The Supreme Court has dismissed an appeal by Africure Pharmaceuticals Namibia, a company owned by businessman Shapwa Kanyama, over a disputed N$1.4 billion medical supply tender.
The highest court in the country has confirmed that the Central Procurement Board of Namibia (CPBN) acted lawfully when it awarded a major pharmaceutical contract to Cospharm Investments in August 2023. This judgement follows a lengthy legal battle and a previous ruling by the High Court.
Background of the Case
In May 2023, High Court judge Shafimana Ueitele set aside the CPBN’s decision to award Cospharm a N$1.3 billion contract to supply medicines to the Ministry of Health and Social Services. At that time, Africure had been awarded N$123 million in contracts.
However, Cospharm, whose bid was originally disqualified, had applied for the decision to be reviewed. The CPBN later revised its selection, reducing Africure’s award to N$45 million and awarding Cospharm the larger N$1.3 billion contract.
Africure challenged this change, arguing that Cospharm’s reconsideration request was not communicated within the seven-day period required by the Public Procurement Act. Judge Ueitele agreed, declaring the board’s revised decision invalid and saying that all bidders should have been notified on time.
Supreme Court Overturns High Court Ruling
On appeal, Acting Judge of Appeal Dave Smuts, with agreement from Judges Hosea Angula and Theo Frank, overturned the High Court’s ruling. The Supreme Court found that while there was a delay in notifying Cospharm of the CPBN’s revised decision, the delay did not make the board’s action invalid.
Smuts emphasized that Cospharm’s bid offered a saving of around N$4.8 million compared to Africure’s. He said the purpose of the Public Procurement Act is to ensure transparency, accountability, and the selection of the lowest responsive bid to protect public funds.
“It would go against the goals of the law for a more expensive bid to be selected over a cheaper, valid one due to technical delays,” he noted.
The Supreme Court concluded that the CPBN acted properly in correcting an earlier mistake and that Cospharm’s selection was both justified and in the public interest.
Final Decision
The court’s final decision confirms Cospharm as the rightful winner of the N$1.3 billion pharmaceutical contract. Africure’s award stands reduced to N$45 million.
This ruling brings the legal dispute to an end and confirms the integrity of the procurement process, according to the Supreme Court.
