Wednesday 29 January 2014

Namibia: new NTB office costs N$44m

A local quantity surveyors’ firm last week admitted that it invoiced the Namibia Tourism Board (NTB) millions of dollars for the construction of the offices in Windhoek without any building plans.
Paul Grobbelaar of Blokker, Jacobs & Kuschke quantity surveyors told The Namibian that they invoiced NTB N$44 million in July 2011, and then revised it upwards to N$66 million within a few weeks after the client had provided a plan.

Although Grobbelaar initially did not want to respond to The Namibian’s questions saying “it’s the client’s stuff”, and needed authorisation from NTB, he later said the initial cost was “a very early estimate” before building plans had been available.

“Then plans were drawn up with all the needs of the client,” Grobbelaar said.

The Namibian could not, however, confirm whether the job given to Blokker, Jacobs & Kuschke was tendered for, and whether there were other companies which lost out.

A local architect who spoke on condition of anonymity said it is suspicious for the initial cost to have been so exorbitant without any building plans. Moreover, she said, the quantity surveyors need to come up with a proper explanation as to why there was such a drastic surge in costs. Blokker, Jacobs & Kuschke’s initial quotation was N$43 613 150 on 13 July 2011, but shot up to N$65 790 010, a month later on 22 August 2011.

Among the charges were professional fees, which were initially N$5 million, but went to N$8 million excluding Value Added Tax (VAT), while specialist services rose from just over N$10 million to almost N$17 million within a month.

The basement was initially estimated to cost N$1,5 million but shot up to N$1,7 million, and estimate cost for general builder’s work rose from N$16 million to N$24 million, while estimate for ground floor were set at N$3,2 million but went up to N$6,3 million a month later.

NTB spokesperson Maggy Mbako had earlier denied that the documents, copies of which are in possession of The Namibian, were quotations.

Responding to written questions, she said “the figures in question were estimates as per bill of [the] quantity surveyor” and that the costs “were updated periodically as the building design changed to meet the NTB’s requirements”.

“These updates were meant to simply ensure that NTB received the most accurate financial information as to the anticipated final cost of the project. As the scope of work increased substantially during this period, and the QS received more detailed information from NTB, and the other consultants as to the anticipated design of the building, the figures were adjusted to reflect these changes,” Mbako said.

This, she said, was nothing out of the ordinary.

“This is standard in building projects management process.”

Refusing to state how much money has been spent so far on the building that is currently being erected, she said: “Expenditure is within budget.”

The NTB has had enough controversy during the last few weeks, with the Minister of Environment and Tourism, Uahekua Herunga, confirming that he has ordered a high-level investigation into alleged unfair labour practices at the institution, following a letter written to him by some NTB senior managers.

In a strongly worded petition to the then Minister of Environment and Tourism, Netumbo Nandi-Ndaitwah, two years ago, workers were united in their quest: investigate the NTB chief executive officer, Digu //Naobeb, and his board.

In fact, they called for //Naobeb’s head in that petition.

Workers charged that “there is no industrial peace and harmony in the institution. There is no compliance with internal corporate policies such as recruitment and selection, procurement and affirmative action”. According to the petition, “favouritism within the organisation is rampant”.

They took issue with the board allegedly for giving all //Naobeb’s recommendations the green light without “ever taking the opportunity to investigate whether the recommendations made are in the best interest of the NTB, the country and tourism in general”.

No comments:

Post a Comment