RCC sells assets

The Roads Contractor Company says it is cleaning up its asset register in difficult times.

16 November 2016 | Infrastructure

The cash-strapped Roads Contractor Company (RCC) is to have an online auction of its construction equipment.

Bidding will open on 17 November and continue until 24 November.

The RCC is advertising 45 categories of equipment, which include 48 road graders, 13 front-end loaders, 11 smooth drum rollers, five diesel tanker trucks, five tractors, a crane truck, a forklift and a tipper

truck.

The online advertisement indicates that the equipment will be sold “as is”.

The sale of assets is non-suspensive, which means that the auctioneer will not allow time for potential buyers to arrange mortgage finance after the fall of the hammer.

The sale is also not subject to any feasibility or any other condition required by the buyer.

Some of the equipment is old, dating back to the 1960s, ''70s and ''80s. The majority of the stock, though, dates back to the early 1990s up to 2012. Some are in working condition while some are stripped.

The acting chief executive officer of the RCC, Tino !Hanabeb, said the auction is being held to “clean up the asset register” of the parastatal.

He said a lot of the equipment is scattered across the country, old and would otherwise end up as scrap. He did, however, admit that the auction was also necessitated by the financial challenges the company is facing.

!Hanabeb added that it would not be helpful to keep some of the equipment since the RCC''s equipment use is on average 180 to 190 hours per month.

“If it is not helping us why would we keep it?” he said.





At the announcement of the controversial 150-day turnaround strategy for RCC in January 2015, the then acting CEO, Pieter Oosthuizen, said a reassessment of the company''s plant and equipment found that these had not been properly maintained.

A lack of funds has been a perennial problem for the RCC since its inception in 1999 because, said former insiders, the parastatal was established without any funding from central government.

Oosthuizen in his turnaround declaration also mentioned that the RCC had struggled to operate at an optimal level because of undercapitalisation and declining revenue streams since 2012.

Sources say the RCC cannot fulfil its mandate because it is placed at the mercy of joint ventures since the bulk of road and other construction jobs are contracted out.

The RCC was created as a public entity to “undertake work relating to the construction or maintenance of roads or any other construction works”, which include buildings, bridges, waterworks, dams, reservoirs, tunnels, canals, aqueducts, irrigation works, harbours, aerodromes and railway construction.

The sources added that most of the joint-venture partners, primarily well-connected Namibians partnering with Chinese outfits, are in essence pulling the strings and in most cases bring in their own employees and equipment.

The sources added that the RCC has no oversight over the joint-venture partners, which are registered under the Companies Act and therefore cannot be audited by it.





CATHERINE SASMAN

Similar News

 

Omusati teachers' housing in limbo

6 days ago - 24 April 2017 | Infrastructure

The education ministry is waiting on the High Court's decision to decide what is to be done regarding the 34 housing units for teachers that...

Elongo lyondjila pokati koVenduka-Okahandja tali pula komeho

1 week ago - 21 April 2017 | Infrastructure

Omunambelewa Omukuluntu-pitithi gwehangano lyoRoads Authority (RA) Conrad Lutombi okwa popi kutya oshitopolwa oshititatu shiilonga yondjila ndjoka tayi longwa pokati kaVenduka naKahandja osha manithwa.Lutombi okwa popi...

Govt exceeded housing targets - Geingob

2 weeks ago - 12 April 2017 | Infrastructure

President Hage Geingob says government is on track with its Harambee Prosperity Plan targets, highlighting that 7 754 plots have been serviced countrywide, exceeding the...

NamWater addresses water security

1 month - 25 March 2017 | Infrastructure

NamWater has started building a water reservoir at Oshakati to address water shortages in areas dependent on the Oshakati water purification plant.The water utility says...

Otjinene-Okamatapati road opened

1 month - 20 March 2017 | Infrastructure

The new tarred road between Otjinene and Okamatapati was inaugurated by President Hage Geingob last week.The road, a section of the Gobabis-Grootfontein road which is...

Omagumbo goMass Housing ga teyagulwapo moSwakop

1 month - 14 March 2017 | Infrastructure

Omagumbo gomwaalu gwontumba ngoka ga tungwa kohi yopoloyeka yoMass Husing, kehangaano lyoDelta Group Holdings (DGH) mondoolopa yaSwakopo, oga teyagulwapo shoka oga tungwa pamuthika gwopevi no...

Municipality pulls down shoddy houses

1 month - 13 March 2017 | Infrastructure

Several prefabricated Mass Housing homes constructed by Delta Group Holdings (DGH) in Swakopmund are being demolished due to poor workmanship. Reports quote urban and rural...

Lutombi confident about completion of northern roads

1 month - 10 March 2017 | Infrastructure

Roads Authority (RA) chief executive officer Conrad Lutombi is confident that the company will deliver the long-awaited roads in the north by the end of...

Ondonga princess loses N$19m tender

1 month - 08 March 2017 | Infrastructure

The Offshore Development Company (ODC) has revoked a construction tender awarded in 2015 to Katrina Enterprises, a company owned by Katrina Elifas, the daughter of...

No action on ballooning budget for oil storage

1 month - 07 March 2017 | Infrastructure

CATHERINE SASMAN Cabinet secretary George Simataa and Anti-Corruption Commission (ACC) director Paulus Noa are accused of not taking steps against...

Latest News

NAMAs kick off

1 day - 29 April 2017 | Art and Entertainment

The first evening of the Namibia Music Awards (NAMAs) took place at the coastal town of Walvis Bay last night, with Elemotho winning the Lifetime...

Huang gets green light for...

2 days ago - 28 April 2017 | Government

Businessman and money-laundering suspect Jack Huang's company has landed yet another huge deal, which will include the servicing of over 500 plots and construction of...

Suspended sentence for teen who...

2 days ago - 28 April 2017 | Justice

ILENI NANDJATOAn emotional scene played out at the Oshakati Magistrate’s Court as a father and son reunited in front of a magistrate following a court...

Be responsible, mining industry urged

2 days ago - 28 April 2017 | Business

B2Gold Namibia's managing director, Mike Dawe, has advised that the government should not become involved in mining.He made the comment at the just-concluded mining expo...

Shaningua claims self-defence

2 days ago - 28 April 2017 | Justice

The man accused of the murder of a Finnish national in Windhoek last year maintains that after a revving car raced towards him he shot...

Changes at TransNamib

2 days ago - 28 April 2017 | Transport

Hippy Tjivikua's reign as acting TransNamib CEO effectively ended on Wednesday, a day before he claimed that he was not responsible for the mess the...

Concern over Lotteries Bill

2 days ago - 28 April 2017 | Government

A lack of detail on what would be done with the proceeds of a state lottery, and concerns about whether it would fan the growing...

Disability Council urges compliance

2 days ago - 28 April 2017 | Government

The National Disability Council of Namibia (NDCN) has reminded all public and private entities to complete the annual disability monitoring questionnaires before the end of...

We need a valuable workforce

2 days ago - 28 April 2017 | Opinion

Muammar Gaddafi said in his Green Book “exploitation is caused by need. Need is an intrinsic problem and conflict is initiated by the control of...

Load More