State-owned enterprise responsible for road and sport infrastructure projects, facing High Court winding-up threat over N$5 million debt and scrutiny over governance and foreign contractor involvement.
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June 2026
Windhoek Observer
Roads Contractor Company (RCC)is facingmounting financial and governance pressures
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“The Roads Contractor Company (RCC) is facing mounting financial and governance pressures, just days after a stormy meeting where minister of works and transport Veikko Nekundi reportedly described the company as "a mess" and demanded answers from its leadership over a disclaimer audit opinion and widespread payment failures.”
Roads Contractor Companyhad become a channel for foreign dominance, allegedly with N$2 billion out of N$4.1 billion in tenders going to foreign partnerchannel for foreign dominance in infrastructure delivery
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“He pointed to the 2018 RCC partnership with Chinese firm Nantong Sanjian, alleging that out of N$4.1 billion in tenders about N$2 billion went to the foreign partner, leaving locals in subcontracting roles.”
RCChas requestedan additional N$500 million loan from DBN to construct sport stadiums in 14 regions
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“The Roads Contractor Company (RCC) has requested an additional N$500 million loan from the Development Bank of Namibia (DBN) to construct sport stadiums in 14 regions.”
Roads Contractor Companyhas becomedominant player in public infrastructure delivery
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“At the centre of the controversy is the recent Expression of Interest (EOI) issued by the Roads Contractor Company (RCC), a State-owned entity that has become a dominant player in public infrastructure delivery.”
Roads Contractor Companyis not appointed by ministry torepresent government in sourcing DBN funding for sport infrastructure
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“The ministry wishes to state unequivocally that it has not appointed, mandated, or entered into any form of agreement with the RCC to represent the government in sourcing funding for the construction of sport infrastructure.”
Roads Contractor Companyis subject to discussion regardingprioritizing local companies in procurement
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“Minister of works and transport Veikko Nekundi said he cannot interfere with the procurement system, but promised to discuss the issue with the Roads Contractor Company (RCC) to ensure local companies are prioritised.”
MTC recorded profits of N$1.45 billion in the 2025 financial year, reinforcing its status as Namibia's most profitable public enterprise in the 2026 IJG Public Enterprise Governance Ranking. Other state-owned enterprises including NamPort, NamPower, and NamibRe showed mixed financial performance, with NamPort emerging as a strong turnaround performer with profits rising to N$864.5 million.
MTC recorded profits of N$1.45 billion in the 2025 financial year, reinforcing its status as Namibia's most profitable public enterprise in the 2026 IJG Public Enterprise Governance Ranking. Other state-owned enterprises including NamPort, NamPower, and NamibRe showed mixed financial performance, with NamPort emerging as a strong turnaround performer with profits rising to N$864.5 million.
Mobile Telecommunications Limited (MTC) scored 20 out of 20 in IJG Securities' 2026 Public Enterprise Governance Ranking, which assessed public enterprises over five years on annual report publication, profitability, fiscal transfer reliance, and CEO stability. NamPort, Agribank, and NamibRe placed second with 19 points each, while NamPower and NamWater tied for fifth with 18 points.
The Roads Contractor Company is facing legal action from Dust Construction and Civils over a rejected lease-to-own equipment agreement, with a law firm demanding N$4,969,345.23 within 48 hours and threatening to apply for the company's provisional winding-up in the High Court. The action comes after Transport Minister Veikko Nekundi described RCC as "a mess" over its disclaimer audit opinion and payment failures.
The Namibian Economic Freedom Fighters deputy president accused state-owned Roads Contractor Company of prioritizing foreign partners over local participation, citing a 2018 partnership with Chinese firm Nantong Sanjian in which approximately N$2 billion of N$4.1 billion in tenders went to the foreign partner. Minister of Works and Transport Veikko Nekundi rejected calls for a six-month forensic audit and disputed claims about local participation, saying the RCC's operations reflect local involvement.
