Government halts all new tenders
16 Sep 2016 10:10am
WINDHOEK, 16 SEP (NAMPA) The Ministry of Finance has directed that no new tender contracts be awarded until the national budget is reviewed.
The mid-year budget review is expected to take place in October this year.
The cancellation follows the recent downgrade of Namibias economic outlook from stable to negative by the Fitch credit ratings agency.
Minister of Finance Calle Schlettwein issued a directive to the Tender Board of Namibia on Thursday saying the awarding of new tender contracts and feasibility studies/surveys for new tenders should be halted.
The measures are to be implemented with immediate effect.
The directive said in line with the budget policy stance for the 2016/17 mid-year budget review and the 2016/17 -2018/19 Medium Term Expenditure Framework (MTEF), no tender awards should be made until the 2016/17 budget review and the re-prioritisation of capital projects is finalised.
All new tenders for feasibility studies for the capital projects and/or surveys envisaged under the operational budget should be put on hold, it said.
Schlettwein said the measures are aimed at placing public finances on a sustainable path as government adjusts to a changing macro fiscal environment.
Accounting Officers should ensure that these directives also apply to new capital projects that are funded under the national budget but fall under the execution mandate of the various public enterprises under their respective offices, ministries and agencies, he added.
Schlettwein said at a media briefing last week on the downgrade that government plans to reduce its expenditure and look at fiscal consolidation in order to bring Namibia back to a stable credit rating.