Jooste keen to table RCC bill
Public enterprises minister Leon Jooste is keen to table the Judicial Management Bill for the Roads Contractor Company before the end of the year.
The bill has been finalised and is ready to be tabled, he says.
Because the bill is not lengthy, he is positive it can be tabled before the National Assembly wraps up its final session of the year.
“There's no reason why this bill cannot be tabled during this session. It is a very simple one-page bill,” Jooste told Namibian Sun.
Judicial management is a process that tries to rescue a distressed company as a going concern through the formulation and implementation of a reconstruction plan. The process guarantees continuation of operations.
According to the Companies Act of 2014, a company may be placed under judicial management if mismanagement has led to the company being unable to pay its debts or meet its obligations.
A cabinet committee sealed the fate of the RCC by deciding that it would be best to place the beleaguered public entity under judicial management.
Once the bill is passed, the High Court will decide who the RCC's judicial manager will be. The new manager will try to revive the RCC, or eventually decide to liquidate.
During the period, however long or short it may take, all 393 RCC employees will be paid their basic salaries from the treasury, which translates into N$7 million per month from the treasury.
This, however, does not include any bonuses or other extra benefits, Jooste said.
All other costs related to the judicial management process will be borne by the RCC.
One of the first things the judicial manager will have to do is to pro-actively seek ways to restructure the debt of the company and to respond to financial and legal demands on the company.
Jooste stressed that the outcome of the process cannot be pre-empted.
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 government as sole shareholder will have to decide the fate of the company.
OGONE TLHAGE
The bill has been finalised and is ready to be tabled, he says.
Because the bill is not lengthy, he is positive it can be tabled before the National Assembly wraps up its final session of the year.
“There's no reason why this bill cannot be tabled during this session. It is a very simple one-page bill,” Jooste told Namibian Sun.
Judicial management is a process that tries to rescue a distressed company as a going concern through the formulation and implementation of a reconstruction plan. The process guarantees continuation of operations.
According to the Companies Act of 2014, a company may be placed under judicial management if mismanagement has led to the company being unable to pay its debts or meet its obligations.
A cabinet committee sealed the fate of the RCC by deciding that it would be best to place the beleaguered public entity under judicial management.
Once the bill is passed, the High Court will decide who the RCC's judicial manager will be. The new manager will try to revive the RCC, or eventually decide to liquidate.
During the period, however long or short it may take, all 393 RCC employees will be paid their basic salaries from the treasury, which translates into N$7 million per month from the treasury.
This, however, does not include any bonuses or other extra benefits, Jooste said.
All other costs related to the judicial management process will be borne by the RCC.
One of the first things the judicial manager will have to do is to pro-actively seek ways to restructure the debt of the company and to respond to financial and legal demands on the company.
Jooste stressed that the outcome of the process cannot be pre-empted.
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 government as sole shareholder will have to decide the fate of the company.
OGONE TLHAGE
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