RCC sued for N$101m debt

Bank Windhoek has dragged the beleaguered Roads Contractor Company (RCC) to court for debts totalling over N$101 million, in a total of 35 separate claims.This is despite undertakings by the RCC board and its line ministry, the ministry of works, that a second rescue plan was being finalised in September last year. At the time, board chairman Obren Sibeya told Namibian Sun: “The RCC is at an advanced stage of finalising its rescue plan, which will first be discussed by the full board, the shareholder and thereafter communicated to all other stakeholders.” The first rescue plan was a proposed cash injection of N$580 million from Chinese construction firm Jiangsu Nantong Sanjian. Repayment would have taken place in the form of participation by the Chinese company in current and other identified future projects for “five years or earlier”. The 47% stake that would have gone to the Chinese firm in these projects was worth an estimated N$2 billion. Government pulled the plug on that deal in May last year. The parastatal's money woes come a long way. To recover funds, the company held an online auction of its “old and obsolete” equipment in November 2016. By September 2017, cabinet resolved to place the company under judicial management, but the bill is yet to be tabled in parliament. Had it been passed, the RCC would have been granted a stay in legal proceedings from its creditors.In its particulars of claim, filed on 8 March this year, the bank details eight claims stemming from suspensive sales agreements signed in May 2013, 16 more signed in June of the same year and another four signed in September 2013, all for a variety of equipment including 24 graders, a trailer, and three trucks.In claims 29 and 30, the bank says an overdraft facility of N$2 million was taken in April 2018 along with another of N$79.4 million. Both became due and payable on 25 May last year, a little more than a month after being taken.In claim 31, the bank says it advanced, on 21 August 2014, a loan of N$15.9 million, and another of N$18.1 million on 17 September 2013, making up claim 32. For claims 33 and 34, the bank says it advanced, on 27 November 2008, two separate loans of N$35.9 million and N$22.5 million. The final claim, claim 35, was for a mortgage loan of N$3.4 million, signed on 16 May 2012.For the first 28 claims, Bank Windhoek asks for interest at its prime rate, calculated from July last year, as well as costs on an attorney and own client scale, as agreed upon. For claims 29 to 34, totalling more than N$97.3 million, the bank asks for interest at its prime rate from 21 January this year, as well as costs. For claim 35, the final claim totalling N$3 393 261.45, the bank asked for interest as calculated on its mortgage lending rate from 21 January 2019.Moreover, on all the claims, the bank asked for an order declaring unit 4 at Park Mignon as well as the RCC head office at 140 Lazarett Street, measuring 5.3617 hectares, executable.Yesterday, before Judge Shafimana Ueitele, the parties, who had attended mediation, informed the court that a second session, in a bid to settle the matter, would take place on 8 July, and asked the court to postpone the matter to 30 July. Frans Kwala from Kwala and Co. Incorporated appears for the RCC, while Elize Yssel from Engling, Stritter and Partners appears for Bank Windhoek.YANNA SMITH

RCC sued for N$101m debt

Comments

Namibian Sun 2026-01-02

Please login to leave a comment

RCC sued for N$101m debt

Comments

Namibian Sun 2026-01-02

Please login to leave a comment

Subscription Required to Access Content ×

Login

Subscription Required to Access Content