RCC without board of directors

18 Jun 2018 10:50am
By Anna Salkeus
WINDHOEK, 18 JUN (NAMPA) – The last two board members of the Roads Contractor Company (RCC) resigned last week , following a directive from Cabinet to dismiss the company's board members for failing to follow due process in an agreement signed with a Chinese company.
Ministry of Works and Transport (MWT)’s Public Relations Officer, Julius Ngweda confirmed to Nampa on Monday that the chairperson of the RCC board of directors, Fritz Jacobs and board member, Elsie Skrywer resigned last week after other board members, Leah Namholo, Elzevir Gelderbloem and Melkizedek Uupindi had vacated their positions earlier.
The RCC and the China’s State-owned Jiangsu Nantong Sanjian Construction (JNSC) Group entered into and signed a ‘Funding and Technical Support Agreement’ on 09 April 2018 without prior input or approval from the Minister of Works and Transport, John Mutorwa and without obtaining legal advice from the Attorney General (AG), Albert Kawana.
The agreement entailed that the JNSC Group would give the RCC N.dollars 580 million in exchange for partnering with the company on projects worth over N.dollars 2 billion.
Government then declared the agreement between the RCC and JNSC Group invalid as a result of failure to consult its line minister before it was signed.
A Cabinet decision was taken last week Monday to dismiss the board which, at the time, only consisted of Jacobs and Skrywer.
Ngweda said the next step would be to appoint interim board members, however, the ministry would first consult the AG and the Minister of Public Enterprises, and depending on the advice given, make the appointment. He however did not indicate when the new board would be appointed or for how long they would serve.