Works and Transport Minister Veikko Nekundi rejected calls for a forensic audit into tender awards to foreign nationals, saying a 10-year audit cannot be completed in 6 months and that audits are expensive. NEFF MP Kalimbo Iipumbu had argued that Namibian businesses are excluded from capital projects and cited the Roads Contractor Company's 2018 partnership with a Chinese firm, which received N$2 billion of N$4.1 billion in tenders.
TransNamib's northern railway line, which runs from Tsumeb through Ondangwa to Oshikango and received N$1.17 billion in investment, faces severe infrastructure and capacity challenges including the need for rail upgrades, limited rolling stock capacity, and regulatory gaps. The government is demanding board accountability over frequent derailments on the line.
Works and transport minister Veikko Nekundi has instructed newly appointed boards of the Roads Contractor Company, Namibia Civil Aviation Authority and TransNamib Holdings Limited to urgently improve performance, accountability and service delivery. Nekundi ordered the RCC to submit outstanding annual reports and complete projects on time and within budget, directed the aviation authority to strengthen surveillance systems and address concerns raised by recent plane crashes, and demanded an end to delays in TransNamib's locomotive remanufacturing and frequent derailments.
Agriculture minister Inge Zaamwani has questioned a N$179 million quotation from August 26 Construction for a 400-kilometre border fence project along the Namibia-South Africa border aimed at containing foot-and-mouth disease, citing cost concerns and procurement issues.
Government will build a N$5 million sports facility in Rehoboth with a gravel athletics track, ablution facilities, and a pavilion seating approximately 350 spectators as part of the Basic Constituency Sport Infrastructure Facilities programme allocating N$10 million per region for 28 facilities nationwide. Residents have raised concerns about the location near an oxidation pond and cemetery, and questioned why a new facility is being pursued while an older stadium remains incomplete.
The Institute for Public Policy Research has criticized the government's decision to bypass the Central Procurement Board on N$350 million in projects, arguing it creates risks of corruption and waste. The government has directly awarded contracts including a N$140-million sports stadium project to the Roads Contractor Company and other projects to August 26 without public tendering, a practice that lacks transparency and limits competition for local businesses.
The Construction Industries Federation of Namibia (CIF) warns that the Roads Contractor Company's infrastructure procurement model risks sidelining domestic contractors through stringent financial thresholds that favour firms with stronger balance sheets and external funding access, effectively excluding technically capable Namibian firms from competing on equal terms.
The state-owned Roads Contractor Company has requested a N$500 million loan from the Development Bank of Namibia to build sport stadiums across 14 regions without a public tender process. The project, part of the president's infrastructure pledge to all 121 constituencies, has raised concerns about unclear costs, lack of transparency, and potential involvement of foreign contractors despite a directive limiting subcontracting to local small and medium enterprises.
The Construction Industries Federation of Namibia warns that the Roads Contractor Company's procurement model, with stringent financial thresholds and centralized project allocation, risks sidelining technically capable domestic contractors in favour of foreign-linked firms with stronger balance sheets. CIF chief executive Bärbel Kirchner argues the structure contradicts government commitments to boost Namibian participation and risks weakening local capacity and the construction sector's contribution to GDP.
The Ministry of Education, Innovation, Youth, Sport, Arts and Culture said it had not appointed the Roads Contractor Company to source funding from the Development Bank of Namibia for sport stadiums, nor was it aware of or party to any loan application by the RCC. The ministry said it remains the custodian of sport infrastructure development and is implementing its national programme with N$5 million per facility as part of phase 1 of a long-term, phased approach.
The Construction Industries Federation of Namibia has warned that the Roads Contractor Company's tender requirements, particularly strict financial criteria, prevent qualified Namibian contractors from competing and may advantage foreign-linked companies with better access to financing.
The Construction Industries Federation of Namibia has warned that the Roads Contractor Company's expression of interest rules exclude qualified Namibian contractors through strict financial requirements that favour foreign-linked companies with access to cheaper financing. The federation says this contradicts government's stated support for Namibian contractors and has requested a review of the contracting approach.
The Landless People's Movement has raised concerns in Parliament about government procurement practices that allegedly favour well-funded foreign firms over local contractors, citing high start-up capital requirements of N$20 million to N$70 million that local companies struggle to meet. The Works and Transport Minister acknowledged the issue and promised to discuss prioritising local companies with the Roads Contractor Company, though he noted current law prevents him from directly intervening in the procurement system.
