The Institute for Public Policy Research (IPPR) has expressed significant concerns regarding the effectiveness of Namibia’s blacklisting provisions within its public procurement framework.
Frederico Links, a Research Associate at IPPR, emphasised the urgent need for comprehensive reforms, highlighting a glaring loophole in the current system that demands immediate attention.
According to Links, a critical deficiency in the regulations allows individuals associated with blacklisted companies to evade penalties and continue bidding for government contracts.
To tackle this pressing issue, Links proposed essential amendments to the existing regulations, stating “while the law and regulations provide for the blacklisting of bidders or suppliers, it has thus far only been applied to companies”.
He added that “the current situation permits the principal officers or beneficial owners of blacklisted companies to establish new entities, thus avoiding the intended consequences of the blacklisting provisions. This undermines the integrity of our public procurement system”.
Under the current regulations, Links explained that the law mandates the public disclosure of the “name and address of a suspended or debarred bidder or supplier,” along with the grounds and duration of the suspension.
“We need to explicitly state in the law that not only companies will be subject to blacklisting, but also the beneficial owners and/or principal officers of those companies should face blacklisting from participating in public procurement processes. This is essential to ensure accountability and transparency in our procurement system,” he asserted.
The issue of blacklisting within Namibia’s procurement sector has garnered significant attention recently, with various reports highlighting its shortcomings.
Links said “the reasons behind the increasing focus on blacklisting are clear. Reports range from high-ranking government officials issuing threats to implicated bidders or suppliers through the media to calls for amending the Public Procurement Act of 2015 to strengthen blacklisting provisions”.
A prominent concern raised in these reports is the lack of accountability for underperforming or transgressing bidders, contractors, or suppliers within public entities. Many executive directors fail to report such entities for debarment or blacklisting to the Review Panel, raising questions about the enforcement of existing regulations.
Links clarified that “It’s important to note that this appears to be a compliance issue among executive officers rather than an inherent flaw in the regulations themselves”.
In response to these compliance challenges, the IPPR reported that a guidance note was distributed to all procuring public entities on 2 March 2023, by the head of the Procurement Policy Unit (PPU).
This note aimed to emphasise the importance of holding bidders, contractors, and suppliers accountable by actively applying debarment and blacklisting provisions as outlined in the law.
On a statistical note, data obtained from the e-Procurement Client System and Annual Procurement Plans revealed that as of 23 August 2023, only about 28% of public entities had submitted their plans to the PPU for the 2023-24 financial year.
Notably, the Ministry of Health’s plan was the most downloaded, closely followed by the Omusati Regional Council’s plan.
As Namibia grapples with concerns regarding the integrity of its procurement practices, Links reiterated the urgency of implementing comprehensive reforms.
His call for amendments to encompass both companies and their key individuals represents a crucial step towards building a more transparent, equitable, and effective procurement landscape in Namibia.
