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PPG801S - PROCUREMENT AND GOOD GOVERNANCE - 1ST OPP - JUNE 2025 |
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nAmlBIA UnlVERSITY
OFSCIEnCEAno TECHnOLOGY
FACULTYOF COMMERCE,HUMAN SCIENCESAND EDUCATION
DEPARTMENTOF MARKETING,SPORTMANAGEMENTAND LOGISTICS
QUALIFICATION:POSTGRADUATEDIPLOMA: PROCUREMENTMANAGEMENT
QUALIFICATIONCODE:08PDPM
LEVEL:8
COURSECODE:PPG801S
COURSENAME: PROCUREMENT AND GOOD
GOVERNANCE
SESSIONJ: UNE 2025
PAPER:THEORY
DURATION: 3 HOURS
MARKS: 100
FIRSTOPPORTUNITYEXAMINATION QUESTIONPAPER
EXAMINER MS. PAULINA SHINANA
MODERATOR: MR. TANGI NEPOLO
INSTRUCTIONS
1. Answer all questions.
2. Read all the questions carefully before answering.
3. Make sure your name and surname, question number and the date appears
in the Header and Footer.
4. Give special attention to the manuscript instructions.
THIS EXAMINATION PAPERCONSISTSOF 6 PAGES(Including this front page)
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SECTIONA: SHORT QUESTIONS
(20 marks)
QUESTION 1
Provide the most appropriate term or phrase that correctly completes each sentence. Each
question is equivalent to 2.marks. Write your answer clearly in the space provided. Spelling
and accuracy matter.
Example:
1.1 Water boils at _______
degrees Celsius under standard atmospheric pressure.
Answer: 1.1.100
1.1. The principle of _______
in procurement requires that all actions and
decisions are documented and open to scrutiny to ensure stakeholders can verify that
procedures were followed.
1.2. In the Namibian Public Procurement Act of 2015, the body responsible for conducting
procurements that exceed specified threshold values on behalf of public entities is the
1.3. The WTO Agreement on Government Procurement enforces the principle of
_______
, meaning suppliers from member countries must be treated no less
favorably than domestic ones.
1.4. In procurement governance, _______
is achieved by ensuring different
people are responsible for each key step in the process, such as requisition, approval, and
payment authorization.
1.5. The procurement method designated as the default under Namibia's Public
Procurement Act is ------
1.6. The _______
is the unit within Namibia's Ministry of Finance that sets policy,
issues standardized bid documents, and monitors compliance.
1.7. Procurement policies define the "what" and "why" of procurement, while
-------
define the "how".
1.8. The _______
Model Law on Public Procurement (2011} is widely used as a
template for countries developing national procurement laws aligned with international
standards.
1.9. _______
procurement models consolidate purchasing authority into a single
department or unit for standardization and cost control.
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1.10. A _______
is a documented and mandatory set of steps staff must follow to
implement procurement policies uniformly across an organization.
SECTIONB: STRUCTUREDQUESTIONS(80 MARKS)
SECTIONA: 20 TOTALMARKS
QUESTION2 (40 Marks)
Review the Newspaper article titled "ACC probes Roads Contractor Company boss over
N$1.5m fuel tender" at the end of this question paper and answer the following questions.
2.1. Critically examine the procurement risksthat may arise from awarding tenders without
adequate oversight.
(10 marks)
2.2. What specific internal governance failures likely occurred in this situation? Link your
answer to key principles in Namibia's Public Procurement Act.
(10 marks)
2.3. Propose a control framework that would ensure the separation of roles and oversight
in similar SOEs.
(10 marks)
2.4. How should RCChave handled the tender processdifferently to ensure transparency
and accountability?
(10 marks)
QUESTION3 (20 Marks)
Design a procurement performance dashboard for the Ministry of Education, Innovation,
Youth, Sports, Arts and Culture. Identify at least five KPls that capture value-for-money,
compliance, and efficiency. Justify how each KPIaligns with good governance principles.
(20 marks)
QUESTION4 (20 Marks}
4.1. Briefly describe why risk management is essential in public procurement. (5 marks)
4.2. Identify two common procurement-related risks.
(4 marks)
4.3. For each identified risk, propose one mitigation measure.
(6 marks)
4.4. Explain how procurement planning can reduce exposure to risks.
(5 marks)
TOTAL MARKS:100
ALLTHE BEST
SECTIONB: 80 TOTALMARKS
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ACCprobes RoadsContractorCompanybossover N$1.Sm
fuel tender
Author: Tracy Tafirenyika
Published by: The Namibian Newspaper: 24 February 2025
Link: https://www. nami bian.com. na/ ace-probes-roads-contractor-com
tender /?
pa ny-boss-over-n 1-Sm-fuel-
The Anti-Corruption Commission (ACC} is investigating Roads Contractor Company (RCC)acting chief
executive Dasius Nelumbu over corruption allegations involving three tenders.
