RCC attempts a comeback

The leadership of the parastatal admits that the company is going through a turbulent phase but has expressed confidence that it will grow into a significant contributor to the country''s economy.

29 November 2016 | Infrastructure

The new board and management of the Roads Contractor Company (RCC) intend to turn the parastatal from a historic liability to a shareholder''s investment within the next three to five years.

“As a public enterprise we need to and have to show our corporate responsibility and accountability to our shareholders, be it our employees, customers, our shareholder [government], our financiers, the public at large,” says board chairman Fritz Jacobs.

He says the RCC is not supposed to be a burden to the shareholder but rather a profitable, sustainable, responsible and dividend-paying national contractor.

To date, the RCC has not been a position to pay over any dividends to the government and its last finalised audited financial report was for the 2012/13 financial year.

The new board and management have, however, prepared audit reports for the subsequent years over the last 12 months, Jacobs says.

In the past year the RCC has put in place and developed a number of initiatives, plans, and implemented and pursued several strategic efforts.

These included putting in place board governance structures, finalising a five-year strategic business plan and restructuring the organisation to address its mandate.

The restructuring, however, is not the turnaround strategy that the former acting general manager, Pieter Oosthuizen, had put in place, but an attempt to start afresh, Jacobs says.

“We look at everything afresh because we cannot allow the process that has been in place in the past to just be adjusted because for 15 years they have not produced anything. We have to get our house in order.”

He says the RCC is in the process of modernising its plant equipment and fleet after a recent auction of old and obsolete equipment.

The parastatal intends to improve and diversify its revenue base.

But it faces real historical challenges, which affect its financial situation and which meant that over the last five months it was under severe pressure to pay salaries and creditors.



Bold plans

Notwithstanding its difficulties, the RCC has announced that it intends to bolster its financial position from a net liability of about N$256 million to a net asset base of N$900 million over the next three to five years.

It is therefore requesting a one-off investment of N$300 million by the government.

“This is not the only possible option for RCC, if all possible options of turnaround and transformation can be considered. However, time is of the utmost essence and shareholder appreciation of the historic challenges we face is important,” Jacobs says.

He says the RCC is an operating company which generates revenue and that can continue to grow its revenue from operations on a sustainable and commercial basis without continued bailing out by the government. The RCC is therefore setting its sights on becoming a bigger player in the road, infrastructure and housing development sectors.

Jacobs says the company has realigned itself over the last 12 months to improve its prospects of doing business. It is participating in projects valued from N$750 million to about N$2.6 billion. Of the N$2.6 billion worth of bids submitted, about N$800 million has been awarded.

This, says Jacobs, means that the RCC is starting to establish a positive trend in its revenue pattern.

If things turn for the better for the beleaguered company, it intends to recruit additional engineers, as well as commercial and other technical staff.

Jacobs says while it is true that the company is going through a turbulent phase, the board and management are confident it will grow into a significant and positive company.

CATHERINE SASMAN

Similar News

 

N$1bn Chinese grant for airport road

1 week ago - 13 April 2018 | Infrastructure

The Chinese government will provide N$1.1 billion in financing for the construction of the road leading from Windhoek to Hosea Kutako International Airport.In an exclusive...

Shift focus from housing to tenure

1 week ago - 12 April 2018 | Infrastructure

An urgent reframing on the way the authorities are addressing the issue of housing in order to address informal settlement growth is needed.In a review...

Onus rests on RCC board to avert takeover

1 week ago - 11 April 2018 | Infrastructure

The current board of the Roads Contractor Company will have to prove beyond reasonable doubt that they have a turnaround strategy in place in order...

NHE to construct 50 houses at Okahao

1 week ago - 10 April 2018 | Infrastructure

The National Housing Enterprise (NHE) will construct 50 houses for low- and middle-income groups at Okahao in the Omusati Region.This was announced on Friday at...

China eyes airport upgrade

2 weeks ago - 06 April 2018 | Infrastructure

ELLANIE SMIT Namibia and China are discussing the possibility of Chinese financing for upgrading Windhoek’s Hosea Kutako International Airport.President Hage Geingob briefed China about the...

Rain destroys Kunene road

1 month - 19 March 2018 | Infrastructure

Heavy rain has washed away portions of the Opuwo-Omakange road in the Kunene Region. The Roads Authority this afternoon confirmed that the road was extensively...

Oompangela dhokutunga omagumbo tadhi ndopa

1 month - 15 March 2018 | Infrastructure

Uuyelele mboka owa hololwa molopota ompe, ya landula komapekaapeko omape ngoka ga ningwa. Omapekaaapeko ngoka oga holola kutya otashi tsikile nokukala ondjodhi itayi yi...

Housing misery

1 month - 14 March 2018 | Infrastructure

A new study on housing provision and affordability in Namibia has delivered a scathing indictment of the government's flawed efforts to address the housing crisis...

Residents fume over potholed roads

1 month - 12 March 2018 | Infrastructure

Residents of Oshakati's Ehenye township are complaining about the bad roads they have to endure on a daily basis, which they say are causing damage...

Gobabis leads way in upgrading informal settlement

1 month - 01 March 2018 | Infrastructure

The Gobabis municipality, in partnership with the Shack Dwellers' Federation of Namibia and the Namibia Housing Action Group, has managed to turn the Freedom Square...

Latest News

Unam confers posthumous PhD

1 hour ago | Education

ILENI NANDJATOA University of Namibia lecturer who died last year was honoured with a posthumous doctor of philosophy (PhD) degree during the Unam northern campus’s...

NTTU commands all taxis to...

1 hour ago | Transport

JANA-MARI SMITH Namibia Transport and Taxi Union (NTTU) boss Werner Januarie has urged all Windhoek taxi drivers to join a mass taxi strike on Monday,...

Purpose-eating allocation for trade

1 hour ago | Economics

Ndama Nakashole - There are no funds allocated towards the government’s equipment aid scheme this year, whose aim is to provide production machinery and equipment...

Tsumeb protest disrupts court proceedings

1 hour ago | Justice

CATHERINE SASMANMore than 100 angry protesters at Tsumeb nearly brought the magistrate’s court’s proceedings to a standstill yesterday when they descended on the court demanding...

Nghiwete defiant

1 hour ago | Government

CATHERINE SASMAN The suspended CEO of the Namibia Students Financial Assistance Fund (NSFAF), Hilya Nghiwete, has demanded through her lawyer...

Africa briefs

1 hour ago | Economics

Mnangagwa says new investment law to open economyZimbabwe is working on a new investment law to open up the economy to foreign investors, President Emmerson...

Rape accused doctor gets N$15...

1 hour ago | Justice

A doctor accused of raping a 20-year-old woman in the Ongwediva area was yesterday granted bail of N$15 000 by the Oshakati Magistrate's Court. ...

Job portal fails

1 hour ago | Government

Only 20% of the 15 569 jobseekers who were registered on the Namibia Integrated Employment Information System (NIEIS) during the 2017/18 financial year found jobs.According...

Hanse-Himarwa on trial next month

1 hour ago | Justice

Education minister Katrina Hanse-Himarwa will go on trial on corruption charges at the end of May.Hanse-Himarwa yesterday appeared before the Windhoek High Court, where she...

Load More