The Ondangwa Town Council raised N$885,070 in cash and pledges at a gala dinner to fund the 13th edition of the Ondangwa Trade and Industrial Exhibition, scheduled for April–May 2026. Vice President Lucia Witbooi officiated the event, highlighting the exhibition's role in promoting entrepreneurship and economic development, while business leaders called for greater priority to be given to local contractors over foreign firms in government tender awards.
President Netumbo Nandi-Ndaitwah has pledged N$10,000 towards the upcoming Ondangwa Trade and Industrial Exhibition scheduled for 24 April to 2 May, with Vice President Lucia Witbooi describing it as an investment in the country's economic future. Local businesses and individuals have pledged about N$885,000 in total support for the event, themed "Connecting Local Trade to the World," which aims to empower local enterprises and develop Ondangwa into a world-class convention and events destination.
Construction of a multi-purpose sport facility in Usakos has begun as part of the government's N$140-million national sport infrastructure programme directed by the president to develop facilities across all 14 regions. The project will include a football pitch, athletics track, spectator seating and changing rooms, with completion expected to enable the town to host regional sporting tournaments and support youth development.
Rehoboth Town Council marked the groundbreaking of a new N$5 million sports facility on a 10-hectare site in Block H, which will accommodate six sports codes and create approximately 45 local jobs. The project has been welcomed as long-awaited community development, though some residents raised concerns about the location near a cemetery and questioned why it is being built while an older partially constructed stadium remains unused.
The government has awarded Roads Contractor Company (RCC) a N$140-million project to build sport facilities across Namibia's 14 regions, bypassing standard public procurement rules under a presidential fast-track exemption. The decision has drawn criticism from industry groups and opposition politicians over transparency and accountability, though officials argue the project follows existing legal frameworks and incorporates oversight mechanisms.
The finance ministry plans to reduce subsidies and capital transfers to state-owned enterprises from N$1.3 billion in 2025/26 to N$615.7 million in 2026/27, citing fiscal consolidation and high public debt. Several SOEs including TransNamib and the Agricultural Bank of Namibia will receive no government transfers, while priority support goes to the National Housing Enterprise and Road Fund Administration.
Transport minister Veikko Nekundi reportedly warned Namport bosses at a January meeting not to take business from Tradeport Namibia, co-owned by President Nandi-Ndaitwah's son Nande Ndaitwah, which Namport said stood to lose about N$20 million in annual income if it brought in a competing South African operator. Nekundi denies favouring the president's son, saying his duty is to protect local companies over foreign ones.
The government aims to financially revive the struggling Roads Contractor Company through a recapitalisation strategy involving equipment procurement and project allocations. Minister of Works and Transport Veikko Nekundi said the company, which lost capital assets through auctions between 2016 and 2024, will be supported via a lease-to-own equipment plan that has already delivered multiple vehicles and machinery.
Namibia's cabinet approved the Angola-Namibia Interconnector project to support energy security and industrial development, and endorsed stakeholder recommendations from the festive season road safety campaign including increased traffic enforcement, driver education, and use of body-worn cameras by traffic officials. The cabinet also approved extension of a repatriation programme for persons of Namibian descent from Botswana and accepted Namibia's bid to host the Global Water Partnership Organisation Secretariat in Windhoek.
Urban and Rural Development Minister James Sankwasa conducted an inspection in Rundu and declared severe soil erosion in Tutungeni and surrounding areas an emergency, ordering the town council to seek three quotations from specialized companies for stormwater drainage and erosion control through expedited government procurement. The minister emphasized the need for collaboration between his ministry and the Ministry of Finance, and criticized poor drainage maintenance and lack of planning while urging stronger revenue collection from government entities to fund repairs.
Transport Minister Veikko Nekundi has told the Roads Contractor Company (RCC) it must become self-sustaining and can no longer rely on government financial support, despite holding more tenders than any private company in the country. RCC's CEO responded that the company has implemented a sustainability strategy and addressed capacity and system challenges.