Interference of N$82m Bipa tenderout of public procurement procedures

Stefanus Nashama

The official opposition, Popular Democratic Movement (PDM) says the involvement of the Bank of Namibia and the Ministry of Finance and Public Enterprise in the implementation of an N$82 million digital registration system by the Business and Intellectual Property Authority of Namibia (BIPA) is out of public procurement procedures.

The party further expressed its concern over the revelations that the cost of implementing the digital registration system has ballooned to close to N$100 million from the N$20 million that was originally budgeted by BIPA.

According to a statement issued by PDM Secretary General, Manuel Ngaringombe, the party is bothered by the interference of officials from the Ministry of Finance and Public Enterprises, the Financial Intelligence Centre, and the Bank of Namibia that are forcing BIPA to handpick a New Zealand company, Foster Moore, to implement the new system.

This week, it was reported in the media that the Bank of Namibia is compelling BIPA to introduce the system, amongst others, to help trace individuals involved in financial crimes.

However, leaked documents show that some government officials are skeptical about the estimated cost of this project having ballooned from N$20 million to N$82 million, according to a media report.

Ngaringombe yesterday stated that PDM strongly urges the Central Procurement Board of Namibia to take the lead in overseeing the procurement for the digital business registration system.

He stressed that the opportunity to bid for the tender should be given to qualifying Namibian companies to promote local participation and support the growth of domestic industries.

“While we recognize the importance of BIPA implementing a modern digital business registration system, it is crucial that the procurement process adheres to legal requirements and ensures the responsible and efficient use of public funds,” Ngaringombe explained.

It is alleged that government officials have approached the New Zealand company, Foster Moore to carry out the task of implementing the new N$82 million digital system.

In light of this, Ngaringombe called for transparency, fairness, and accountability in the allocation of public resources, particularly in the implementation of the new system.

He emphasized that the significance of sound financial administration and adherence to ethical standards in the public procurement process should remain considered in the implementation of the modern N$82 system.

“PDM advocates for fair competition, equal opportunities, and the utilization of local expertise whenever possible,” he stated.

A news media report has it that, Foster Moore submitted a proposal to BIPA ON 23 March 2023 to provide the system at the cost of N$82.

Media reports further revealed that officials from BIPA, the Master of the High Court, and the Financial Intelligence Centre have approached Foster Moore to seek assistance with the implementation of the new system.

Last year, the Mobile Telecommunication Company (MTC) submitted a proposal to BIPA to implement the system for N$5,6 million.

Another Namibian entity by the name of Green Enterprise Solutions made its proposal to carry out the task for N415,8 million, while Riqueza Digital Era Consultants proposed to do the job for N$10,9 million.

Ngaringombe yesterday said accountability and transparency should prevail in all government actions, particularly in matters involving public procurement, to ensure the trust and confidence of the Namibian people.
“How can we trust the Bank of Namibia and the Financial Intelligence Centre to gather and analyze financial data to identify suspicious transactions and patterns that may indicate corruption when some of their officials are said to be involved in questionable dealings?” he questioned.

Meanwhile, BIPA’s Communications Director Ockert Jansen said BIPA has not made any agreements with Foster Moore or any other registry provider.

He also explained that the current business registration platform is out dated and no longer able to support the cease of doing business in the country.
“The N$20 million budgeted for integrated business registration is bound to increase due to additional requirements, such as the beneficial ownership register,” Jansen stressed.

BIPA has also asked permission from the Ministry of Finance and Public Enterprise to invite companies to bid, he said.

He stated that Foster Moore is a recognized and known global registry provider.

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