Documents seen by The Namibian show that one of the contracts under scrutiny is a N$1.S-million
fuel supply tender awarded to Eco Fuel Investment CC, a fuel contractor company allegedly linked to
Victor Malima - a businessman implicated in controversial deals at the National Petroleum
Corporation of Namibia.
Another RCCcase involves allegations of overpaying subcontractors.
Nelumbu has denied any wrongdoing, saying there are distractors who are spreading misleading
information.
ACCspokesperson Josefina Nghituwamata, says investigations for two of the cases are at an advanced
stage.
"The ACChas close to three cases registered with allegations of corruption against the RCC,"she says.
Nghituwamata adds that the third case was recently reported to the commission and is currently being
investigated.
"Unfortunately,we are unableto discussthe specificsof the allegationsin this instanceor provide
the namesof anyoneunder investigationat thistime," shesays.
According to her, "once the investigation is finished, we will be able to provide more information".
Sources have told The Namibian that the ACC visited the RCC in November last year. RCC, a state-
owned civil engineering outfit, has been in the red for the past few years and has relied heavily on
government bailouts to stay afloat, including paying salaries.
Last year the Roads Authority- another state-owned company- expressed frustration, saying the RCC
delayed the N$43 million Engoyi-Omuntele road project in the Oshikoto region.
THE TENDER
Documents seen by The Namibian dated 11 November 2024 reveal how RCCchief executive Nelumbu
requested an urgent fuel purchase, with the request only bearing his signature.
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The fuel was purchased from Eco Fuel Investment CCand the transaction was made on the same day
Nelumbu requested for the fuel.
The documents, which name Eco Fuel Investment CCthe beneficiary of the payment, show that the
transaction was successfully processed. Efforts to get comment from businessman Victor Malima on
Eco Fuel were not successful.
Speaking to The Namibian last week, Eco Fuel spokesperson Hamberera Andreas said their company
operates as a contractor for RCCbut denied wrongdoing.
"Our focus is on delivering services as requested by our clients. We are not involved in the
procurement processesof our clients and recommend reaching out to the RCCdirectly for further
details regarding those matters," she said.
'CHAOTIC'
Nelumbu has also denied wrongdoing, suggesting that some employees have spread misleading
information.
"We have some employees who like chaos and some who were dismissed. My hope is that you are
not being fed information which is personal attacks."
He explained that the company is committed to its projects.
A source who prefers to remain anonymous alleged that contract negotiations are being conducted
over the phone, with some subcontractors overpaid.
TAINTEDCOMPANY
The RCChas been marred by alleged corruption and mismanagement over the past decades, with its
executives repeatedly implicated in scandals.
In 2005, payments of nearly N$4.9 million for land linked to the 81 City property development in
Windhoek led to fraud and Anti-Corruption Act charges against former chief executive Kelly
Nghixulifwa. Last year, he was convicted on one charge of fraud and three charges of corruptly using
his position as chief executive.
in 2013, The Namibian reported that the RCCpurchased a N$3.4-million luxury house for an executive.
That same year, its subsidiary, Bricks and Concrete Industries, owed Ohorongo Cement N$15 million
due to mismanagement.
In 2017, over 300 employees went unpaid, prompting a government bailout to cover salaries.
Despite evidence of chronic mismanagement, then-works minister Alpheus INaruseb sided with
officials opposing the RCC'sclosure. !Naruseb was later demoted by former president Hage Geingob.
In 2017, the RCCapproved the N$800-million Windhoek Plaza project, with allegations that N$20
million was earmarked as kickbacks for politically connected figures.
Former public enterprises minister Leon Jooste has in the past argued against bailing out the RCC.In
2021, he said that RCC'sdebt exceeded N$600 million.
The decision to shutdown RCCwas never implemented.
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In 2021, Jooste said the government had abandoned plans for RCC's liquidation. "The Ministry of
Public Enterprises is not pursuing liquidation or judicial management but rather seeking an
appropriate way to rescue the company," he said.
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