RCC needs more revenue to sustain itself: Haihambo

21 Jul 2013 06:00
WINDHOEK, 21 JUL (NAMPA) - The Roads Contractor Company (RCC)’s Chief Executive Officer, Engelhard Haihambo says the company requires an optimum annual revenue of N.dollars 600 million in order to sustain itself.
Haihambo, accompanied by the RCC Board of Directors, paid a courtesy call on Prime Minister Hage Geingob here on Friday.
The Minister of Works and Transport, Erkki Nghimtina was also present during the meeting.
“We are talking about realised revenue, not the value of projects, meaning that within a financial year, the RCC needs to realise N.dollars 600 million through the execution of civil engineering infrastructure projects,” he said while speaking during the courtesy call.
The RCC is mandated to construct, maintain and rehabilitate roads and other civil engineering infrastructure, and it thus identifies various companies to execute such projects around the country.
Haihambo said the company has identified some issues with its negative core structure which need to be addressed such as the maintenance of an ageing fleet, a backlog in value added tax (VAT) and pay-as-you-earn (PAYE), as well as an old employment profile.
He noted that the RCC has a business growth strategy which is driving it to grow, but informed the Prime Minister that the company requires more funding in order to execute the work it is mandated to do.
He said in 2008, the RCC developed a turnaround plan, an approach which is based on looking at problems affecting the company, their causes and solutions in order to make the business sustainable.
The CEO noted that one of the qualitative achievements of the turnaround plan is the development of the RCC’s strategic plan, a strategic map which has strategic focus areas.
According to the RCC website, some of these strategic focus areas are organisational effectiveness, capacity development and talent management, and debt restructuring.
The RCC currently employs over 1 600 people and has 14 offices countrywide.
(NAMPA)
ME/AS