Municipal debt: Keetmanshoop puts its foot down
• Over N$210m outstanding
The municipality has been "too lenient" and will now adopt an aggressive approach to collect over N$200 million owed to it.
The Keetmanshoop municipality says it will employ a more aggressive debt recovery strategy to recover millions owed to it by residents in municipal debts.
Official municipal statistics indicate that private businesses, government offices and other institutions currently owe the municipality N$85 million, while residents owe a staggering N$127 million.
In total, the municipality is owed N$212 million.
During a community meeting held at the Mukorob council chamber, municipal officials told residents: “We have been too lenient and will now be more aggressive in the collection of money owed for municipal services”.
"This strategic initiative will be divided into three phases and is designed to address a critical issue of unpaid municipal accounts. We understand the challenges that businesses face, but it is crucial for us to ensure that everyone gives their fair share for everyone to maintain the services we all depend on," Keetmanshoop mayor McDonald Hanse said.
He added that if accounts are not paid, water and electricity connections will be suspended.
Phases
The first phase of the initiative will commence on 6 November for businesses, government offices and other institutions like schools if their accounts are not paid by 3 November.
The second phase, starting on 4 December, will target municipality staff members and councillors, while the third phase will target residential debt.
Hanse revealed that the municipality has acquired 1 000 pre-paid water meters, of which 250 are ready to be installed.
Seven councillors will be the first to receive these pre-paid meters as a "gesture of goodwill", he said.
Residents will be able to load their current debt onto their prepaid meters, and during every purchase, a percentage of the overall debt will be deducted to lower it.
Each meter costs N$3 750, excluding VAT, the mayor said.
Electricity over salaries
Keetmanshoop acting CEO Lee Mwemba said the municipality does not owe NamPower, but its NamWater bill currently stands at just over N$32 million.
"We are the only municipality in the south that does not owe NamPower anything. We have a very dedicated team that would rather pay the electricity than pay salaries," he said.
"We have a total of 9 815 customers excluding electricity; however, only 2 257 (23%) of these customers are active payers,” he said.
He revealed that a massive 77% of customers don't make any payments at all.
“From the active payers, we make at least N$6 million in revenue monthly. This is not enough as we get a water bill of N$3.3 million, which we need to settle every month," he said.
Examinations
Community members raised concerns about schools' water being disconnected, especially with learners currently writing examinations.
To this, council chairperson Johannes Vries said the municipality has been “too forgiving" and thus needs to act now.
"We are also a part of these communities; we are parents with children who go to school. However, we have been too forgiving. The council will speak to the health and education ministries and find common ground," he told disgruntled community members.
Official municipal statistics indicate that private businesses, government offices and other institutions currently owe the municipality N$85 million, while residents owe a staggering N$127 million.
In total, the municipality is owed N$212 million.
During a community meeting held at the Mukorob council chamber, municipal officials told residents: “We have been too lenient and will now be more aggressive in the collection of money owed for municipal services”.
"This strategic initiative will be divided into three phases and is designed to address a critical issue of unpaid municipal accounts. We understand the challenges that businesses face, but it is crucial for us to ensure that everyone gives their fair share for everyone to maintain the services we all depend on," Keetmanshoop mayor McDonald Hanse said.
He added that if accounts are not paid, water and electricity connections will be suspended.
Phases
The first phase of the initiative will commence on 6 November for businesses, government offices and other institutions like schools if their accounts are not paid by 3 November.
The second phase, starting on 4 December, will target municipality staff members and councillors, while the third phase will target residential debt.
Hanse revealed that the municipality has acquired 1 000 pre-paid water meters, of which 250 are ready to be installed.
Seven councillors will be the first to receive these pre-paid meters as a "gesture of goodwill", he said.
Residents will be able to load their current debt onto their prepaid meters, and during every purchase, a percentage of the overall debt will be deducted to lower it.
Each meter costs N$3 750, excluding VAT, the mayor said.
Electricity over salaries
Keetmanshoop acting CEO Lee Mwemba said the municipality does not owe NamPower, but its NamWater bill currently stands at just over N$32 million.
"We are the only municipality in the south that does not owe NamPower anything. We have a very dedicated team that would rather pay the electricity than pay salaries," he said.
"We have a total of 9 815 customers excluding electricity; however, only 2 257 (23%) of these customers are active payers,” he said.
He revealed that a massive 77% of customers don't make any payments at all.
“From the active payers, we make at least N$6 million in revenue monthly. This is not enough as we get a water bill of N$3.3 million, which we need to settle every month," he said.
Examinations
Community members raised concerns about schools' water being disconnected, especially with learners currently writing examinations.
To this, council chairperson Johannes Vries said the municipality has been “too forgiving" and thus needs to act now.
"We are also a part of these communities; we are parents with children who go to school. However, we have been too forgiving. The council will speak to the health and education ministries and find common ground," he told disgruntled community members.
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