Companies suspected of colluding to manipulate government tenders face increased scrutiny after the Namibian Competition Commission (NaCC) and Central Procurement Board of Namibia (CPBN) agreed to share information and strengthen detection of anti-competitive practices in public procurement.
The agreement targets practices including bid rigging, price fixing, market allocation, abuse of dominance and the drafting of technical specifications designed to favour particular bidders.
Under a newly signed Memorandum of Understanding (MoU), complaints involving suspected restrictive practices in procurement can be shared between the two institutions, subject to legal requirements.
CPBN Chief Executive Officer Idi Itope said collusion between bidders can undermine competition and the ability of the public procurement system to deliver value for taxpayers.
“Where bidders collude, where prices are fixed, where markets are quietly carved up between a handful of dominant players, or where bid technical specifications are designed to favour a chosen few, these are not merely procurement issues. They are competition violations,” Itope said.
The partnership will see CPBN combine its oversight of public procurement processes with NaCC’s competition enforcement mandate, allowing the institutions to identify potentially anti-competitive behaviour in tenders.
NaCC Chief Executive Officer and Secretary to the Commission Vitalis Ndalikokule said the agreement implements a requirement under the National Competition Policy 2020–2025 to strengthen competition in public procurement.
“This MoU is also a direct deliverable of the National Competition Policy 2020–2025, which specifically calls for the development of a cooperation mechanism between the Namibian Competition Commission and the public procurement authority to enhance competition in public tenders and reduce bid-rigging practices,” Ndalikokule said.
The institutions will also jointly analyse supplier behaviour and market dynamics, exchange information and intelligence within the law, and undertake research into practices that could undermine competition in government procurement.
Joint training, secondments and knowledge-sharing programmes will be used to strengthen officials’ ability to identify signs of collusion during procurement processes.
A Joint Working Committee will coordinate the partnership, monitor implementation and identify emerging procurement and competition risks.
Itope said procurement legislation alone cannot adequately address collusive behaviour, making cooperation with the competition regulator necessary.
“Where the Board opens the door to fair competition among bidders, the Commission ensures that door remains open, that no cartel, no collusive arrangement, and no abuse of market dominance quietly closes it again,” he said.
The two institutions said their cooperation would not compromise their statutory independence, with each continuing to exercise its respective powers under the law.
