
TransNamib Provides Clarity on Baseless Allegations Regarding Procurement Processes and Funding Allocation
WINDHOEK, 03 February 2025: TransNamib takes cognisance of the recent baseless allegations made by political figures and non-factual reporting by some media houses and would like to respond as follows to these very serious allegations:
1. Direct Procurement and the Role of Wabtec (formerly General Electric)
TransNamib has been transparent in the media in terms of the organisation’s challenges with its ageing and outdated fleet, necessitating the procurement of new rolling stock to transform the business.
Over the last 50 years, TransNamib’s fleet has predominantly featured General Electric/Wabtec locomotives, which have proven to be exceptionally reliable in Namibia’s harsh environmental conditions. These units have surpassed their typical 25-year service life, with some still running after more than 50 years of operation, continuing to serve currently as the backbone of TransNamib’s fleet. In contrast, locomotives from other brands that TransNamib acquired in the past are all not operational.
In light of these advantages, the decision to standardise the fleet with General Electric/Wabtec locomotives was made by TransNamib. Standardisation ensures operational efficiency, reduced maintenance costs, improved reliability, and faster service, amongst other benefits.
Sourcing directly from the manufacturer will eliminate the need for a third-party agent and will facilitate the building of a direct relationship with the manufacturer.
The TransNamib Board approved the standardisation initiative in 2022, and subsequent approvals were granted by lending institutions and the Ministry of Finance and Public Enterprises.
The procurement process which is fully managed by the Central Procurement Board of Namibia (CPBN), with transparency and fairness ensured through rigorous oversight, including a review by an independent third-party technical advisor appointed by the lending institutions.
The procurement process which is fully managed by the Central Procurement Board of Namibia (CPBN), with transparency and fairness ensured through rigorous oversight, including a review by an independent third-party technical advisor appointed by the lending institutions.
It is important to note that the direct procurement process is being independently managed by CPBN, who approved and commenced with the bidding process on the 14th October 2024. This is after TransNamib successfully met all the conditions to access the funding on 30 September 2024.
CPBN is the only authorised entity allowed to engage with the manufacturer. Equally important to note is that once CPBN has finalised the procurement process, the lending institutions will also review and verify to ensure that the process was competitive.
2.Funding from the Development Bank of Southern Africa and Development Bank of Namibia (DBSA and DBN)
TransNamib has secured vital funding from the Development Bank of Southern Africa and Development Bank of Namibia, which will be allocated according to the company’s Integrated Strategic Business Plan for the next five years. The funds will be used for necessary rolling stock replacement and infrastructure upgrades, with a focus on revenue generation to ensure long-term financial sustainability and repayment to lending institutions.
It is important to note that TransNamib will not receive the funding directly. Disbursements related to the funding will be made directly to suppliers.
3.Response to Allegations by Job Amupanda
Recent claims made by Job Amupanda alleging that the procurement process is a “last-minute corrupt deal” are unfounded and malicious. As outlined above, the process was initiated in 2022 and the eventual procurement of the locomotives are following all necessary steps in accordance with the Public Procurement Act. TransNamib itself is not the procuring agency – CPBN, which has reviewed and approved all procurement, is the official body managing this process.
Furthermore, the involvement of the Ministry of Finance and Public Enterprises, the CPBN, and the lender ensures that the procurement process is transparent and free of corruption. Therefore, Amupanda’s assertions are unsubstantiated and false.
4.Transparency and Measures to Prevent Misuse of Funds
To ensure transparency and prevent misuse of funds, the Public Procurement Act mandates that all procurement items above the public entity’s threshold be managed by the CPBN.
In addition, for procurement of items related to the remanufacturing of the outdated locomotives and purchasing of wagons and tankers, the CPBN will conduct open international bidding, ensuring that all qualified suppliers have the opportunity to participate.
Rigorous measures are in place to guarantee that the procurement process is transparent, fair, and fully compliant with legal requirements. We encourage the media and any interested party to contact CPBN directly as the owners of the procurement process with any follow up concerns or queries.
Conclusion
TransNamib remains committed to transparency, fairness, and the long-term sustainability of rail in Namibia. To this effect, TransNamib held a media briefing on the 5th December 2024 where we provided a detailed breakdown and presentation of how the funding will be utilised. The company looks forward to continuing its vital role in supporting Namibia’s economic growth through efficient and reliable transportation solutions.
Media Contact: Abigail Raubenheimer Manager: