Tax-dodging firm secures major road project

Namibia’s Ministry of Finance & Public Enterprises’ review panel has supported the decision of the Roads Authority (RA) to award a Chinese company accused of failing to pay tax a N$343m (US$18m) road tender. The Namibian reports that the panel said the tender would go to Zhong Mei Engineering Group despite it being accused of circumventing tender requirements and not being in possession of a valid tax good standing certificate issued by the Namibia Revenue Authority (Namra). The RA contracted the firm to build the road between Usakos and Karibib. ‘In terms of Section 60 (a) of the Public Procurement Act, through a majority decision the review panel hereby dismissed the review application and hereby confirms the decision of the Road Authority ... ,’ the review panel’s order reads. China Railway Seventh Group objected to the review panel’s decision and insisted it should ‘correctly apply the evaluation criteria as per its rules’. Between 2013 and 2018, Zhong Mei allegedly paid no tax, despite having made N$1bn (US$52.7m) from government projects.

Full report in The Namibian