07 Sep 2017 17:10pm
WINDHOEK, 07 SEP (NAMPA) The Cabinet Committee on Overall Policy and Priorities (CCOPP) has resolved to put the Roads Contractor Company (RCC) under judicial management.
Minister of Public Enterprises, Leon Jooste said during a media briefing here on Thursday the decision was supported by the seriousness of the RCCs current financial situation and the limited availability of State resources to assist any ailing commercial enterprise.
The CCOPP is the highest Cabinet committee and is chaired by President Hage Geingob.
The decision, however, needs to be tabled in Parliament as the RCC Act requires Parliamentary endorsement to place the RCC under judicial management or liquidation.
Approval will be sought from Parliament and thereafter the Master of the High Court will be approached to sanction the judicial management - a court-supervised process that seeks to rehabilitate a potentially viable company.
Jooste said the RCC has posted financial losses since its establishment in 2000, with the value of liabilities exceeding the value of its assets.
RCCs creditors will have to wait to see their claims against the company settled while under judicial management, he said.
The salaries of the 393 employees of the company will in the interim be paid from Treasury, while the shareholders and the board will be disempowered.
According to Jooste, the company spends N.dollars 7 million per month and the assistance by Treasury in the interim will only cover the basic salaries and no benefits.
As a responsible government we are not comfortable sitting with 393 unemployed Namibians, this is why this was the best available option at the time, he said.
The minister also said that they consulted all stakeholders and took the companys business plan into consideration, which he said was not feasible.
The CCOPP decision is expected to be tabled in Parliament on Tuesday.
The RCCs objective are to undertake work relating to the construction or maintenance of roads or any other construction works, including buildings, bridges, waterworks, dams, tunnels and railway infrastructure.