RFA director raps ‘consultancy’ fees paid for foreign trip

A ROAD Fund Administration (RFA) director this week criticised a decision by the company to pay his colleague a fee of N$300 an hour over 21 days for attending a conference on behalf of the parastatal.

Vicky Richter, who was a member of the RFA board until last year, was paid N$51 000 for the conference in Australia and a trip to New Zealand where she went to observe a new road-user fee system. Harald Schmidt, speaking at the public hearings into alleged malpractices at the RFA and the Roads Authority, said he objected to the hourly rate Richter was to be paid.The decision went through after Richter and the only other director, Gerson Katjimune, overruled him.The N$51 000 constituted an eight-hour work day.The RFA had fully paid Richter’s travel and accommodation expenses, the commission of inquiry into malpractices heard from several witnesses.”In my practice, I would not have quoted a full consultancy fee while I travel,” said Schmidt.He said he believed Richter should not have charged the RFA at all when she accompanied some managers on the trip.”This is quite a substantial amount.Then you must ask yourself [about] the value you would get there”.The RFA directors had already been criticised for charging the parastatal an hourly rate of between N$300 and N$350 for doing administrative work.Schmidt defended some of the claims, saying that in December 2000 and January 2001 the directors needed to step in after two of the top managers were fired, leaving a gap in the administration.During that time Richter spent a lot of time at the offices and charged the RFA for “services” that included introducing a new chief executive officer and the time she would have waited to meet people for appointments.Harald Schmidt, speaking at the public hearings into alleged malpractices at the RFA and the Roads Authority, said he objected to the hourly rate Richter was to be paid. The decision went through after Richter and the only other director, Gerson Katjimune, overruled him. The N$51 000 constituted an eight-hour work day. The RFA had fully paid Richter’s travel and accommodation expenses, the commission of inquiry into malpractices heard from several witnesses. “In my practice, I would not have quoted a full consultancy fee while I travel,” said Schmidt. He said he believed Richter should not have charged the RFA at all when she accompanied some managers on the trip. “This is quite a substantial amount. Then you must ask yourself [about] the value you would get there”. The RFA directors had already been criticised for charging the parastatal an hourly rate of between N$300 and N$350 for doing administrative work. Schmidt defended some of the claims, saying that in December 2000 and January 2001 the directors needed to step in after two of the top managers were fired, leaving a gap in the administration. During that time Richter spent a lot of time at the offices and charged the RFA for “services” that included introducing a new chief executive officer and the time she would have waited to meet people for appointments.