No decision on RCC yet
The minister of public enterprises, Leon Jooste, on Friday said no decision on the future of the beleaguered Roads Construction Company (RCC) had been made.
“It was not D-Day yet,” said Jooste in response to a news article which suggested that a cabinet committee would decide last Wednesday whether to recapitalise or liquidate the parastatal.
“Very little that I can share on this item,” Jooste said when asked about the cabinet discussions.
It was reported that the cabinet committee on treasury, which is deliberating on the RCC matter, could not reach consensus.
It was stated that while Jooste propagated the closure of the RCC, the minister of works and transport, Alpheus !Naruseb, vehemently rejected this option.
The RCC has sought a N$300 million bailout from the government. Jooste argues that it will take more than N$1 billion to rescue the parastatal.
While the verdict is still out on this matter, rumours inside the RCC are that there are talks that the RCC will be restructured “fit for purpose” or that it will possibly be merged with other state-owned enterprises.
A remodelled RCC would, according to these rumours, include the mandate to build and maintain roads – as is the current mandate – but then to “streamline” it to “make commercial sense and be competitive in the industry”.
Rumours of the suggested closure of the RCC are reportedly “not so strong”.
Whatever the future of the RCC is, insiders say the more than 400 employees at the parastatal are in a panic over possible job losses.
CATHERINE SASMAN
“It was not D-Day yet,” said Jooste in response to a news article which suggested that a cabinet committee would decide last Wednesday whether to recapitalise or liquidate the parastatal.
“Very little that I can share on this item,” Jooste said when asked about the cabinet discussions.
It was reported that the cabinet committee on treasury, which is deliberating on the RCC matter, could not reach consensus.
It was stated that while Jooste propagated the closure of the RCC, the minister of works and transport, Alpheus !Naruseb, vehemently rejected this option.
The RCC has sought a N$300 million bailout from the government. Jooste argues that it will take more than N$1 billion to rescue the parastatal.
While the verdict is still out on this matter, rumours inside the RCC are that there are talks that the RCC will be restructured “fit for purpose” or that it will possibly be merged with other state-owned enterprises.
A remodelled RCC would, according to these rumours, include the mandate to build and maintain roads – as is the current mandate – but then to “streamline” it to “make commercial sense and be competitive in the industry”.
Rumours of the suggested closure of the RCC are reportedly “not so strong”.
Whatever the future of the RCC is, insiders say the more than 400 employees at the parastatal are in a panic over possible job losses.
CATHERINE SASMAN
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