<meta name=\"description\" content=\"CHIEF executive officer of the Construction Industries Federation of Namibia (CIF) Barbel Kirchner says local contractor ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Local companies forced into construction 'marriages' with foreign entities\" \/>\n<meta property=\"og:description\" content=\"CHIEF executive officer of the Construction Industries Federation of Namibia (CIF) Barbel Kirchner says local contractor ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-18T18:08:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-10-18T18:30:06+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/10\/postQueueImg_19-634ef07ab3658.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"479\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Local companies forced into construction ‘marriages’ with foreign entities\",\"datePublished\":\"2022-10-18T18:08:04+00:00\",\"dateModified\":\"2022-10-18T18:30:06+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities\"},\"wordCount\":1605,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/10\/postQueueImg_19-634ef07ab3658.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/local-companies-forced-into-construction-marriages-with-foreign-entities\",\"name\":\"Local companies forced into construction 'marriages' with foreign entities - 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