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The Roads Authorty Annual Report

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The Roads Authorty Annual Report THE ROADS AUTHORTY ANNUAL REPORT CONTACT US WEB PHYSICAL ADDRESS Telephone: +264 61 284 7000 www.ra.org.na Corner of Mandume Ndemufayo Email: [email protected] and David Meroro Street, Southern Industrial Area THE ROADS AUTHORITY (RA) ANNUAL REPORT The Roads Authority, whose core business is to plan, design, construct and maintain Namibia's road sector and the operation of vehicles on national roads, plays a pivotal role in road safety in Namibia. Namibia's road network has been ranked among the safest, most efficient and sustainable, in Africa and is the envy of many countries. The growth of the road infrastructure and the expansion of the road network have contributed immensely to the economic development of Namibia and the SADC sub- region as a whole. TABLE OF CONTENTS VISION, MISSION AND VALUES 4 BOARD OF DIRECTORS 6 CHAIRPERSON'S STATEMENT 8 CORPORATE GOVERNANCE 10 EXECUTIVE COMMITTEE 12 CEO'S STATEMENT 14 SUMMARY: RA PERFORMANCE 16 ENGINEERING SERVICES 18 TRANSPORT REGULATORY AND INSPECTORATE 32 CORPORATE SERVICES 52 FINANCIAL STATEMENTS 56 VISION MISSION VALUES BRAND PROMISE OUR CORE VALUES R O RESPECT OPEN COMMUNICATION We believe that there is We believe that people who strength in diverse teams. connect and share information Therefore, we respect people freely are enabled to align THE ROADS AUTHORITY from all walks of life. towards achieving shared goals. Therefore, we commit DEFINED FIVE (5) CORE to share relevant information VALUES, ILLUSTRATED BY in an open and transparent manner. THE ACRONYM ROADS: 04 THE ROADS AUTHORITY ANNUAL REPORT 2018/19 OUR VISION A sustainable road sector which is ahead of national and regional socio-economic needs in pursuit of Namibia’s Vision 2030. OUR MISSION To manage the national road network to achieve a safe and efficient road sector in support of socio-economic growth. SAFE ROADS TO PROSPERITY A D S ACCOUNTABILITY DEDICATION SERVICE EXCELLENCE We are uncompromisingly We are committed to work We are in pursuit of excellence committed to good gover- together as a team in our in everything we do. There- nance and therefore shall quest to deliver on our fore, we are always seeking expect employees, at all levels mandate, irrespective of the new innovative solutions in of the organisation, to uphold many obstacles we might providing quality service to our ethical principles and shall face. We will always support stakeholders. hold them accountable for one another and never give their decisions and actions. up. THE ROADS AUTHORITY ANNUAL REPORT 2018/19 05 THE BOARD OF DIRECTORS A Board of Directors is a group of individuals elected to represent shareholders. A Board’s mandate is to establish policies for corporate management and oversight, making decisions on major company issues. 06 THE ROADS AUTHORITY ANNUAL REPORT 2018/19 MR. BRIAN KATJAERUA MS. ERNA MOTINGA Chairperson Deputy Chairperson MS. LILY BRANDT MR. TULI NASHIDENGO MR. CLIVE SMITH Board Member Board Member Board Member THE ROADS AUTHORITY ANNUAL REPORT 2018/19 07 THE CHAIRPERSON'S STATEMENT The Roads Authority (RA) plays a fundamental role in the socio-eco- nomic growth of Namibia and the SADC sub-region by providing a safe and sustainable road network. The RA Board has the role and responsibility to provide leadership and ensure that the RA remains stable. Thus, I am pleased to announce that the Chief Executive Officer’s (CEO) contract of employment was renewed for 5 years during the period under review. We wish him all the best as he continues to steer the organisation towards realising our vision of having a sustainable road sector, which is ahead of national and regional socio-economic needs in pursuit of Namibia Vision 2030. During the reporting period, the RA received its budget proportion of N$3,337,369,000. The amount consisted of the N$1,348,625,000 budget allocation he RA Board has taken a proactive stance with its oversight from Government (GRN), representing 40%, role and has had a productive and engaging year to ensure supplemented by N$1,988,744,000 funding from that the RA carries out its mandate to the optimum, using the Road Fund Administration (RFA), representing the available resources to ensure delivery to the people of 60%. The administration budget amounted to Namibia. It is our responsibility, one that is taken seriously N$528,151,395, which was 15.8% of the total RA byT every Board member, to ensure that we run our business within the budget. The personnel and other operational portion principles of good governance, ethical conduct and accountability, risk of the RA’s administrative expenditure took up 83%, management and compliance, both within the RA and in our interaction which totalled N$439,667,195, while Administrative with service providers. projects took up the balance of 17% of the overall RA budget spend on administrative costs. 