What you need to Know:
- The ACC is investigating RCC CEO Dasius Nelumbu for awarding a N$1.5-million fuel tender to Eco Fuel Investment CC, linked to businessman Victor Malima.
- The ACC alleges RCC overpaid subcontractors through undocumented phone negotiations, indicating systemic financial mismanagement.
- Nelumbu denies wrongdoing, attributing the allegations to “disgruntled employees.”
- Former RCC CEO Kelly Nghixulifwa was convicted of fraud in 2023.
- Despite RCC’s financial collapse and corruption history, the government continues to back struggling parastata
By Tracy Tafirenyika | 24 February 2024
The Anti-Corruption Commission (ACC) is investigating Roads Contractor Company (RCC) acting chief executive Dasius Nelumbu over corruption allegations involving three tenders.
Documents seen by The Namibian show that one of the contracts under scrutiny is a N$1.5-million fuel supply tender awarded to Eco Fuel Investment CC, a fuel contractor company allegedly linked to Victor Malima – a businessman implicated in controversial deals at the National Petroleum Corporation of Namibia.
Another RCC case involves allegations of overpaying subcontractors.
Nelumbu has denied any wrongdoing, saying there are distractors who are spreading misleading information.
ACC spokesperson Josefina Nghituwamata, says investigations for two of the cases are at an advanced stage.
“The ACC has close to three cases registered with allegations of corruption against the RCC,” she says.
Nghituwamata adds that the third case was recently reported to the commission and is currently being investigated.
“Unfortunately, we are unable to discuss the specifics of the allegations in this instance or provide the names of anyone under investigation at this time,” she says.
According to her, “once the investigation is finished, we will be able to provide more information”.
Sources have told The Namibian that the ACC visited the RCC in November last year. RCC, a state-owned civil engineering outfit, has been in the red for the past few years and has relied heavily on government bailouts to stay afloat, including paying salaries.
Last year the Roads Authority – another state-owned company – expressed frustration, saying the RCC delayed the N$43 million Engoyi-Omuntele road project in the Oshikoto region.
THE TENDER
Documents seen by The Namibian dated 11 November 2024 reveal how RCC chief executive Nelumbu requested an urgent fuel purchase, with the request only bearing his signature.
The fuel was purchased from Eco Fuel Investment CC and the transaction was made on the same day Nelumbu requested for the fuel.
The documents, which name Eco Fuel Investment CC the beneficiary of the payment, show that the transaction was successfully processed. Efforts to get comment from businessman Victor Malima on Eco Fuel were not successful.
Speaking to The Namibian last week, Eco Fuel spokesperson Hamberera Andreas said their company operates as a contractor for RCC but denied wrongdoing.
“Our focus is on delivering services as requested by our clients. We are not involved in the procurement processes of our clients and recommend reaching out to the RCC directly for further details regarding those matters,” she said.
‘CHAOTIC’
Nelumbu has also denied wrongdoing, suggesting that some employees have spread misleading information.
“We have some employees who like chaos and some who were dismissed. My hope is that you are not being fed information which is personal attacks.”
He explained that the company is committed to its projects.
A source who prefers to remain anonymous alleged that contract negotiations are being conducted over the phone, with some subcontractors overpaid.
TAINTED COMPANY
The RCC has been marred by alleged corruption and mismanagement over the past decades, with its executives repeatedly implicated in scandals.
In 2005, payments of nearly N$4.9 million for land linked to the B1 City property development in Windhoek led to fraud and Anti-Corruption Act charges against former chief executive Kelly Nghixulifwa.
Last year, he was convicted on one charge of fraud and three charges of corruptly using his position as chief executive.
In 2013, The Namibian reported that the RCC purchased a N$3.4-million luxury house for an executive. That same year, its subsidiary, Bricks and Concrete Industries, owed Ohorongo Cement N$15 million due to mismanagement.
In 2017, over 300 employees went unpaid, prompting a government bailout to cover salaries.
Despite evidence of chronic mismanagement, then-works minister Alpheus !Naruseb sided with officials opposing the RCC’s closure. !Naruseb was later demoted by former president Hage Geingob.
In 2017, the RCC approved the N$800-million Windhoek Plaza project, with allegations that N$20 million was earmarked as kickbacks for politically connected figures.
Former public enterprises minister Leon Jooste has in the past argued against bailing out the RCC. In 2021, he said that RCC’s debt exceeded N$600 million.
The decision to shutdown RCC was never implemented.
In 2021, Jooste said the government had abandoned plans for RCC’s liquidation.
“The Ministry of Public Enterprises is not pursuing liquidation or judicial management but rather seeking an appropriate way to rescue the company,” he said.
This story was produced by The Namibian’s Investigative Unit. Send us story tips via your secure email to: investigations@namibian.com.na
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Investigation Unit [[{“value”:”What you need to Know: By Tracy Tafirenyika | 24 February 2024 The Anti-Corruption Commission (ACC) is investigating Roads Contractor Company (RCC) acting chief executive Dasius Nelumbu over corruption allegations involving three tenders. Documents seen by The Namibian show that one of the contracts under scrutiny is a N$1.5-million fuel supply tender awarded to Eco
The post ACC probes Roads Contractor Company boss over N$1.5m fuel tender appeared first on Investigation Unit.”}]]