Pamo Trading: Namibia NTA Hostel Food Tender Lawsuit Filed Over N$540m Deal

• President Netumbo Nandi-Ndaitwah directed an alternative procurement method for a N$540 million school hostel food tender.
• The Ministry of Education hand-picked the Namibia Training Authority (NTA), which then selected companies without a public tender process.
• Pamo Trading has launched a High Court tender application, questioning the NTA's selection and its legal authority to subcontract private entities.
• The Ministry of Finance confirmed an exemption was granted to the education ministry under the Public Procurement Act to expedite the process.
• The Central Procurement Board of Namibia cancelled a separate six-month food tender, citing it would not achieve the expected outcome.

The legal challenge specifically questions the Namibia Training Authority's selection and its statutory authority to subcontract private entities for such a significant public service.

A significant N$540 million Namibia school food tender dispute has erupted following a directive from President Netumbo Nandi-Ndaitwah. The President instructed the education ministry to pursue an alternative procurement method for school hostel food supplies, leading to the Ministry of Education, Innovation, Youth, Sport, Arts and Culture directly appointing the Namibia Training Authority (NTA). Subsequently, the NTA proceeded to select several private companies to deliver food to schools, bypassing the standard public tendering process.

Presidential spokesperson Jonas Mbambo confirmed that President Nandi-Ndaitwah had indeed directed the ministry towards an alternative procurement arrangement, with the Namibia Training Authority envisaged as the primary service provider. However, Mbambo clarified that this was not intended as an instruction to circumvent due process or to make an award outside legal parameters. The proposed arrangement, according to the Presidency, envisioned the NTA collaborating with other public entities, including Meatco, the Agro-Marketing and Trade Agency, August 26 Holdings Company, the National Youth Service, and the Namibian Correctional Service. The education ministry was expected to engage the Ministry of Finance and adhere to the Public Procurement Act.

This procurement approach immediately drew criticism and ignited legal challenges, including a High Court tender application filed by Pamo Trading. Leon Lombard, the managing director of Pamo Trading, asserted that the entire procurement process was shrouded in secrecy. His company is now seeking to have the N$540m Namibia NTA hostel food tender lawsuit set aside by the High Court, raising fundamental questions about the legality and transparency of the process.

Pamo Trading's High Court tender application specifically targets the Namibia Training Authority procurement legality, questioning the basis for its selection and its legal capacity to subcontract private companies for food supply. In court documents, Lombard stated that he is advised no provision within the Public Procurement Act permits the NTA to supply and deliver food to government school hostels. His sworn statement requests the High Court to compel the NTA to disclose how this arrangement was established and whether private entities were subsequently integrated into the deal.

Addressing the procedural aspects, Ministry of Finance spokesperson Wilson Shikoto clarified that the ministry's approval is not required for a public entity to utilize any procurement method outlined under Section 27 of the Public Procurement Act. He confirmed that the education ministry received an exemption from Section 8(a) and (b), read in conjunction with Regulations 2 and Annexure 1 of the public procurement regulations. This exemption was granted to enable the ministry to conduct a binding process exceeding its financial threshold without referral to the Central Procurement Board of Namibia (CPBN), primarily to expedite the procurement.

Further complicating the landscape, the Central Procurement Board Namibia tender cancellation occurred on April 16 for a separate six-month food procurement tender that the CPBN had advertised on March 27, with a closing date of April 22. The CPBN stated the cancellation was because the procurement process “does not create or achieve the expected outcome.” Lombard questioned how the procurement could have failed to achieve its expected outcome when the closing date had not yet arrived, highlighting inconsistencies in the process.

Amidst the ongoing legal challenge, operational uncertainties began to emerge regarding food supplies to hostels. On June 24, the Zambezi Regional Council reportedly sent a letter to Lombard, requesting an interim arrangement for food supplies from June 29 to July 6. The council cited the impending expiry of existing contracts and the critical need to prevent any disruption to hostel meals as reasons for this urgent request.

Lombard expressed surprise at this request, indicating he was unaware of any long-term procurement arrangements that would necessitate such an interim measure. In response, on June 26, Pamo Trading's legal representatives contacted the Zambezi Regional Council, seeking clarification on the nature of the arrangement. While awaiting a response, Pamo agreed to continue supplying food at existing prices until July 6 to ensure continuity of service.

However, according to Lombard, no clarification was received from the council. Separately, on June 29, the education ministry informed Pamo of developments, though the full context of this communication remains undisclosed. Pamo Trading had previously been a successful bidder in March 2025, signing a contract that was later extended until June 30 of the current year, underscoring its prior involvement in school food provision.

This Namibia NTA hostel food tender lawsuit underscores the significant legal risks inherent in non-compliant public procurement processes within the country, even when executive directives are involved. The Nandi-Ndaitwah procurement directive challenge highlights the potential for judicial review when procurement procedures deviate from established legal frameworks. The case serves as a critical reminder for legal professionals advising clients on public tenders and for compliance officers within public entities to strictly interpret the Public Procurement Act.

Specifically, the dispute brings into sharp focus the stringent requirements concerning exemptions and direct appointments under the Act. The questions raised about the Namibia Training Authority procurement legality and the Central Procurement Board Namibia tender cancellation emphasize that adherence to statutory provisions is paramount. The ongoing legal battle illustrates that even with intentions to expedite processes, any perceived bypass of due process can lead to costly and protracted legal challenges, ultimately impacting public service delivery.

This case highlights the significant legal risks associated with non-compliant public procurement processes in Namibia, even when executive directives are involved. Lawyers advising clients on public tenders or compliance officers within public entities should note the potential for judicial review and the strict interpretation of the Public Procurement Act, particularly concerning exemptions and direct appointments.

Source: Original reporting via local sources