RCC prepares to bite the bullet

ROADS Construction Company’s Acting CEO Noks Katjiuongua has confirmed a company restructuring process, which, if approved by its Board and the State, could see a top-heavy management trimmed back to save millions on its wage bill.

Katjiuongua also signalled the company’s seriousness in addressing management problems by insisting that former General Manager: Human Resources Brian Nalisa return a company Mercedes Benz, or pay for it. Two other former managers, former CEO Kelly Nghixulifwa and GM: Finance & Administration Rudi Saunderson, also have to pay back another loan of N$198 000 they approved for Nalisa, Katjiuongua said upon enquiry.Nalisa kept the vehicle, a top-of-the-range E350 model that cost N$512 000, when he left the RCC at the end of last year after only 18 months into a five-year, N$700 000 a year contract.Nalisa tendered his resignation on October 18, two months after former CEO Kelly Nghixulifwa was suspended by the RCC Board on August 24.Saunderson also resigned during the same period.Nalisa and Nghixulifwa’s lawyer, Coline Bazuin of Koepplinger Legal Practitioners, denied that her two clients’ resignations were in any way connected.Saunderson similarly denied that he was forced to walk the plank after a forensic audit brought to light several financial irregularities at the RCC.Very serious questions were raised in respect of a financing deal on the B1 City development, as well as a host of other irregular deals that saw the RCC rack up massive financial losses.All of these have either been renegotiated or cancelled, the current RCC management made clear.Nghixulifwa, who was later charged with eight counts of gross dishonesty, recklessness and negligence, denied all charges but resigned early January before a disciplinary hearing scheduled for early February could take place.In electronic correspondence and copies of letters to the RCC, Bazuin insisted that the RCC Board had approved the N$512 000 loan to help Nalisa buy the car.He had paid all instalments and maintenance since July 2005, and therefore was entitled to keep the car, she said.Bazuin, who also represented Nghixulifwa during his preliminary disciplinary hearings, claimed the loan was offered to Nalisa by Saunderson and Nghixulifwa after Nalisa was refused car financing by two banks because of his credit record.The fact that the legality of the loan was disputed amounted to the RCC’s own problem, Bazuin wrote.She threatened to have Katjiuongua personally charged with incitement to theft, should the RCC try to repossess the vehicle.But RCC Chairman Otto Shikongo emphatically denied that there had ever been Board approval for the N$512 000 personal loan to pay for the Mercedes Benz E350 that Nalisa ordered from M&Z Motors shortly after his appointment on April 1 2005.”The Board had approved a vehicle allowance and a company car scheme … the matter [of the loan to Nalisa] was never brought before us,” Shikongo told The Namibian.”If there were arrangements outside the scope of this scheme, the former management must account for it.”Nalisa only qualified for a Mercedes Benz E240 (of about N$392 000) or equivalent in terms of his job grade, and effectively ended up receiving a more expensive company car than he was entitled to, as well as a car allowance.Nalisa had tried to sell the car via Auto Engling for N$442 000 in December, but withdrew it from their salesroom when the RCC objected, both parties have confirmed.The RCC now wants him to pay N$365 000 for the car, or face legal consequences.The Namibian is also in possession of an internal report that showed that Nghixulifwa, Saunderson and Nalisa had racked up thousands of dollars in personal expenses on their company credit cards.For example, in the period December 2004 to October 2005, Saunderson had charged N$43 928,48 to his company credit card, of which N$39 636,34 was for personal expenses.Nalisa, who only joined the RCC in April that year, had spent N$23 771,06 on his credit card, of which only N$3 451,22 was allegedly for legitimate company expenses.Nghixulifwa spent N$112 095,68 on his company credit card, of which N$24 420,80 was for personal expenses.As CEO, he earned more than N$1 million a year.RCC policy is that company credit cards are only to be used for official expenses when on company business outside Windhoek.Nghixulifwa, Nalisa and Saunderson all denied any wrongdoing or abuse of position, with the latter two insisting in the same report that they were unaware of company policy in this regard.While not the only offenders, they were responsible for applying company policy in this regard.Nalisa, who now runs his two nightclubs (Club Pamodzi and Club Kangoma) on a full-time basis, also denied using RCC time and facilities while in the RCC’s employ to manage his private interests.All of them have denied the accusations in the most strenuous terms, with Bazuin threatening legal action if allegedly slanderous reporting on her clients should continue.