Oosthuizen resigns from RCC

26 June 2015 Author  

front RCC 26 juneBeleaguered Roads Contractor Company General Manager (RCC) Pieter Oosthuizen has submitted his third resignation in three months.

 

Oosthuizen began the series of resignations in April this year when he stepped down as acting CEO of RCC citing personal reasons.

He then resigned as Chairman of the TransNamib Board of Directors on 12 June 2015, and last Wednesday he quit from his general manager’s position.

Oosthuizen sent letters to both the Minister of Works and Transport Alpheus !Naruseb and Minister of Public Enterprises Leon Jooste announcing his resignation.

Jooste confirmed Oosthuizen’s resignation on Thursday, and stated that the RCC general manager had copied him into correspondence addressed to !Naruseb

“Yes I have seen the resignation letter which states that his resignation becomes effective 30 June 2015, which is next week, but there were reasons provided for this,” Jooste explained

Sources say that Oosthuizen’s resignation was prompted by a heated meeting he had with minister !Naruseb two weeks ago.

The minister is said to have grilled Oosthuizen during the meeting on the manner in which he had run RCC.

RCC made headlines this year after police were called in as workers demonstrated at the company’s office protesting over incorrect and delayed salary payments.

The company also attracted negative publicity following the announcement of a proposed restructuring and retrenchment plan.

RCC’s long overdue diesel bill resulted in the supplier freezing the company’s account, which meant that the company could not purchase any further diesel on credit.

The Roads Contractor Company also owes various suppliers millions in outstanding payments.

Oosthuizen’s resignation draws the curtains on his life after several months of public scrutiny and negative publicity.

The Anti-Corruption Commission (ACC) was forced to launch an investigation into his credentials after it emerged that his qualifications might have been doctored.

Meanwhile, Cabinet ministers are said to be split on what to do with the ailing parastatal.

Sources close to Cabinet claimed that Public Enterprise Minister Leon Jooste and Minister of Finance Calle Schlettwein wanted RCC liquidated, but Cabinet decided to salvage RCC.

“Both options were presented to the Cabinet committees on treasury, trade and economic development and we resolved not to liquidate,” a source said

However, Jooste explained that Government would not implement another turnaround strategy but a temporary rescue plan to buy them some time.

“At this point in time we are in the process of appointing an independent consultant, who can evaluate the entire situation at RCC, and recommend the best way forward to Government.

“It will be a short-term consultancy and should not cost too much, but Government will have to foot the bill.

“Either way it will be money well spent, because the documents presented to us thus far were not up to standard,” Jooste said.

The minister emphasised that neither the Ministry of Works and Transport nor the RCC have the knowledge or expertise to advise Government on a plan to rescue RCC, and therefore they had no other option but to outsource. Jooste also confirmed that Government would continue to pay RCC salaries and wages and assist the parastatal to pay its operational bills until they devise a plan.

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