Etuhole Amutenja
The Kavango East Regional Council is facing renewed accusations of failing to pay contractors on time, with Rundu-based Company Mugema Investment CC claiming more than N $172 000 in interest after waiting months for settlement of an emergency pipe repair contract.
Mugema Investment’s chief executive officer, Martin Murongo, said the council awarded his company an emergency procurement on 18 July 2024 to excavate and fix a leaking pipe at the regional offices in Rundu.
“Excavation and fault finding began on the same day and during this process we found out that the leakage was coming from a rusted galvanised T-connector and the rust caused the pipe to crack. The crack that was on the damaged pipe wasn’t something to be fixed, but rather replaced,” Murongo said.
On 19 July, the company blocked the damaged section to restore water to the rest of the building. Four days later, a report with findings, activities and recommendations was submitted to the council’s engineer.
Murongo said the engineer told them the recommendations would be presented to the procurement committee but later informed them that the council would not proceed, saying the proposed repairs were too costly.
On 5 August 2024, Mugema submitted its purchase order (PO) with supporting documents for payment. Murongo said the engineer refused to sign, arguing the work was incomplete. Murongo said he then approached procurement committee, who confirmed the document will be signed and paid.
However, a later site meeting ended with the officials insisting the work was incomplete. They asked for a new quotation limited to what had been done.
“On 17 September 2024 we had a meeting with the head of procurement and the matter was resolved that the PO will be signed. The PO was signed and handed in for payment,” he explained. The company submitted its invoice on 21 October 2024, including interest for late payment. With no response, Mugema sent another invoice on 4 February 2025 with updated interest and warned of legal action if payment was not processed.
On 12 February 2025, the council paid the original PO amount but excluded interest. Murongo said his company has since submitted several invoices for accumulated interest, the latest in September 2025, but no payment has been made. “So up to date the council still has not paid the accumulated interests because of reasons only known to them. Interests which come from hired equipment, outsourced services, as well as a loan to execute the emergency project, which has now accrued interest that we are not sure we will be able to pay”
According to an invoice dated 19 September 2025, Mugema is now demanding N$172 420.47 in accumulated interest.
The breakdown includes N$15 928.47 interest on a loan, N$149 100.00 in late interest calculated at N$600 per day over 182 days, and N$7 392.00 in unpaid salaries.
Murongo said repeated attempts to recover the interest have been ignored. He added that other companies have experienced similar delays or non-payment.
One such case involved Empire Sense Investments CC, which in March 2023 disconnected the sewer pump at Max Makushe Senior Secondary School in Mukwe constituency over unpaid fees.
The company claimed nearly N$1 million for emergency work done in 2021 to repair and extend sewerage ponds.
The dispute disrupted services for more than 800 pupils at the school after the directorate of education failed to pay the contractor.
Meanwhile, questions sent to council were not answered at the time of going to print.
Rundu Constituency Councillor Paulus Mbangu said he had no information on the matter and referred enquiries to the chief regional officer, Ludgela Nangura, and Chairperson Damian Maghambayi.
Maghambayi told this newspaper that such queries should be directed to the CRO as the accounting officer.
Nangura confirmed receipt of detailed questions from Confidente but had not responded before print.
