RCC evicted from office over N$6m
Things are looking even more dire for the company already languishing in judicial management after its employees were locked out due to a growing rental bill of a building it previously owned.
OGONE TLHAGE
WINDHOEK
When Roads Contractor Company (RCC) employees showed up for work yesterday, they were denied access to their office building in an incident that has laid bare problems the company is seized with.
The offices were locked because RCC failed to pay its landlord and sister public enterprise, Namibia Post and Telecommunications Holdings (NPTH), rent for the building previously owned by RCC, but which became NPTH property after rescuing it from repossession by Bank Windhoek over debts.
The RCC head office, used as collateral for a loan the company took from Bank Windhoek, was attached by the bank in 2018, but NPTH stepped in, paying N$190 million to rescue the property and prevent it from being repossessed.
The building was then rented back to RCC, which has allegedly failed to make a single payment in this regard.
Numerous requests for the company to pay fell on deaf ears, Namibian Sun is told.
NPTH CEO Kristofin Itembu confirmed that the RCC had been locked out and cited the unpaid rent as reason. The RCC owes NPTH N$6.2 million.
“I cannot comment on the matter, it is with the legal department currently,” she further said.
The premises were valued at N$100 million in 2019.
‘Nightmare’
When approached for comment, RCC acting CEO Seth Herunga said the matter was in the hands of the company’s lawyers.
“NPTH has closed the building. The entire RCC employees were locked out until further notice.”
Officials of the beleaguered entity had lamented the lack of support from government and pointed to rescue plans presented to Cabinet to save the ailing entity.
“Government is not paying attention to RCC; the solution was on the table,” officials – who spoke on condition of anonymity – told Namibian Sun.
The RCC’s former board chairperson Fritz Jacobs presented government with a rescue plan that would avail the company N$570 million in the form of a loan from Chinese company Nantong Sanjian. In exchange, Nantong would have a stake in bids worth N$4.1 billion awarded to the RCC.
“The Chinese solution was the best solution; the best way to sustain ourselves. It is just a nightmare now,” the officials said.
Salary conundrum
They also decried government funding that had been provided to the RCC to help pay for salaries.
“The budget provided for is only for four months, but they forget that there is a Cabinet resolution that RCC employees should be paid until a lasting solution has been found.”
Namibian Sun previously reported that the company’s employees had at one stage been paid from government’s contingency fund. The fund is meant for emergencies.
“Until what time will it sustain us? Government must make a final decision on liquidation,” the sources said.
Public enterprise minister Leon Jooste said consultations were ongoing regarding RCC.
“We are engaged in consultations to identify a long-term solution and will inform stakeholders in due time,” he said.
WINDHOEK
When Roads Contractor Company (RCC) employees showed up for work yesterday, they were denied access to their office building in an incident that has laid bare problems the company is seized with.
The offices were locked because RCC failed to pay its landlord and sister public enterprise, Namibia Post and Telecommunications Holdings (NPTH), rent for the building previously owned by RCC, but which became NPTH property after rescuing it from repossession by Bank Windhoek over debts.
The RCC head office, used as collateral for a loan the company took from Bank Windhoek, was attached by the bank in 2018, but NPTH stepped in, paying N$190 million to rescue the property and prevent it from being repossessed.
The building was then rented back to RCC, which has allegedly failed to make a single payment in this regard.
Numerous requests for the company to pay fell on deaf ears, Namibian Sun is told.
NPTH CEO Kristofin Itembu confirmed that the RCC had been locked out and cited the unpaid rent as reason. The RCC owes NPTH N$6.2 million.
“I cannot comment on the matter, it is with the legal department currently,” she further said.
The premises were valued at N$100 million in 2019.
‘Nightmare’
When approached for comment, RCC acting CEO Seth Herunga said the matter was in the hands of the company’s lawyers.
“NPTH has closed the building. The entire RCC employees were locked out until further notice.”
Officials of the beleaguered entity had lamented the lack of support from government and pointed to rescue plans presented to Cabinet to save the ailing entity.
“Government is not paying attention to RCC; the solution was on the table,” officials – who spoke on condition of anonymity – told Namibian Sun.
The RCC’s former board chairperson Fritz Jacobs presented government with a rescue plan that would avail the company N$570 million in the form of a loan from Chinese company Nantong Sanjian. In exchange, Nantong would have a stake in bids worth N$4.1 billion awarded to the RCC.
“The Chinese solution was the best solution; the best way to sustain ourselves. It is just a nightmare now,” the officials said.
Salary conundrum
They also decried government funding that had been provided to the RCC to help pay for salaries.
“The budget provided for is only for four months, but they forget that there is a Cabinet resolution that RCC employees should be paid until a lasting solution has been found.”
Namibian Sun previously reported that the company’s employees had at one stage been paid from government’s contingency fund. The fund is meant for emergencies.
“Until what time will it sustain us? Government must make a final decision on liquidation,” the sources said.
Public enterprise minister Leon Jooste said consultations were ongoing regarding RCC.
“We are engaged in consultations to identify a long-term solution and will inform stakeholders in due time,” he said.
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