12 September 2017

Namibia: Cabinet Committee Ruled Out RCC Liquidation - !naruseb

WORKS minister Alpheus !Naruseb yesterday said the Cabinet committee which decided on the future of the Roads Contractor Company ruled out liquidation as an option for the company.

He said this at a press conference in Windhoek yesterday, following the decision of the Cabinet committee on overall policy and priorities to place the RCC under judicial management.

Public enterprises minister Leon Jooste last week announced that a Cabinet committee chaired by President Hage Geingob had agreed to put the parastatal under judicial management.

!Naruseb explained that the decision was made "in support of the continuation and normalisation of the business operations of the RCC, and not the liquidation of the RCC."

He added that the decision should not be misunderstood as an intermediate step towards closing the contractor company.

"It is in support of the development of this country, as well as the promotion and creation of employment opportunities," the minister said.

Making reference to the fifth National Development Plan, !Naruseb said it is important for the RCC to continue its role as a national contractor on infrastructural development for the country's progress.

While Jooste said the RCC's business plan is not feasible, !Naruseb said the company's five-year strategic business plan is in fact feasible in that the construction sector in Namibia has always been profitable, and that because Namibia is a developing country, continued and large investments in infrastructure will always be needed.

"Do we as Namibians want to see others from outside becoming significant role-players in our construction industry?" the minister asked rhetorically.

Works permanent secretary Willem Goeiemann also refuted claims that the RCC's business plan is not feasible, saying he chaired the committee that passed the strategic plan as feasible.

!Naruseb added that while he would be happy if the transformation happened faster, he knew it would take between three and five years.

Referring to the company's historical debt, the minister said the board was not to blame for the financial woes, and that it will remain part of the transformation of the company.

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