Staff Writer
A multimillion-dollar dispute over the stalled upgrading of the Okakarara Vocational Training Centre (VTC) has moved closer to possible settlement.
This came after the High Court was asked to refer the matter to court-connected mediation before proceeding to trial.
The dispute involves the Central Procurement Board of Namibia (CPBN), Octagon Construction (Pty) Ltd and the Namibia Training Authority (NTA) over a N$64.2 million construction contract awarded for the upgrading of the Okakarara VTC in the Otjozondjupa Region.
The parties requested that the matter be referred to mediation, noting that the NTA had not yet been joined when the case was previously considered for court-connected mediation.
They also indicated that mediation should take place before the matter proceeds to the pre-trial stage, as they seek an opportunity to resolve the dispute through an alternative dispute resolution process.
The legal battle stems from a contract awarded by the CPBN, on behalf of the NTA, to Octagon Construction on 3 April 2019 following a competitive bidding process.
The agreement, valued at N$64,251,259.24, was intended to cover the upgrading of the Okakarara VTC over a period of 24 months.
According to the CPBN, Octagon Construction was appointed to execute the works in line with approved specifications, contractual obligations and instructions issued by the project engineer.
However, CPBN alleges that the contractor committed repeated and material breaches during the implementation of the project.
The alleged breaches include failure to comply with approved specifications, persistent delays in construction progress, substandard workmanship, failure to follow instructions from the project engineer and failure to maintain acceptable performance levels.
The procurement board claims that Octagon Construction was notified of the alleged breaches and was given opportunities to remedy the problems, but allegedly failed to do so.
As a result, the CPBN says it exercised its rights under the contract and resolved on 28 August 2025 to terminate the agreement.
The contractor was formally served with a notice of termination on 10 September 2025 and was instructed to stop all work, secure the site and vacate the premises.
The CPBN alleges that despite the termination and written instructions, Octagon Construction has remained in occupation of the Okakarara VTC project site without legal authority.
The procurement board argues that the continued occupation has caused delays in appointing another contractor to complete remedial and outstanding works, while also creating administrative and financial challenges and affecting its ability to fulfil its mandate under the Public Procurement Act.
The CPBN is seeking an order compelling Octagon Construction, including its employees, agents and subcontractors, to vacate and hand over possession of the project site.
It is also seeking authority for the Deputy Sheriff of the High Court to evict the contractor should it fail to comply with such an order, as well as legal costs.
Meanwhile, the parties have agreed on several case management issues as the matter moves forward.
No further parties are expected to be joined, no consolidation with other matters is planned and expert reports are currently not envisaged.
The parties have set timelines for further pleadings, with the filing of witness statements scheduled for 18 September 2026. Further discovery processes are expected to be addressed by 14 August 2026.
