N$13m or else… US firm sues govt over cancelled crop tender

Iuze Mukube

The Namibian government is now days away from facing a potential legal dispute over the cancellation of crop monitoring contract.

This follows a decision to scrap a contract regarding crop monitoring purportedly won by US tech firm, 6th Grain Corporation.

The corporation, in a letter seen by this paper from law firm Ileni Velikoshi Inc., is demanding US$855 000 (around N$13 659 263.83) in compensation for work purportedly already done.

For services allegedly rendered, the corporation is demanding an amount of US$480 000, which includes the submission of its inception report, and a further US$125 000 for work it says was 50% completed on the Farmer Survey, Ground Data Collection and Farmer Registry Software.

Additionally, US$250 000 is being demanded for alleged commercial and reputational harm, of which the corporation is claiming that the termination and allegations concerning the legality of the agreement have damaged its credibility, business relationships and standing among existing and prospective clients.

The corporation has given the government until 25 September 2026 to address its claim, failing which the corporation will institute legal proceedings, without further notice.

The demand follows the government’s decision to terminate the Remote Sensing Agricultural Services Agreement entered with 6th Grain Corporation through the Ministry of Agriculture, Fisheries, Water and Land Reform in June 2026.

The notice by the government to terminate the agreement was purportedly on the basis that the corporation failed to comply with mandatory legal prerequisites and is, therefore, invalid from the beginning and unenforceable.

The corporation disputes the government’s position that the agreement was void ab initio and unenforceable.

It argues that it had already performed substantial work before the agreement was terminated.

“You are hereby placed on notice that your decision to terminate the agreement more than one month later is not without legal or financial consequences, being payment for services rendered and any contractual or otherwise recoverable losses,” says the corporation in its legal missive.

The N$40 million contract was intended to use satellite imagery and artificial intelligence to monitor the production of key staple crops, including maize, mahangu, millet, sorghum and wheat.

However, Cabinet allegedly instructed the agriculture ministry to terminate the agreement, following a comprehensive review and the circumstances surrounding the agreement’s conclusion.

The review allegedly established that the agreement did not meet the requisite legal and procedural requirements applicable to contractual arrangements entered on behalf of the government.

–imukube@nepc.com.na

The post N$13m or else… US firm sues govt over cancelled crop tender appeared first on New Era.