Windhoek: Works and Transport Minister, Veikko Nekundi, has defended the Roads Contractor Company (RCC) against allegations that it is failing to empower Namibians, stating that the government remains committed to strengthening local participation in the construction sector.

According to Namibia Press Agency, Nekundi was responding to questions from Namibia Economic Freedom Fighters (NEFF) lawmaker Kalimbo Iipumbu regarding RCC's partnerships with foreign companies and the extent of local economic empowerment in road construction projects in the National Assembly on Thursday.

The minister said RCC, the Roads Authority (RA), and the Ministry of Works are finalising a five-year agreement to improve the State-owned company's operational capacity and reduce its dependence on subcontracting. "This agreement aims to strengthen RCC's capacity to operate sustainably and reduce the company's dependence on subcontracting the majority of the works to local or foreign companies for the execution of road projects," Nekundi said.

He added that RCC has been directed to seek strategic partnerships for capital projects while prioritising capacity building, skills transfer, and promoting local participation. The minister further noted that the government supports local participation in public construction projects. "The entire government system acknowledges the importance of promoting local participation in public construction projects," he said. He however added that his ministry is not the custodian of the Public Procurement Act and therefore could not commit to tabling legislative amendments.

Nekundi revealed that all 31 RCC grading unit projects are subcontracted to locally owned enterprises, while all five bitumen maintenance unit projects are undertaken entirely by RCC. He added that although five capital road projects involve foreign-owned companies registered in Namibia, more than 90 small and medium-sized enterprises participating as subcontractors on those projects are locally owned.

As a result, Nekundi rejected calls by the opposition lawmaker for the dissolution of the RCC board and management, saying that the facts do not support claims that the state-owned company has failed to empower Namibians.