WINDHOEK – The Roads Contractor Company (RCC) has denied everreceiving N$100 million to bail out its subsidiary Bricks and Concrete Industries (BCI). The company’ spokesperson Eric Libongani says what actually happened is that BCI stopped operations in March 2013 and as such the employee’s third party contributions were not paid over to the pension fund.
Libongani was adamant that such an oversight was not rooted in any practice of fraud or corruption at the company, as the public is alleging. It is alleged that BCI is facing a high-level investigation into fraud and corruption after significant amounts of pension money of employees allegedly disappeared.
The Anti-Corruption Commission (ACC) is said to have launched an investigation after the revelations that BCI failed to make monthly pension deductions payments on behalf of its staff. Reports further alleged that the Namibia Financial Institutions Supervisory Authority, NAMFISA, was informed of the disappearance of trust funds and an investigation was launched.
Libongani declined to comment in detail saying the situation is currently receiving the required attention at the highest level. When pressed further, Libongani said the issue is an internal administration matter and he did not want to disclose further details to the media before finding an amicable solution to the “very sensitive” matter. “We cannot shed light on why the contributions were not paid,” he said, explaining that they are dealing with employees’ pensions.
BCI closed its doors in March amid fears that the company is in a financial mess and could no longer honour its financial obligations, according to media reports.
The subsidiary was bought by the RCC in September 2005 to complement the RCC’s services on commercial and business principles. BCI supplies ready-mixed concrete, concrete stones, building sand, domestic and industrial paving, standard and super bricks and road and garden curbstones.
By Staff Reporter