RCC partnerships will ‘never betray’ Namibians, Nekundi says

Works and transport minister Veikko Nekundi has pushed back against opposition claims that the Roads Contractor Company (RCC) is undermining Namibian businesses through foreign partnerships, saying government's commitment to local empowerment is non-negotiable.

Nekundi made the remarks in the National Assembly last week in response to Namibian Economic Freedom Fighters (NEFF) member of parliament Longinus Iipumbu, who accused RCC's foreign partnerships of undermining local participation and weakening Namibia's economic sovereignty.

Iipumbu asked what immediate steps government would take to ensure at least 70% of the value of RCC projects remains in Namibian hands.

Nekundi dismissed suggestions the government had abandoned its transformation agenda, telling parliament the Swapo leadership would never compromise the country's interests.

"Be assured, the leadership of the Swapo Party and her-led government will never betray this country," he said, adding that the party and country's president are Namibians and not an "extension of any formation nor a proxy of imposed ideology".

The minister said government is working towards reducing the RCC's reliance on subcontracting major road projects.

He said the RCC, the Roads Authority (RA) and his ministry are finalising a five-year memorandum of agreement aimed at improving the state-owned company's sustainability and execution capacity.

"This agreement aims to strengthen the RCC's capacity to operate sustainably and reduce the company's dependence on subcontracting the majority of the works to local or foreign companies for the execution of road projects," Nekundi said.

He added that RCC has been directed to pursue strategic partnerships for capital projects, with a strong focus on skills transfer, capacity building and local participation.

Forensic audit

Iipumbu also called for a forensic audit of all RCC foreign partnerships dating back to 2015 and requested that the findings be tabled within six months.

Nekundi rejected the proposal, saying that such an exercise would be costly and unrealistic within the proposed time frame.

"Surely you cannot expect a 10-year forensic audit to be conducted in six months, and I will never commit to impossible things," he told parliament.

"Secondly, a forensic audit is very expensive. You cannot just do it because you want to do it. Therefore, provide us with reasonable facts that would warrant or compel an audit."

Iipumbu cited RCC's 2018 partnership with Chinese construction company Nantong Sanjian, claiming that approximately N$2 billion of the N$4.1 billion in tenders awarded through the arrangement went to the foreign company, leaving limited opportunities for Namibian contractors.

He described such arrangements as "economic sabotage", arguing that they drained capital from the local economy while limiting opportunities for Namibian businesses and workers.

Support locals

On calls for legislation compelling state construction entities to partner with majority-Namibian-owned companies, Nekundi said government remains committed to promoting local participation in the sector.

"This government, and in particular the Ministry of Works and Transport, is clear on its stance to promote local participation in the construction industry, and we are on public record on that," he said.

"I must emphasise that the ministry, in fact, the entire government system, acknowledges the importance of promoting local participation in public construction projects."

While suggesting that provisions favouring majority Namibian-owned firms could be incorporated into the Public Procurement Act, Nekundi said his ministry is not responsible for amending the legislation.

Major projects

The minister also rejected calls to dissolve RCC's board and management, saying the available facts do not support claims that the company has failed to empower Namibians.

"I am not sure if the honourable member's assertion is informed by facts," he said.

According to figures presented by Nekundi, all 31 grading unit projects currently awarded to RCC have been subcontracted to locally owned enterprises. In comparison, all five bitumen maintenance unit projects are being executed entirely by RCC.

Although Namibian-registered but foreign-owned enterprises are currently undertaking five capital road projects, Nekundi said more than 90 locally owned small and medium enterprises are participating as subcontractors on those projects.