08 THE ROADS AUTHORITY ANNUAL REPORT 2018/19 The Auditor General has completed the annual audit for resources in the delivery of our core functions, which the period under review and I am very pleased to report will bring effectiveness, enabling us to do more with the that the RA has achieved an unqualified audit report. few resources at our disposal. The performance and governance agreements for all APPRECIATION Board members, as well as the performance agreements for the Chief Executive Officer and Senior Management As the Chairperson of the Board, the past 2 years have of the RA have been signed and are in place. In addition, been inspirational, as I have seen the organisation grow, the RA has emphasised the importance of good not only in terms of the network, but also in its leadership corporate governance by strengthening the functions and commitment to provide a safe and efficient road of its Board Committees, namely the Audit, Risk and network to the Namibian people. Compliance Committee and the Human Resources Firstly, I would like to express my gratitude to Honourable Committee. John Mutorwa, Minister of Works and Transport, for his Enterprise-wide risk management is an integral part of guidance and leadership. I would also like to thank my the RA’s terms of fulfilling its mandate and the Board fellow Board members, the CEO, Senior Management has overall responsibility for risk management within the and staff for their dedication and commitment to the organisation. During the period under review, the Board goals we set during the past financial year. The team approved the Business Continuity Management Policy. efforts demonstrated by the entire RA staff is indeed commendable. The RA, with the guidance of the Board, set ambitious targets in fulfillment of its core business objectives, The RA Board looks forward to the new financial year and during the 2018/19 financial year, the entity with greater expectations and higher goals. With the endeavoured to meet expectations in some of its key dynamic RA team of management and staff, we remain responsibilities. Thus, I am pleased to state that the committed to working hard to achieve our set targets. implementation of the Harambee Prosperity Plan and National Development Plan 5 became a top priority. The Harambee Prosperity Plan requires the RA to construct MR. BRIAN KATJAERUA a total of 526 kilometres of bitumen standard roads by the year 2021. Thus far, we have constructed 445 kilometres. The construction of the Harambee projects, namely Section 4a of the Windhoek-Okahandja road upgrade to dual carriageway, the Swakopmund-Walvis Bay road upgrade to dual carriageway, Section 2a of the Windhoek-Hosea Kutako Airport road to a dual carriageway and the Swakopmund-Henties Bay road upgrade to bitumen standard, is also progressing well. Over the past year, the RA reviewed its Strategic Plan as well as its values, aligning these with the objectives of the Authority. The revised strategy sets out the strategic objectives of the RA for the next 5 years and forms the basis of the Authority’s annual planning. To achieve the objectives set out in the strategic plan, appropriate strategies, action plans, time frames and expected outcomes were determined and outlined in the strategic plan. As we reflect on these achievements, it is also imperative to be mindful of the challenges we faced during the period under review. The RA was not spared the economic pinch felt across all sectors due to the current economic climate in Namibia. Consequently, the RA experienced major financial challenges, resulting in inadequate funding and delayed payments. As a result, there is a backlog on the funding of rehabilitation of bitumen roads and regravelling of gravel roads. Hence, going forward, the RA will have to focus on optimal funding for rehabilitation and will develop a strategy that will ensure efficient and sustainable utilisation of THE ROADS AUTHORITY ANNUAL REPORT 2018/19 09 CORPORATE GOVERNANCE Corporate governance is the system of rules, practices, and processes by which an organisation is directed and controlled. Corporate governance essentially involves balancing the interests of an organisation’s stakeholders and provides the framework for attaining an organisation’s objectives. It encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. Good corporate governance is important in enabling the Board to fulfill the organisation’s mandate, to tackle challenges and to seize opportunities, in an environment of continual change, both internal and external to the Roads Authority. Therefore, the Board keeps the governance structures and arrangements under review on an on-going basis in order to ensure that the organisation’s processes remain at the forefront of best practice and are aligned to the needs of the organisation. The Board manages risks and provide assurance and accountability in a transparent way for the benefit of the organisation’s shareholders and all stakeholders.
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