1 June 2018

Namibia: RCC Property Auctioned Off Over Debt

The property of the Roads Contractor Company (RCC) district office at Keetmanshoop yesterday went under the hammer over a N$4 million debt owed to Namibia Protection Services (NPS).

Deputy sheriff Pieter van Heerden attached the assets that included vehicles, office furniture, computers and earthmoving equipment after the RCC failed to honour a settlement agreement made last year.

The company's chief executive officer, Seth Herunga, yesterday said the parastatal could not secure funding to avoid the auctioning off of the moveable assets over the debt.

"We thought we secured funding, but we lost it," he stated, referring to the controversial N$570 million partnership deal the RCC had signed with Chinese company Nantong Sanjian to boost its finances and survival chances, but which deal government recently declared illegal.

This was because the parastatal had entered into the deal with the Chinese company without government's endorsement.

Herunga said it was difficult to manage the company's precarious financial situation without funding.

"Without funding, we (company management) are against the wall," he remarked.

According to him, the parastatal will remain exposed to creditors, who will seek court execution orders to recover the debts owed to them if issues such as placing the company under judicial management, and the securing of funding remained unresolved.

"Government is aware of our situation, and it is getting worse," he added. The acting CEO said it pains him to see the company "going down" because talks to rescue it drag on.

Herunga said next week, other assets of the company in Windhoek might also be attached and auctioned off over debt.

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