Builders bemoan NDF non payments

By Patience Makwele
Building contractors have lifted the lid on crippling delays in payments for work done, within key government ministries, among them the Ministry of Defence. They claim that payments for contracted work are sometimes held back for as long as three months, with the latest arrears stretching from November 2024 to May 2025.
Speaking to Confidente on condition of anonymity, one of the contractors said the protracted delays have forced small companies like his to retrench workers, sink into debt and turn to high-interest cash loans just to keep staff on site. He warned that mounting interest and unpaid bills are driving many contractors “into slavery to the lenders”, while the government continues to demand that projects be delivered on time.
“This problem of delayed payments has become an ongoing issue,” the contractor stressed. “We try to stay healthy and keep the business running, but sometimes the work we are required to do cannot even be completed because the ministries delay our payments,” the contractor said. “Some payments which were supposed to be made in November 2024 were only settled in May 2025. Only a few workers were paid in full, others received half and some had to wait even longer. I had to retrench five workers and now employ only eight permanent staff. People depend on me, yet I can’t always pay them.”
The contractor added: “If I borrow money from a lender and pay 30 percent interest every month, by May the interest has accumulated drastically and the debt just grows and grows.”
When asked if concerns had been raised with the ministry, the contractor revealed that those who speak out are often threatened. “When we complain, we are threatened with losing contracts. They simply say there is ‘no money’. And if you are not on time with your work, they will disqualify you or refuse to give you another job.” Another affected contractor, explained that said their invoices with the Ministry of Defence remain unpaid months after submission.
“I invoiced them on mid-year and until today they just say the payment is in process and that there is no money. We are now struggling to pay our suppliers and our workers,” they said. The contractor further alleged that informal kickbacks are demanded inside the ministry before invoices are cleared. “If you invoice, say a total of N$700 000 or N$1 million, you have to pay at least N$200 000 or N$300 000 to the people working in the ministry to get your payment. This is affecting tax payments with the Namibian Revenue Agency (NAMRA). That is why at the end of the day you even fail to pay NamRA, because you did not get the full amount you invoiced.”
CONFIRMATION
When contacted for comment, Ministry of Defence and Veterans Affairs spokesperson Colonel Petrus Shilumbu confirmed that there are some invoices for work done that remain outstanding, attributing the delay to a lack of funds for day-to-day maintenance.
“The ministry owes the company because some invoices are still in the process of being paid. All outstanding payments will be settled as soon as possible in October and the process of paying the company has already started,” Shilumbu said.
UNION
Metal and Allied Namibian Workers Union (MANWU) secretary-general Justina Jonas said the union can only intervene once it has precise details.
“If a construction company has a problem with the Ministry of Defence, we must know which company and at which site. We deal with specific companies, not general complaints,” Jonas said.
The unionist, referred the publication to Angula Angula, who in turn said the union would first need to verify whether the affected contractors are registered with them before taking up the matter.
“I will have to check our database to see if these companies as part of us, and then I can refer the matter to our branches. Every site we organise has a shop steward who represents workers. If there is a shop steward, we can arrange a meeting to hear their concerns,” said Angula.
LABOUR EXPERT
Meanwhile, labour expert and social justice activist, Herbert Jauch stressed that the State has a legal obligation to honour its payment commitments on time, warning that the ripple effects of delays are devastating. “The government cannot hide behind administrative excuses. When contractors are not paid, they in turn fail to pay wages and workers who often have no savings, are left stranded,” Jauch said.
He added that workers consistently carry the brunt of the problem, either through retrenchments or months without pay and described the situation as “totally unacceptable that workers always pay the price for other people’s negligence.”
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