Salary woes hit RCC workers

Workers of the technically bankrupt Roads Contractor Company are panicking about unpaid salaries and some are not bothering to turn up for work anymore.

02 October 2019 | Government

Workers of the embattled Roads Contractor Company claim that government, through the ministries of finance and works, stopped paying their salaries at the end of August.

The workers allege that the state-owned enterprise's management is doing little to ensure that their salaries are paid.

According to the workers, they were informed that there was no money for their September salaries.

“We have not been paid our salaries until today. What is management doing about the situation? There have been no discussions from management regarding our salaries,” alleged an employee who spoke on condition of anonymity.

According to the employee, there was an understanding that the ministries of works and finance would be responsible for the salaries of RCC workers.

The RCC was placed under judicial management in September 2017 to avoid the forfeiture of its assets. Its future has become increasingly uncertain as the Cabinet Committee on Treasury debates its fate as a state-owned enterprise.

it is alleged that employees were not showing up for work anymore, as there was nothing for them to do and they were not being paid.

This was particularly true for employees who commute to Windhoek from neighbouring towns like Rehoboth and Okahandja, the source said.

Another source, said he did not know what the arrangements were for the month of September.

“Normally I would consult with an administrator at the ministry of works for the payment of salaries. This is to ensure that the workers' salaries are paid on time. I do however not know what the arrangements are for this month and can confirm we have not been paid for this month,” the source said.

When contacted for comment this week, RCC acting CEO Gerson Karaerua confirmed that there was a delay in salary payments. In a memo to RCC employees on 25 September, Karaerua had stated: “This communiqué serves to notify you that salary payment for September 2019 will be delayed due to an internal technical challenge that is being experienced currently. Management is hopeful that this technical challenge will be solved in due course.”

Works ministry spokesperson Julius Ngweda had told Namibian Sun in July that the ministry would no longer be responsible for the salaries of RCC workers.

When he was asked about the latest development, he asked for more time before making a comment on the matter.

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