By: Kelvin Chiringa

The Works ministry has made good on its promise of paying out the contractor, Otesa/CMC Joint Venture, responsible for the Windhoek-Okahandja road construction where workers had downed tools for four months due to not being paid.

The workers had paid works minister John Mutorwa a visit last week protesting against not being paid, after which a promise was made that N$300 million would be made available to carter for other unpaid government projects as well.

They had also expressed their dissatisfaction with the finance ministry in a letter in which their union harshly criticized Ipumbu Shiimi’s leadership style.

Confirmation of the payment was made by the General Secretary of the Metal Allied Namibia Workers Union (MANWU), Justine Jonas, and works ministry spokesperson Julius Ngweda.

“First and foremost, we must appreciate the leadership provided by hon. Mutorwa. I know we were all under pressure, but I think it’s good now that the confirmation of payments is done,” said Jonas.

MANWU said they are now engaging the project management on the way forward, which is when the workers can resume their work.

“Of course, nothing was happening on site, so they have to sit and start planning when they will be on site. So, we are busy engaging management, and we are hoping that next week we will meet,” she said.

Ngweda, however, said the delayed payments have harmed both the contracting company, which has run losses each day workers did not show up for work and the ministry incurred penalties.

It is presently unclear whether, with the four-month downing of tools by the workers, the construction project will meet its deadline.

“The fact of the matter is that the delay in payments means it is a delay in every progress, whether it is the work now based on the contract that we have signed. In terms of performance, that one has also been pushed backwards.

“The good news is that we have finally settled the outstanding figures or amounts that we were supposed to pay to this particular contractor, but this is not the only one. As I have told you before that we had some outstanding invoices,” said Ngweda.

According to the latest Simonis Storm Securities report, the outlook for construction, primarily in Windhoek, remains very bleak.

According to the preliminary national accounts, the construction sector (2 per cent of GDP) contracted by 10.2 per cent y/y in 2021, compared to -11.8 per cent y/y in 2020.

Bank of Namibia forecasts a 2.0 per cent contraction in the construction sector for 2022, followed by a 2.5 per cent growth in 2023.

No new capital projects from the government will be undertaken in the current financial year as per the latest budget.

Growth in the construction sector will therefore have to rely on the private sector.

However, the firm said the private sector, in turn, is faced with rising building material costs, rising interest rates and rising fuel and food prices, which add to operational costs for contractors.

“A number of large projects in Namibia’s main urban centres will provide some growth to the sector. Together with low base effects, the contraction in 2022 might be lower than that experienced in 2021,” said Simonis Storm.

In the meantime, workers manning a part of the Windhoek-Hosea Kutako road also downed their tools this week, demanding that their employer, China Railway Seventh Group, pay them monies that had been deducted for tax.

The workers, who have vowed to go back to work only after their employer make good on their demands, have claimed that while they are registered with the taxman, the tax office has said they have not paid their dues.

A crowd of aggrieved workers mobbed close to Olympia on the project site threatening to march on the company’s offices.

“They told us that we are under China Railway registered for tax and they deducted us, but they did not submit it to that side (taxman). They have not even given us our allowance, and they failed to give us our 10 days’ leave for 2020,” their representative said.

MANWU has also confirmed that China Henan International Company CHICCO employees at the Asab road project (Mariental) are now back to work.

“MANWU Leadership met with employees on Wednesday, 18 May 2022. Employees resumed their duties yesterday, 19 May 2022. A meeting with management is scheduled for 23 May 2022,” Jonas had said.