RCC faces lawsuit in Zambia

THE Roads Contractor Company (RCC) could face legal action and a possible closure of its Zambian subsidiary if it fails to pay about N$10 million or more than eight billion Zambian Kwachas owed to Zambian creditors.

Its subsidiary, RCC Zambia, owes money to a group of 25 Zambian suppliers and service providers and about 300 employees. The suppliers and service providers say they are owed about N$8,5 million while the employees are owed about N$1,5 million.RCC Board Chairman Ludwig Narib yesterday told The Namibian that RCC Zambia ‘has financial constraints and it owes creditors some money, like any other company’. He added that the company ‘has some cash-flow situation we are trying to deal with’.The Namibian understands that some of the creditors are already taking the legal route in an attempt to recover their money. Others chose to seek a diplomatic solution by asking the Namibian High Commissioner to Zambia to intervene and facilitate the payment of the money owed. The same group also made contact with the RCC board urging the board to act on their concerns or they could force the company into administration.The Namibian has also seen a letter sent to the board by the creditors, accusing the current RCC Zambia CEO of being inaccessible, rude and generally impossible to work with.Some of the creditors fear that the company is winding up its operations in Zambia and about to leave that country without paying them. In the letter to the board of directors the creditors said one of the reasons for this fear is the fact that the RCC is not tendering for any new jobs in Zambia. tileni@namibian.com.na