RCC fails to pay workers

THE Roads Contractor Company has not been paying its workers on time since May this year, citing unspecified technical problems.

Usually, the company pays salaries on the last Friday of each month.

In an internal memo dated 29 July and written by the chief executive officer, Tino !Hanabeb, the road contractor notified the staff of another delay.

“Kindly be informed that the delayed salary payments for July 2016 will be sorted on Tuesday 2 August 2016. We have assurance that the technical problem will be rectified by that time,” reads !Hanabeb’s note.

But as of yesterday, more than 480 full-time and contract-based workers had not been paid.

Hanabeb was said to be in a meeting yesterday, and could not be reached for comment. He also did not respond to text messages left on his phone. Works minister Alpheus !Naruseb yesterday said he was aware of the RCC situation, although he said it is not a crisis.

“You want me to conform to your inconsiderate views aimed at sensationalising the issue!” !Naruseb fumed.

He then referred questions to !Hanabeb, or the ministry’s permanent secretary Willem Goeiemann.

!Naruseb could not say whether the RCC had approached the ministry for a financial bailout, arguing that Goeiemann would be in a better position to answer those questions.

“Are you expecting me to override the duties of the accounting officer?” the minister angrily asked.

Public enterprises minister Leon Jooste, under whose ministry the RCC now falls, referred questions to !Naruseb, saying the works ministry is still responsible.

A source told that the company owes the Receiver of Revenue about N$300 million in income taxes.

Government has tried to bail out the company by awarding two major roads contracts to it, including the Gobabis-Aranos road and the Henties Bay-Swakopmund road, whose total combined value is N$1 billion.

A worker, who preferred anonymity, said the company has also failed to pay medical contributions.

The RCC’s financial woes have been in the public domain since 2014, with reports that it has been plunged into financial turmoil, despite getting numerous road construction tenders from its line ministry of works as a bailout strategy.

The Public Service Union of Namibia’s secretary general Victor Kazonyati said he met management on Monday over the issue.

“They said they were working on the problem. They indicated that things will be worked out with the bank and the finance ministry this week,” he stated.

Kazonyati said management had promised to communicate to them once the problem had been resolved, but they still have not heard from them.

“We decided to wait, and if they don’t get back to us by the end of this week, we will have to go back to them to find out where the delay is,” he stated.

Kazonyati said the company claimed there was an outstanding amount from the Ministry of Finance which was not paid over.