RCC liquidation about 'egos'
The RCC board says it is strongly opposed to those calling for the company to consider filing for liquidation.
Roads Contractor Company (RCC) chairman Fritz Jacobs has described calls to liquidate the embattled parastatal as “egotistical” and says it is not necessary given his board's commitment to turn the RCC into a profit-making public enterprise.
According to him, more would be lost in potential revenue if government proceeds with plans to liquidate the RCC and it would be best if the day-to-day running of the state contractor would be left in the hands of management.
“We could have chosen to serve on other boards, why will we give ourselves grey hairs by choosing to serve on the RCC board if we did not believe we could turn the institution around?” asked Jacobs.
“If you say you want to close the RCC, who should take the money? The solution to the RCC's problems is a matter of ego and the economic situation is being used to instil fear. The RCC liquidation is about egos. Another aspect is the real cost of recapitalising the RCC versus liquidation. The RCC has a lot of assets which are worth a lot of money.”
A profitable RCC was also good to government, he said. “Government needs a strong RCC to distribute construction profits locally,” he said.
He added the RCC was on a course to recovery and that good governance structures had been put in place that would ensure its long-term survival.
“We have put in place good governance structures and put board committees in place,” said Jacobs.
Meanwhile, he refuted a recent news report that suggested the RCC was looking for N$5 billion as a means to strengthen its balance sheet through investments in various residential and commercial properties.
According to him, although the RCC was eyeing investments in the property space, it was nowhere near the N$5 billion alluded to.
“The RCC does not have a N$5 billion plan. We have big goals and we need N$300 million and we will repeat that until we are blue in the face,” said Jacobs, justifying planned commercial property developments. “Even banks have headquarters to strengthen their balance sheets,” he said.
He said while the RCC had made a submission to get N$70 million from treasury, it has not yet seen a cent.
OGONE TLHAGE
According to him, more would be lost in potential revenue if government proceeds with plans to liquidate the RCC and it would be best if the day-to-day running of the state contractor would be left in the hands of management.
“We could have chosen to serve on other boards, why will we give ourselves grey hairs by choosing to serve on the RCC board if we did not believe we could turn the institution around?” asked Jacobs.
“If you say you want to close the RCC, who should take the money? The solution to the RCC's problems is a matter of ego and the economic situation is being used to instil fear. The RCC liquidation is about egos. Another aspect is the real cost of recapitalising the RCC versus liquidation. The RCC has a lot of assets which are worth a lot of money.”
A profitable RCC was also good to government, he said. “Government needs a strong RCC to distribute construction profits locally,” he said.
He added the RCC was on a course to recovery and that good governance structures had been put in place that would ensure its long-term survival.
“We have put in place good governance structures and put board committees in place,” said Jacobs.
Meanwhile, he refuted a recent news report that suggested the RCC was looking for N$5 billion as a means to strengthen its balance sheet through investments in various residential and commercial properties.
According to him, although the RCC was eyeing investments in the property space, it was nowhere near the N$5 billion alluded to.
“The RCC does not have a N$5 billion plan. We have big goals and we need N$300 million and we will repeat that until we are blue in the face,” said Jacobs, justifying planned commercial property developments. “Even banks have headquarters to strengthen their balance sheets,” he said.
He said while the RCC had made a submission to get N$70 million from treasury, it has not yet seen a cent.
OGONE TLHAGE
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