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Thursday, August 24, 2006 - Web posted at 7:41:14 GMT

RCC suspends its CEO

JOHN GROBLER

THE Chief Executive Officer of the Road Contractors Company (RCC), Kelly Nghixulifwa, has been suspended with immediate effect.

Nghixulifwaa confirmed to The Namibian yesterday that the RCC Board of Directors had informed him of the move, but insisted that he was in the dark about the reasons.

However, he acknowledged that accusations had been levelled earlier about alleged improper behaviour linked to his purchase of a luxury car for his wife, and the alleged use of RCC money to settle overdue bond payments for another senior manager at the RCC.

Nghixulifwa said the Board had not informed him of the reasons for his suspension, or the nature of the charges being investigated against him.

EARLIER ALLEGATIONS The news of his suspension appeared to be widely known inside the company by late yesterday.

"Yes, I was called in by the Board and told that I was suspended," Nghixulifwa said.

In spite of Labour Act (Act 9 of 1992) provisions in this respect, he said he had not been given reasons for his suspension.

Nghixulifwa confirmed details of an earlier, internal investigation in which e-mails were circulated that suggested improper behaviour with regard to a luxury car he bought for his wife, or the alleged use of RCC money to settle overdue bond payments for a senior manager at the RCC.

"I was asked by the board to explain those things two months ago," Nghixulifwa said in a brief telephonic interview.

"I wrote my report and submitted it to them … I have not heard anything since."

The General Manager for Human Resources at RCC, Brian Nalissa, also refused to comment on the investigation, or whether he had ever been in default on his housing loan.

He referred all questions to the Chairman of the Board, Otto Shikongo.

Nghixulifwa said yesterday he had not decided on what, if any, action to take.

"I must wait and see - what else can I do?" he commented.

Board Chairman Shikongo was locked in meetings all afternoon, and had not returned any calls at the time of going to press.

The RCC is no stranger to controversy: Nghixulifwa's predecessor, Farhad Nadimi, was fired in 2002.

In July the following year, two other senior managers - Finance and Administration Manager John Manaviri and Chris Mvungi from the same department - were also suspended.

Nhixulifwa, who took over after Nadimi at RCC, which by then had wallowed in red ink since its creation from the former Department of Roads, had pledged to break even by 2005.

Some of this effort was by means of reducing staff by 500, after the RCC had absorbed all former Development Brigade personnel.

Subsequently, the RCC has expanded into other investment fields like developing residential properties (it bought large tracts of erven in the Windhoek suburb Kleine Kuppe at a recent City auction) and is constructing a new "super truck stop" B1-City at the intersection of the B1 road and Independence Avenue on the outskirts of Windhoek.

* John Grobler is a freelance journalist; 081 240 1587

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