Renthia Kaimbi
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.
In a letter dated 20 June 2026 addressed to RCC interim chief executive officer Dasius Nelumbu, Bruyns Legal Practitioners, acting on behalf of Dust Construction and Civils (Pty) Ltd, rejected the RCC’s purported rescission of a lease-to-own agreement for construction equipment as “factually incorrect, legally unsound” and “a desperate and mala fide stratagem to evade the RCC’s lawful and significant financial obligations.”
The law firm had given the RCC 48 hours from receipt of the letter to pay the full amount of N$4,969,345.23, warning that failure to do so would be taken as conclusive proof of commercial insolvency. The 48-hour deadline expired on Wednesday.
The firm said it holds instructions to “forthwith, and without any further notice, launch an application in the High Court of Namibia for the provisional winding-up of the Roads Contractor Company (RCC) Ltd.”
The dispute stems from a lease-to-own agreement that the RCC had previously touted as a cornerstone of its turnaround strategy.
In November 2025, Nelumbu had described the lease-to-own strategy as “the only gateway toward reviving RCC’s capacity,” explaining that the company did not have the financial means to purchase such large quantities of productive machinery and that the arrangement would enable the company to execute projects using its own equipment rather than expensive hired plant.
However, the legal demand letter reveals that the RCC has now sought to rescind the agreement, alleging material misrepresentation regarding ownership of the equipment.
The law firm representing Dust Construction states that the RCC entered into the agreement “with full knowledge that the equipment was subject to a financing arrangement” and that the company’s obligation is to transfer clear title only on the “Perfection Date” at the end of the 60-month lease term, subject to the RCC having fulfilled all its payment obligations.
The legal battle emerged following allegations of serious financial and operational strain at the RCC. Between 2016 and 2024, some of the company’s production assets were auctioned, leaving it without adequate equipment to continue with major road servicing and construction work.
The government has had to intervene, with Nekundi revealing in Parliament earlier this year that the state intends to revive the company within five years through a recapitalisation strategy focused on equipment procurement and dedicated project allocations.
The minister’s frustration with the RCC’s management was laid bare during a meeting last week with the company’s board, management, Roads Authority officials, and a group of other contractors who claim they have not been paid for work completed over the past three months.
According to sources, Nekundi openly and harshly confronted Nelumbu and the executive management team over the company’s financial, contractual, and administrative shortcomings.
Nekundi allegedly questioned how the company could end up receiving a disclaimer audit opinion while there are qualified professionals employed to manage the institution, and labelled the company as a “mess.”
He reportedly also questioned why the company secretary was sidelined from key legal and contractual matters despite being responsible for advising the company on compliance, legal processes, and corporate administration.
He also linked the company’s management failures to its disclaimer audit opinion, calling out Nelumbu for “leadership failure.”
The meeting also heard allegations that several contractors undertaking road maintenance, blading, and grading projects on behalf of RCC do not have substantive contracts in place, despite having completed work for the company.
Contractors informed the minister that outstanding invoices range from N$250 000.
Nekundi reportedly instructed RCC’s leadership to ensure that all legitimate outstanding invoices are paid within seven days, which expired on Wednesday.
He also warned that failure to honour contractors’ payments in future would attract serious consequences, and that he would “not allow taxpayers’ money to be used for court battles over technical issues that could have been avoided through consultation and good practices.”
The timing of the legal action is particularly sensitive for the RCC, which had positioned the lease-to-own arrangement as a key element of its turnaround.
The RCC had previously stated that the initiative was part of the company’s broader turnaround plan to restore its capability and competitiveness in the infrastructure sector, allowing the company to “execute projects directly using its own machinery, which significantly reduces external hiring costs and project delays.”
The RCC’s financial difficulties have been long-standing. In 2018, the company’s head office was attached by Bank Windhoek after it was used as collateral for a loan.
The legal demand letter, copied to the RCC board and the ministry of works and transport, makes clear that the dispute arises from what the law firm describes as the RCC’s “concomitant refusal to honour its payment obligations.”
The firm rejects the RCC’s purported rescission of the agreement as “invalid and without any legal foundation” and insists that the debt is a liquidated amount “arising from the Agreement.”
At the time of publication, Minister Nekundi and the RCC could not be reached for comment on the legal action.
On Thursday, lawyer Riaan Bruyns told the Windhoek Observer that the RCC had not made any payment to its client but requested their availability for further engagement.
“No payment has been made but we’ll indicate our availability to meet with them for further consultation,” said Bruyns.
However, the minister has previously made clear his position on delayed payments to contractors, describing it as unacceptable and a sign of a lack of commitment to national development.
He has also called for contractors to be paid on time and warned against the mistreatment of subcontractors, threatening to blacklist those who abuse their power.
