RCC chief quits

SUSPENDED Roads Contractor Company CEO Kelly Nghixulifwa has “relinquished his position” – by mutual agreement – some four months after he was suspended in the wake of a forensic audit at the beleaguered civil engineering parastatal.

In a brief statement issued by the board of directors late on Friday, RCC Chairman Otto Shikongo announced that Nghixulifwa’s resignation, effective from January 1 2007, was by mutual agreement. The statement also said it was in the interest of the company “as the company looks towards establishing itself firmly as the premier civil engineering entity delivering quality services in Namibia”.Nghixulifwa’s lawyer, Coline Bazuin of GF Koepplinger and Associates yesterday also confirmed that her client had signed a settlement on Thursday afternoon last week.A legal motion withdrawing the matter from the Labour Court was filed on Friday, Bazuin said.Bazuin declined to disclose any details on Nghixulifwa’s settlement deal, citing client confidentiality.Labour industry sources suggested he could collect as much as three month’s payout of his N$100 000-a-month remuneration package.The RCC Board suspended Nghixulifwa on August 23 to clear the way for an investigation into, amongst others, questions surrounding the N$54 million B-1 City development, under construction on Erf 10485 in Katutura next to the Swapo Party’s head offices.On November 1, Nghixulifwa was formally charged with eight main and 12 alternative charges, including two counts of dishonesty, four counts of “gross negligence”, a count of failing to obey the RCC’s own rules, procedures or regulations, and a count of recklessness.He denied all the charges.Nghixulifwa’s resignation now means that half the top management of the RCC, or four out of eight top positions, will have to be replaced as a forensic audit by Ernst & Young into alleged mismanagement at the troubled former Roads Department takes its toll.The positions of GM: Finance and Administration, previously held by Rudi Saunderson, as well as that of GM: Human Resources, held by Club Pamodzi part-owner Brian Nalisa, were both advertised late last year.The GM: Engineering (Construction) position, filled in an acting capacity since June by a Zimbabwean expatriate, was also advertised at the same time.This only leaves the General Managers of Business Development (Noks Katjiuongua, now Acting CEO), International Business Development (Engelhardt Haimbodi) and those of GM: Maintenance and GM: Plant and Equipment in place.The RCC late last year also placed ads asking for new tenders from auditing firms.THE ROAD TO SETTLEMENT After forcing several technical delays in internal disciplinary hearings in late November, Nghixulifwa’s lawyers on December 1 won a legal reprieve for their client when the High Court ruled it would first have to hear the merits of the case before allowing the RCC internal disciplinary hearings to proceed.Bazuin last week argued that by accepting a negotiated settlement, her client was by no means avoiding having to answer to those charges.Preliminary investigations indicated that Nghixulifwa had used a N$5 million RCC facility from Bank Windhoek to pay for the land on behalf of /Ae//Gams, and then committed a further N$15 million to the same development without securing legal guarantees by means of a notarial bond over Erf 10485.B-1 CITY Future ownership of the B-1 City development – owned by a small group of BEE elite but paid for so far for by the RCC – now also appears to be in the balance.Well-placed sources said the RCC would now try and negotiate a deal on Erf 10485, where the nominal owner and principals of /Ae//Gams Engineering (Pty) have yet to contribute a cent to accumulated development costs – estimated to now be in excess of N$22 million./Ae//Gams is effectively controlled via two family trusts belonging to Founding President Sam Nujoma’s son-in-law David Imbili (30%) and former City of Windhoek official Hafeni Nghinaamwaami (30%).Other listed shareholders are businesswoman Anna Ndoroma (30%) and auditors Lorna and Rochele Cilliers (10%) of BDO Spencer Steward (Namibia), who are also the auditors of /Ae//Gams Engineering.All of them have denied any alleged impropriety in the strongest possible terms.* John Grobler is a freelance journalist; 081 240 1587The statement also said it was in the interest of the company “as the company looks towards establishing itself firmly as the premier civil engineering entity delivering quality services in Namibia”.Nghixulifwa’s lawyer, Coline Bazuin of GF Koepplinger and Associates yesterday also confirmed that her client had signed a settlement on Thursday afternoon last week.A legal motion withdrawing the matter from the Labour Court was filed on Friday, Bazuin said. Bazuin declined to disclose any details on Nghixulifwa’s settlement deal, citing client confidentiality.Labour industry sources suggested he could collect as much as three month’s payout of his N$100 000-a-month remuneration package.The RCC Board suspended Nghixulifwa on August 23 to clear the way for an investigation into, amongst others, questions surrounding the N$54 million B-1 City development, under construction on Erf 10485 in Katutura next to the Swapo Party’s head offices.On November 1, Nghixulifwa was formally charged with eight main and 12 alternative charges, including two counts of dishonesty, four counts of “gross negligence”, a count of failing to obey the RCC’s own rules, procedures or regulations, and a count of recklessness.He denied all the charges.Nghixulifwa’s resignation now means that half the top management of the RCC, or four out of eight top positions, will have to be replaced as a forensic audit by Ernst & Young into alleged mismanagement at the troubled former Roads Department takes its toll.The positions of GM: Finance and Administration, previously held by Rudi Saunderson, as well as that of GM: Human Resources, held by Club Pamodzi part-owner Brian Nalisa, were both advertised late last year.The GM: Engineering (Construction) position, filled in an acting capacity since June by a Zimbabwean expatriate, was also advertised at the same time.This only leaves the General Managers of Business Development (Noks Katjiuongua, now Acting CEO), International Business Development (Engelhardt Haimbodi) and those of GM: Maintenance and GM: Plant and Equipment in place.The RCC late last year also placed ads asking for new tenders from auditing firms. THE ROAD TO SETTLEMENT After forcing several technical delays in internal disciplinary hearings in late November, Nghixulifwa’s lawyers on December 1 won a legal reprieve for their client when the High Court ruled it would first have to hear the merits of the case before allowing the RCC internal disciplinary hearings to proceed.Bazuin last week argued that by accepting a negotiated settlement, her client was by no means avoiding having to answer to those charges.Preliminary investigations indicated that Nghixulifwa had used a N$5 million RCC facility from Bank Windhoek to pay for the land on behalf of /Ae//Gams, and then committed a further N$15 million to the same development without securing legal guarantees by means of a notarial bond over Erf 10485. B-1 CITY Future ownership of the B-1 City development – owned by a small group of BEE elite but paid for so far for by the RCC – now also appears to be in the balance.Well-placed sources said the RCC would now try and negotiate a deal on Erf 10485, where the nominal owner and principals of /Ae//Gams Engineering (Pty) have yet to contribute a cent to accumulated development costs – estimated to now be in excess of N$22 million./Ae//Gams is effectively controlled via two family trusts belonging to Founding President Sam Nujoma’s son-in-law David Imbili (30%) and former City of Windhoek official Hafeni Nghinaamwaami (30%).Other listed shareholders are businesswoman Anna Ndoroma (30%) and auditors Lorna and Rochele Cilliers (10%) of BDO Spencer Steward (Namibia), who are also the auditors of /Ae//Gams Engineering.All of them have denied any alleged impropriety in the strongest possible terms.* John Grobler is a freel
ance journalist; 081 240 1587