RCC’s 254 workers still paid from govt contingency fund
19 October 2020 | Labour
Employees of the Roads Contractor Company (RCC) continue to be paid from the government’s contingency fund, with Cabinet yet to reach a decision about its future. The company currently employs 254 employees.
A total of N$48.6 million has been paid out to the company from the contingency fund so far this year. Past transfers from the government to the RCC include a N$42 million transfer made between 2017 and 2018 to service its wage bill. This was contained in a spending document accompanying the 2018/19 budget documents.
Its acting CEO, Seth Herunga, confirmed that the company was still reliant on government.
“Cabinet made a decision for government to advance a salary subsidy to RCC until such time that it [government] has made a final decision on the future status of the company,” he said.
Despite its dependence on government, Herunga said the company had managed to get involved in significant projects which involved construction of tarred roads between Onderombapa and Aranos via Aminuis and from Henties Bay to Uis, Herunga said.
“Management is taking all the necessary steps to revive the operations of the company; in due course the company will start to execute two additional projects. Discussions on the projects are at advanced stage and the company is optimistic to land these two projects,” Herunga said.
The company was expected to be placed under judicial management as far back as 2017. This would ensure that its assets would not be attached while a rescue plan to revive its operations could be worked on.