* John Grobler is a freelance journalist; 081 240 1587Two other former managers, former CEO Kelly Nghixulifwa and GM: Finance & Administration Rudi Saunderson, also have to pay back another loan of N$198 000 they approved for Nalisa, Katjiuongua said upon enquiry.Nalisa kept the vehicle, a top-of-the-range E350 model that cost N$512 000, when he left the RCC at the end of last year after only 18 months into a five-year, N$700 000 a year contract.Nalisa tendered his resignation on October 18, two months after former CEO Kelly Nghixulifwa was suspended by the RCC Board on August 24. Saunderson also resigned during the same period.Nalisa and Nghixulifwa’s lawyer, Coline Bazuin of Koepplinger Legal Practitioners, denied that her two clients’ resignations were in any way connected.Saunderson similarly denied that he was forced to walk the plank after a forensic audit brought to light several financial irregularities at the RCC.Very serious questions were raised in respect of a financing deal on the B1 City development, as well as a host of other irregular deals that saw the RCC rack up massive financial losses.All of these have either been renegotiated or cancelled, the current RCC management made clear.Nghixulifwa, who was later charged with eight counts of gross dishonesty, recklessness and negligence, denied all charges but resigned early January before a disciplinary hearing scheduled for early February could take place.In electronic correspondence and copies of letters to the RCC, Bazuin insisted that the RCC Board had approved the N$512 000 loan to help Nalisa buy the car.He had paid all instalments and maintenance since July 2005, and therefore was entitled to keep the car, she said.Bazuin, who also represented Nghixulifwa during his preliminary disciplinary hearings, claimed the loan was offered to Nalisa by Saunderson and Nghixulifwa after Nalisa was refused car financing by two banks because of his credit record.The fact that the legality of the loan was disputed amounted to the RCC’s own problem, Bazuin wrote.She threatened to have Katjiuongua personally charged with incitement to theft, should the RCC try to repossess the vehicle.But RCC Chairman Otto Shikongo emphatically denied that there had ever been Board approval for the N$512 000 personal loan to pay for the Mercedes Benz E350 that Nalisa ordered from M&Z Motors shortly after his appointment on April 1 2005.”The Board had approved a vehicle allowance and a company car scheme … the matter [of the loan to Nalisa] was never brought before us,” Shikongo told The Namibian.”If there were arrangements outside the scope of this scheme, the former management must account for it.”Nalisa only qualified for a Mercedes Benz E240 (of about N$392 000) or equivalent in terms of his job grade, and effectively ended up receiving a more expensive company car than he was entitled to, as well as a car allowance. Nalisa had tried to sell the car via Auto Engling for N$442 000 in December, but withdrew it from their salesroom when the RCC objected, both parties have confirmed.The RCC now wants him to pay N$365 000 for the car, or face legal consequences.The Namibian is also in possession of an internal report that showed that Nghixulifwa, Saunderson and Nalisa had racked up thousands of dollars in personal expenses on their company credit cards.For example, in the period December 2004 to October 2005, Saunderson had charged N$43 928,48 to his company credit card, of which N$39 636,34 was for personal expenses.Nalisa, who only joined the RCC in April that year, had spent N$23 771,06 on his credit card, of which only N$3 451,22 was allegedly for legitimate company expenses.Nghixulifwa spent N$112 095,68 on his company credit card, of which N$24 420,80 was for personal expenses.As CEO, he earned more than N$1 million a year.RCC policy is that company credit cards are only to be used for official expenses when on company business outside Windhoek.Nghixulifwa, Nalisa and Saunderson all denied any wrongdoing or abuse of position, with the latter two insisting in the same report that they were unaware of company policy in this regard.While not the only offenders, they were responsible for applying company policy in this regard.Nalisa, who now runs his two nightclubs (Club Pamodzi and Club Kangoma) on a full-time basis, also denied using RCC time and facilities while in the RCC’s employ to manage his private interests.All of them have denied the accusations in the most strenuous terms, with Bazuin threatening legal action if allegedly slanderous reporting on her clients should continue.* John Grobler is a freelance journalist; 081 240 1587