!Naruseb defends RCC board

11 Sep 2017 18:30pm
WINDHOEK, 11 SEP (NAMPA) – Minister of Works and Transport came out in defence of the current board of directors of the Roads Contractor Company (RCC) after the company was put under Judicial Management last week.
Addressing a media conference in the capital on Monday, Alpheus !Naruseb explained that the financial distress at RCC was inherited by the current board and not caused by it.
“It is an accumulation and culmination of the past situation and compounded by other influences and distractions, which worsened the RCC situation,” he said.
The minister noted the five-year strategic business plan compiled and submitted by its board was economically feasible as the construction sector in Namibia has always been profitable.
!Naruseb added that Namibia as a developing country requires continued and large investments in infrastructure, housing, and many other services.
He said this testimony is contained in the recently launched Fifth National Development Plan (NDP 5), which provides for N. dollars 163 billion in development planning over the next five years.
The minister noted that the transformation of the RCC will take between three and five years, which may result in various challenges for the board and consequently some tough choices to be taken by it.
“The Ministry of Works and Transport will continue to render its support, so as to ensure the success of RCC benefits the workers and the country at large,” !Naruseb said.
The Cabinet Committee on Overall Policy and Priorities (CCOPP) last week decided to put the RCC under Judicial Management.
Minister of Public Enterprises, Leon Jooste said at the time the decision was supported by the seriousness of the company’s current financial situation and the limited availability of the State resources to assist any ailing commercial enterprise.
The decision, however, needs to be tabled in Parliament as the RCC Act requires Parliamentary endorsement to place the company under judicial management or liquidation.
Jooste said the decision is expected to be tabled on Tuesday for approval to be sought from Parliament after which 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.
(NAMPA)
UT/CT/EKM