Consumers owe N$68.8m to Otji municipality

Consumers owed the Otjiwarongo municipality N$68.8 million at the end of the 2024/25 financial year, with nearly four-fifths of the debt unpaid for more than 150 days, an internal audit has found.The audit found that N$54.3 million of the debt had been outstanding for more than 150 days, with the municipality having been owed the money for at least five months.Pensioners accounted for N$11.3 million of the outstanding debt, of which N$10.1 million had also remained unpaid for more than 150 days.The report also found that money owed to the municipality by customers and other debtors for services and other charges increased from N$9.1 million to N$19.7 million during the period under review.The municipality collected only 68.75% of the money it billed, meaning almost one-third of the revenue it expected to receive was not collected.The audit linked the weak collection rate to the high level of unpaid consumer accounts. Management told auditors that measures had been introduced to improve collections, including the establishment of a call centre to follow up on outstanding accounts.Cash reserves downCouncil had also resolved to write off N$10.57 million in pensioner debt, according to management. However, the write-off was still awaiting approval from the relevant ministry.The municipality's financial position also weakened during the year, with its cash reserves falling from about N$81 million to N$20.5 million.Of this amount, about N$18.3 million was available for day-to-day operations. Management projected that the municipality would need about N$38 million in government subsidies to help meet its salary obligations.The audit further found that the municipality spent only N$19.5 million on planned infrastructure and other major projects, representing 29.8% of its approved budget for such work.Two major projects – the emergency response unit and sewer line construction – recorded no spending during the period reviewed.According to the auditors, the low spending pointed to delays in carrying out infrastructure projects and meeting planned service-delivery targets.The auditors recommended that management improve its efforts to recover money owed to the municipality, settle outstanding financial balances and speed up approved infrastructure projects.They also recommended that management regularly report to the audit committee and council on the steps being taken to address the problems identified in the audit.

Consumers owe N$68.8m to Otji municipality

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Namibian Sun 2026-10-07

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Consumers owe N$68.8m to Otji municipality

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Namibian Sun 2026-10-07

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