Government is going to wind up the operations of a state owned road construction firm in a bid to encourage private sector competition.
Road Construction and Development Company (RCDC) is planning to offer a voluntary retirement deal to its 2000 employees before its operations are wound up.
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rnThe Treasury has agreed to fund the VRS and the proposal has already gone for Cabinet approval.rn
rnHighways Ministry officials say that the RCDCs loose procedure and uncompetitive rates has forced the government to reconsider its continuation.rn
rnThey say that the RCDC was misused by politicians to carry out projects that havent been budgeted in their electorates eating up the funds allocated for other projects.rn
rnThese actions resulted in the company losing face with the countrys donors who excluded the organization from bidding for aid funded construction projects.rn
rnThe RCDC, which is a fully own subsidiary of the Road Development Authority, has more than 2000 employees in the grades of driver