GROOTFONTEIN’S N$10M STINK

… Court gives municipality until October 22 to file response

By Kaundjire Humbu

The Grootfontein Municipality is facing a N$10.2 million legal bill from an architectural firm, piling fresh financial pressure on a local authority already under scrutiny over allegations of corruption, questionable procurement and maladministration.

Gamal Rifai Architects has taken the council for the municipality of Grootfontein to the high court, demanding N$10,276,815.06 for professional services it says it provided but was never paid for.

The multimillion-dollar claim comprises N$6,506,584.32 in unpaid invoices and N$3,770,231.27 in penalty interest.

The case stems from a three-year architectural consulting contract awarded to Gamal Rifai Architects after the municipality invited professionals to bid in December 2020.

The firm says it was selected for the tender in May 2021 and formally accepted the award on 02 June 2021.

The agreement was intended to run until June 2024.

Under the agreement, the architects were expected to provide a wide range of services, including architectural designs, structural, mechanical and electrical engineering drawings, project management, supervision, bills of quantities and procurement documents.

The municipality then instructed the firm to work on four projects, which includes the redesign of the council chamber and boardroom at the civic building, the redesign of the civic building, a new open market and a new fire station.

The architects claim they carried out the work and produced detailed plans, working drawings and bills of quantities.

They also brought in specialised consultants, including quantity surveyors and engineers, to assist with the projects.

However, the work allegedly came with a hefty unpaid bill.

Gamal Rifai Architects submitted four invoices to the municipality: N$2,779,555.63, N$1,720,190.52, N$1,919,080.09 and N$87,758.08 in disbursements.

The invoices totalled N$6,506,584.32.

According to the court papers, the municipality failed or refused to settle the invoices despite the architects repeatedly demanding payment.

The firm says it made several attempts to recover the money, including verbal and written demands.

In December 2023, its lawyers sent another formal demand, but the municipality allegedly still did not pay.

The amount then ballooned.

The architects claim that a contractual penalty-interest provision resulted in N$3.77 million in interest accumulating on the unpaid amounts by 29 February 2024.

The firm is asking the high court to order the municipality to pay the full amount, together with interest at 20 percent per annum and legal costs.

Meanwhile, in a draft order issued by the high court on 08 October 2026, Judge Pickering ordered the municipality to file, by 12h00 on 22 October 2026, a properly adopted council resolution authorising it to oppose the action brought by Gamal Rifai Architects.

The resolution must also ratify all steps already taken in the case, including the appointment of its legal practitioners, its notice of intention to defend and its plea.

The municipality must also submit the notice convening the council meeting, proof that it was delivered to every council member, certified minutes or an extract of the meeting and the attendance register.

Failure to comply with the order could have serious consequences. The municipality’s notice of intention to defend and its plea will be struck out, while Gamal Rifai Architects may then set the matter down for default judgment.

The court further ordered the municipality to pay the architects’ wasted legal costs arising from its failure to properly authorise the opposition of the action, including counsel’s reservation fees for 8 and 9 October 2026.

The matter was postponed for continued trial, subject to the municipality complying with the order.

The latest order does not determine the architects’ N$10.2 million claim on its merits. However, it places the municipality under a firm deadline to regularise its authority to defend the case, adding another layer to a dispute that has already raised questions about the local authority’s financial management and adminsitration.

A senior municipal employee explained that the ACC’s referral has placed the municipality under increased scrutiny. They added that the architectural dispute is separate and is already before the High Court.

According to them, at its core, the lawsuit raises a significant question about the municipality’s financial obligations.

“How did a contract for professional services result in an unpaid bill of more than N$6.5 million, which the architects now say has grown to over N$10.2 million?” they questioned.

“The lawsuit comes at a particularly difficult time for the Grootfontein local authority, which has recently been facing questions over its administration.”

The Anti-Corruption Commission (ACC) has confirmed that allegations of corruption and maladministration involving the municipality were referred to the ministry of urban and rural development for an internal investigation.

ACC deputy director Erna Van der Merwe recently toold Confidente that acting former director general Paulus Noa had directed the ministry to investigate allegations concerning employment practices, tenders, procurement, alleged conflicts of interest and the treatment of municipal workers.

The allegations paint a troubled picture of an institution where questions have been raised about how public resources are managed and how decisions are made.

Sources have alleged favouritism in employment, claiming that friends, relatives and former associates of senior officials have been brought into the municipality.

There are also allegations that temporary employment contracts have been used as a route to permanent positions for favoured individuals.

Tender processes have come under similar scrutiny, with sources alleging that municipal contracts are repeatedly awarded to people within the same social circles.

One source alleged that tenders were being awarded to the same “WhatsApp groups” of friends.

The construction of a fire station was cited as an example, with an allegation that the tender was awarded to a person who was allegedly a friend of the chairperson of the procurement board.

Questions have also been raised over refuse collection, municipal vehicles, recruitment practices and alleged conflicts of interest.

Sources further alleged senior tribalism in appointments and claimed that people seeking employment were sometimes expected to rely on personal connections or pay money to secure jobs.

Grootfontein mayor Moritz Geingob has for the past two weeks not responded to questions on both matters.

The post GROOTFONTEIN’S N$10M STINK appeared first on Confidente.