‘Secret’ N$540m hostel food tender ordered by NNN

President Netumbo Nandi-Ndaitwah had directed the education ministry to use alternative procurement for a N$540-million school hostel food tender, triggering court action.

The Ministry of Education, Innovation, Youth, Sport, Arts and Culture hand-picked the Namibia Training Authority (NTA), which in turn selected several companies – without a public tendering process – to deliver food to schools.

Presidential spokesperson Jonas Mbambo has confirmed that Nandi-Ndaitwah directed the ministry to pursue an alternative procurement arrangement, “with the Namibia Training Authority envisaged as the lead service provider”.

“It was not an instruction to bypass due process or to make an award outside the law,” he says.

Under the proposed arrangement, the Presidency says the NTA would work with other public entities, including Meatco, the Agro-Marketing and Trade Agency, August 26 Holdings Company, the National Youth Service and the Namibian Correctional Service.

The Presidency says the education ministry was required to undertake the necessary processes, including engaging the Ministry of Finance and complying with the Public Procurement Act.

The tender process immediately sparked backlash from tenderpreneurs and triggered legal disputes, with one of the companies now seeking to have the whole tender set aside by the High Court.

‘KEPT SECRET’

Pamo Trading managing director Leon Lombard says the procurement process was kept secret.

The company is questioning how the NTA was selected and whether it could lawfully subcontract private companies.

“I am advised that no provision of the act permits the NTA to supply and deliver food to government school hostels,” he says in court documents.

In a sworn statement filed at the court, Lombard asks the High Court to compel the NTA to reveal how the arrangement was created and whether private companies were subsequently brought into the deal.

In March 2025, Pamo became one of the successful bidders and signed a contract, which was later extended to 30 June this year.

After this, the Central Procurement Board of Namibia (CPBN) advertised another six-month food procurement tender on 27 March with a closing date of 22 April.

The CPBN, however, cancelled this on 16 April, because the procurement process “does not create or achieve the expected outcome”.

Lombard questions how the procurement could have failed to achieve its expected outcome when the closing date had not yet arrived.

Ministry of Finance spokesperson Wilson Shikoto on Monday said the ministry does not need to approve or grant a public entity an exemption to use any procurement method provided for under Section 27 of the Public Procurement Act.

“The education ministry was given an exemption from Section 8(a) and (b), read together with Regulations 2 and Annexure 1 to the public procurement regulations, to conduct a binding process above its threshold, without referring the process to CPBN, to expedite the process,” he said.

The education ministry has declined to comment, saying the matter is before court.

‘SURPRISE’ ARRANGEMENT

On 24 June, the Zambezi Regional Council allegedly wrote to Lombard requesting an interim arrangement for food supplies from 29 June to 6 July, citing the expiry of existing contracts and the need to prevent disruption to hostel meals.

This surprised Lombard, as he was unaware of any long-term procurement arrangements.

On 26 June, Pamo’s lawyers then asked the council to clarify the arrangement, while agreeing to continue supplying food at existing prices until 6 July.

According to Lombard, no response was received. On 29 June, the education ministry informed Pamo that its contract would expire the following day.

Another document was issued on the same day, with the recipient being the NTA.

Pamo argues that, if this goes ahead, the private companies could end up supplying food to government hostels without having competed for the original government contract.

The NTA has not responded to a request for comment.

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