WINDHOEK: The leadership of the Roads Contractor Company Limited (RCC) said the business performance of the State-owned entity has improved thanks to the implementation of its turnaround plan during the 2007/2008 financial year.
It is reported that with the commencement of the implementation of the turnaround strategy during the latter part of the 2008, the RCC’s business performance has significantly improved from a loss position of N.dollars 65 million in the 2007/2008 financial year to a profit position of N.dollars 17.4 million in the 2010/2011 financial year.
The consolidated financial results which include the RCC’s subsidiaries and joint ventures show that the parastatal group has moved from a loss position of N.dollars 23.5 million in the 2007/2008 financial year to a profit position of N.dollars 28 million in the 2010/2011 financial.
The RCC’s improved business performance position was revealed and made public by Minister of Works and Transport Erkki Nghimtina in his speech at the official launch of the company’s business strategic plan and its audited financial statements for 2010/2011 at an occasion held at a local hotel here on Monday evening.
According to the Minister, although the RCC still faces some financial challenges, particularly on the settling of the historical backlog of its value-added tax (VAT) and pay-as-you-earn (PAYE), the company’s financial results bear testimony of the hard work and commitment put in by the board of directors, management and employees in ensuring a return to profitability and runing a viable and sustainable business operation.
With regards to company’s newly-launched business strategic plan, the Minister acknowledged that a business plan is a highly complex process and can become demanding with its implementation.
‘Undoubtedly, in coming up with the Business Strategic Plan, the RCC had to link it to a parallel business turnaround strategy that will see the RCC steering into a bright future, ‘ noted the Minister.
Nghimtina told people at the gathering that the launch of the RCC business strategic plan and the audited financial statements is clear demonstration from the company’s leadership of its resolute commitment to transparency and response to the government’s call for adherence to good corporate governance by the state-owned enterprises in Namibia.
‘It is a well-known fact that your business plan reveals your dreams, but the worst misery you can inflict on yourself is to fail to live up your dreams because doing so is as good as someone who did not have a dream at all. In order to realise one’s dream, one need to properly craft smart implementable strategies guided by commitment to achieve the set goals of the company, ‘ advised the Minister.
Nghimtina then encouraged the RCC leadership and management not to make their business strategic approach a decoration in their books but rather to commit to its implementation with all due diligence and respect.
Speaking at the same occasion, the RCC’s Chief Executive Officer Engelhard Haihambo said his company will continue to help all the communities in Namibia to a bright future through the improvement and rehabilitation of all roads network in all corner of the country.