Embattled RCC 'captured' by Chinese

16 May 2018 | Politics

A N$570 million loan facility agreement between the Roads Contractor Company (RCC) and a Chinese firm has sparked fears that the parastatal is now a “captured” entity.

Popular Democratic Movement (PDM) parliamentarian Nico Smit said yesterday he believes the RCC and government will now be forced to give tenders to Chinese firm Jiangsu Nantong Sanjian (Pty) Ltd CC, in order to pay back the loan facility.

Finance minister Calle Schlettwein last week said legal provisions were “completely ignored” in the N$570 million loan agreement between the RCC and the Chinese firm.

Schlettwein reiterated the contract was entered into illegally because necessary provisions, not only in the State Finance Act but also in the new Public Procurement Act, as well as the Public Private Partnership Act, were not adhered to.

Moreover, said Schlettwein, some of the road contracts stipulated in the loan agreement have not been budgeted for.

“We are obliged to act and we have therefore approached the attorney-general's office for advice. We have to do that when boards take negligent decisions,” Schlettwein said.

He said the contract, which has already been signed, will have to be set aside if proven it was entered into illegally.

Smit was of the view that the loan would have to be repaid through tenders.

According to him, Namibia had borrowed from China through the RCC and this now meant that the Chinese government held a stake in the parastatal. “In this case, China now having more equity in the Namibian parastatal than government itself can only mean one thing: China owns a Namibian parastatal and is once again taking jobs away from Namibians,” Smit said.

The State Finances Act compels parastatals to get the approval of the ministry of finance when seeking funding for operations.



Schlettwein was recently quoted as saying the Chinese-RCC marriage was illegal.



“I do not have a problem with the partnership, but they signed the contract without following procedures. It is, therefore, an illegal agreement. We cannot support it,” he said.



According to Schlettwein, the agreement, which promised the Chinese company projects, has not been budgeted for.



Smit also believes that government would have to issue tenders for the construction of roads, as a means to pay back the Chinese for the cash flow provided to the RCC for its operations and continued existence.



RCC chairperson Fritz Jacobs did not respond to comments made by Smit when approached.



However, when previously commenting on its new Sino-Namibia relationship, he said the RCC was looking for off-balance sheet financing.



Off-balance sheet financing means a company does not include a liability on its balance sheet. It is an accounting term and impacts a company's level of debt and liability.



“We are currently finalising an off-balance sheet funding solution. This funding does not require government guarantees, as per cabinet decision,” Jacobs said during a previous interview.

OGONE TLHAGE

Similar News

 

PDM concerned about strikes

1 day - 16 August 2018 | Politics

The Popular Democratic Movement (PDM) has expressed concern about the growing number of strikes and mass actions by disgruntled employees lately. The official opposition party...

Namvet backs off on party

2 days ago - 15 August 2018 | Politics

Despite having provisionally called off their demonstration to parliament to hand over a petition to Speaker Peter Katjavivi on Monday, Namvet says it will continue...

Inside the dungeons

4 days ago - 13 August 2018 | Politics

“You will shit today.”With these words by one of the men intent on dragging him to the Lubango dungeons for allegedly spying for the apartheid...

RDP president throws in the towel

6 days ago - 10 August 2018 | Politics

Rally for Democracy and Progress (RDP) president Jeremiah Nambinga has resigned after long and bitter power struggles in the ailing opposition party.Nambinga, who has served...

Cowards kill women - PDM

1 week ago - 10 August 2018 | Politics

Popular Democratic Movement (PDM) Ohangwena regional coordinator, Hidipo Hamata, says women are dying like “cockroaches, rats and flies at the hands of cowards who call...

Give back ancestral land - Swanu

1 week ago - 10 August 2018 | Politics

Swanu says farms currently owned by white farmers and those occupied by resettled beneficiaries, who have not historically lost land, must be returned to indigenous...

Nudo lawsuit sees second delay

1 week ago - 08 August 2018 | Politics

The hearing of an urgent application in which Nudo Secretary-General Meundjuu Jahanika is challenging the legitimacy of Ester Muinjangue and her faction as leaders of...

Swapo under pressure

2 weeks ago - 02 August 2018 | Politics

The battle for regional distribution of land to impoverished and landless communities has taken a new twist, with South African president Cyril Ramaphosa indicating that...

Geingob emphasises stronger partnerships at Brics

2 weeks ago - 27 July 2018 | Politics

President Hage Geingob was due to address the Brics Outreach Dialogue Session today, where he was expected to emphasise the need for equity in international...

ECN sets record straight

4 weeks ago - 20 July 2018 | Politics

The Electoral Commission of Namibia (ECN) this week issued a correction on a previous statement that the All People's Party (APP) and the United People's...

Latest News

Cops probe 'murder ­conspiracy'

2 hours ago | Crime

The police say they are investigating allegations that the recent death of a Nigerian professor in Windhoek was not suicide.The family of Dr Ayetuoma Cyril...

Dobberstein new MD for advertising...

2 hours ago | Business

Elizabeth JosephWeathermen & Co recently appointed Nadja Dobberstein as its managing director.Born and raised in Namibia, she is a passionate and driven individual who strives...

Utilising apps to manage and...

2 hours ago | Business

Businesses, regardless of their size or function, should consider utilising applications for agility and efficiency. PowerCom Pty Ltd's CEO, Alisa Amupolo, made these remarks during...

Ondonga mess has festered too...

2 hours ago | Columns

The Ondonga succession issue has been a hot potato for years and there have been lingering fears that the considerable infighting could lead to dangerous...

Third woman killed in the...

2 hours ago | Crime

The Oshikoto police yesterday arrested a 26-year-old man for allegedly murdering his girlfriend.The suspect allegedly hacked Albertina Shipale Sackaria to death with a panga at...

Business Park still in limbo

2 hours ago | Business

A N$19 million tender for the construction of an SME business park at the Omahenene border post in the Omusati Region has suffered another setback.The...

Haukambe’s resilience an Afrox asset

2 hours ago | Business

Michelline Nawatises He is responsible for managing central and northern towns. He joined Afrox in 2013 as an account controller and moved to sales in...

All eyes on Geingob

2 hours ago | International

All eyes are on President Hage Geingob today as he takes over the SADC chairmanship from South African president Cyril Ramaphosa, with the region expecting...

Lands ministry drags feet on...

2 hours ago | Agriculture

While Ombudsman John Walters is still waiting for the master list of resettlement farm beneficiaries - requested more than two months ago - he says...

Load More