MWT rescues RCC building
20 Jun 2018 12:40pm
WINDHOEK, 20 JUN (NAMPA) The Ministry of Works and Transport (MWT) will rescue the Roads Contractor Company (RCC)s head office building by paying off an overdraft that the company owes to a local bank.
The RCC was given 30 days by Bank Windhoek to pay back an overdraft of N.dollars 80.2 million or was to face the auctioning off of its assets including its head office building in the Southern Industrial area.
MWTs Public Relations Officer, Julius Ngweda told Nampa on Wednesday that the ministry and the bank held a meeting on Monday and reached an agreement to have the outstanding amount of N.dollars 80.2 million settled for the RCC.
He however did not indicate how much the ministry would pay or how long it would take.
Ngweda assured the RCCs employees that the building was safe and would not be auctioned off.
RCCs Acting Chief Executive Officer, Seth Herunga wrote to Minister John Mutorwa last week, requesting a bail-out for the debt.
He stated in the letter that the companys situation had been worsened by lawsuits against the company for non-payment of creditors obligations.
Herunga wrote that the companys main financial banker, Bank Windhoek, whose outstanding debt is secured against the entire head office property, was calling up the debt and invoked the security clause that would result in a forced disposal of the property, should the company fail to pay the outstanding instalments overdue by 30 days.
However, the property has an investment development portfolio of N.dollars 2 billion.
Assets belonging to the RCC in Gobabis and Ondangwa were auctioned off last week, whilst assets in Keetmanshoop were auctioned off last month in a forced disposal for N.dollars 4.2 million owed to Namibia Protection Services.