Guest Contributor | Jul 3, 2019 | 0
Cabinet proposes Judicial Management of Roads Contractor Company
The Cabinet Committee on Overall Policy and Priorities (CCOPP) this week decided to seek placement of the parastal, Roads Contractor Company (RCC) under Judicial Management due to the company’s inability to make profit and always requiring bail outs.
If approved, the current board of the RCC will be disempowered, the Minister of Public Enterprises, Hon. Leon Jooste said at a press briefing.
As early as next week Tuesday, 12 September, the cabinet committee will approach Parliament for approval, in line with the RCC Act, thereafter an application will be made to the Master of the High Court to issue the Judicial Management order.
The duration of the period of Judicial Management, if approved, can not be preempted, the minister said.
Jooste explained that the current 393 employees at the RCC will not be affected if the company is placed under judicial management, because it only means that the move will try and prevent the company from closing down.
Meanwhile, he said that the salaries of the employees will be paid by State Treasury, however the employees will not be getting any bonuses during the period.
“The RCC has many creditors who will, while the company is under judicial management, have to wait to see their claims against the company settled. The Judicial Manager will proactively seek ways to restructure the debt of the company and respond to the financial demands of the company,” Jooste said.
Furthermore, Jooste said that the Judicial Manager, if appointed, will be empowered to make far-reaching decisions on the company’s business transactions, covering all aspects of operations, human resources and financial management.
The minister said that the decision to appoint a Judicial Manager is the “formal final decision from stakeholders” and if the current board wants to protest the move, then the board will be replaced.
The current financial position of RCC, who since its inception in 2000 has not been able to make a profit, will only be made public once the court order is made, Jooste added.