AG studies RCC matter
13 September 2017 | Government
According to Jooste, the matter has been discussed with Prime Minister Saara Kuugongelwa-Amadhila and will be tabled in parliament after the attorney-general completes his assessment.
The study was further necessary to determine which minister would table the RCC motion in parliament.
“We are waiting for the AG to look into this specific matter and to pronounce himself. We will then want to see this tabled as soon as is practical. The AG is simply looking at the matter from a legal perspective to determine who should table the bill in parliament,” said Jooste.
Jooste earlier announced that a cabinet committee had resolved to place the RCC under judicial management.
If parliament approves the decision, an application will be filed with the High Court to place the RCC under judicial management.
Judicial management is a temporary court-supervised rescue plan. Its objective is to give viable companies which are in financial trouble a more even chance to rehabilitate and be restored to profitability.
Jooste had previously said judicial management was the best option for the RCC.
“We are convinced that as we looked at all the options for the RCC, our collective decision is that this is the preferred option for the company,” Jooste said.
During that time, the shareholder (the government) and the board will be “disempowered” and will have no influence or powers over the parastatal.
“If the board were to decide to oppose this decision, the shareholder will have no other choice but to dissolve it and replace it with an interim one,” Jooste said.
He said that the current and former RCC boards had been part of the process and were granted ample opportunity to share their views and insights. The judicial manager can at the end of the process recommend that the company be wound up or that there is a chance to salvage it. In the end the shareholder will have to decide the fate of the company.