Staff Reporter
ZHONG Mei Engineering Group, a Chinese-owned company, has recently secured a major contract for road construction in the Erongo Region.
This tender award comes just weeks after the company faced a dispute with the Namibia Revenue Agency (NamRA) regarding an unpaid tax of millions of Namibian dollars.
In a recent update, NamRA has levelled allegations against Zhong Mei Engineering Group, claiming that the company has been involved in tax evasion. As a result, NamRA has taken action and deducted a significant sum of N$30 million from the company. Despite these accusations, it has been revealed that Zhong Mei Engineering Group has secured a substantial contract for the improvement of the road between Usakos and Karibib. The overall value of this project is projected to surpass an impressive N$340 million.
In the letter of intention to award, it was noted that Zhong Mei was awarded the project out of the seven other Chinese companies that were considered for the road project. However, this selection has raised concerns as no local company was included in the shortlist.
From 2015 onwards, the company has been engaged in numerous extensive state projects. These include the enhancement and building of the Rundu abattoir, the construction of main and site buildings, the development of the district road connecting Oshakati to Ongenga, the construction of hostel blocks for the University of Namibia at Neudamm, and the second phase of the ministry of fisheries’ new head office construction.
On Wednesday morning, during the launch of the Central Procurement Board Namibia’s (CPBN) Integrated Strategic Business Plan, Maureen Hinda-Mbuende, the deputy minister of finance and public enterprise, raised concerns about the money from tenders not being circulated within the country to contribute to its economic growth.
The deputy minister pointed out the necessity of examining business models with 100% ownership to address concerns about practices like packaging and repackaging, as well as the existence of briefcase businesses. She emphasized the importance for Namibia to assess the true economic impact and determine the extent to which revenue is being extracted from the country without contributing to the growth of the local economy.
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