RCC Acting Boss On Gravy Train – Rakes in N$130 000 Tax-Free a Month

BROKE Road Contractor Company has been splashing money on expatriates on the pretext of attracting skills, while ignoring its own policies.

Sources have cited the example of the current acting chief executive officer Pieter Oosthuizen, who has been with the company since November 2012.

Oosthuizen, whose responsibility is to work on revenue generating projects, is said to earn N$100 000 a month inclusive of housing and car allowances but he has been staying in a company house for free and driving a company car.

He also gets extras which push his monthly total income to over N$138 000 tax free.

The Namibian also understands that it is likely Oosthuizen also earns an additional allowance for acting as chief executive officer of the company.

Sources said when the company deducted N$9 000 for the use of the vehicle from his salary,

Oosthuizen complained to the board of directors who instructed that he should be refunded and that the company should stop the deductions.

Oosthuizen uses a 4×4 Mitsubishi Pajero, and he allegedly receives free fuel worth N$4 500 every month. The Namibian reported last year that the RCC bought an upmarket house for Oosthuizen, who until today stays in the house without paying rent.

According to the sources, the market value for the house in terms of rentals is about N$25 000 per month. RCC sources also pointed out that Oosthuizen has a non-taxable employment contract, which means the company does not deduct pay as you earn tax from his salary.

Oosthuizen is then left to pay the Receiver of Revenue himself, which sources said is the same with all the three expatriates employed at the parastatal. Responding to The Namibian this week, Oosthuizen said the company complies with the income tax law requirements.

The company, through Oosthuizen, confirmed that the expatriates are employees of the RCC and not consultants.

Sources however pointed out that Oosthuizen only registered for tax in October this year, while he has been working for RCC since November 2012. This has raised questions as to why the expatriates are given special treatment.

Fingers are pointed at RCC board chairperson Sonia Bergh for negotiating the strange contracts which appear to favour Oosthuizen more than the company which is in desperate need of a lifeline. Questions have also been asked about what difference Oosthuizen has made in turning the company’s fortunes around.

The Namibian has also learned that RCC is not in good standing with the receiver of revenue. The company has allegedly not been paying over income tax it deducts from its employees over to the Receiver of Revenue as well as value added tax.

Questions sent to the RCC were answered by Oosthuizen who refused to provide information about his employment contract and those of other expatriates, saying it is private and confidential.

Oosthuizen, however, said the company decided to buy houses for use by expatriates to “attract talent while also easing the accommodation requirements of the expatriates who are only given limited term contracts”.

The Namibian has also learned that these expatriates have until recently not been contributing to social security as well.

Some of them, despite being employed by RCC, are not on the company’s payroll but on the list of service provider companies. This means they are not treated as employees.

Although Bergh referred questions to the company spokesperson Gerson Karaerua, Oosthuizen responded on behalf of the parastatal.

Source : The Namibian