Roads Authority in cash crunch

11 February 2021 | Transport

OGONE TLHAGE

WINDHOEK



The Roads Authority is once again failing to pay its contractors for work carried out.

Several road contractors have been approaching Namibian Sun complaining about the pace at which they are being paid for services rendered. They say the delayed payments prevent them from finishing projects on time and within budget, leading to unnecessary and expensive delays. The RA admitted the delays and said it was working on resolving outstanding payments due to contractors. “The RA recognises that some contractors have been paid at a slow pace. However, the RA is currently busy processing those outstanding invoices and they will be paid during the month of February,” RA spokesperson Hileni Filemon said.

Filemon would not respond when asked how much the RA owed contractors, citing confidentiality.



Not a first

It is not the first time that the RA has struggled to pay contractors.

The Road Fund Administration (RFA) had to borrow N$500 million in 2019 to help the RA pay its creditors. That was the second time the RFA had to borrow money on behalf of the RA.

The RA could not pay its contractors after its budget for road projects in the 2018/19 financial year had been slashed from the proposed N$2.5 billion to N$1.2 billion.