Uutoni advises against external debt collectors
Urges local authorities to boost internal systems
Urban and rural development minister Erastus Uutoni has urged municipal residents to play their part in paying for municipal services.
While acknowledging that residents defaulting on municipal bills are forcing local authorities to enlist debt collectors, urban and rural development minister Erastus Uutoni says the solution lies in engagement and strengthening internal debt collection strategies.
The minister was addressing an increasing trend of local authorities appointing debt collection agencies to recover millions in outstanding debt.
Reports by Namibian Sun have, however, highlighted the conflict that often ensues between residents and councils once debt agencies are appointed.
Towns such as Katima Mulilo, Windhoek, Oshakati and Ondangwa are among those that have enlisted debt collection companies in recent times.
Namibian Sun has learnt that Grootfontein municipality is also in the process of enlisting a debt collection company to recover close to N$200 million owed by defaulting residents.
Put systems in place
However, in an interview with Namibian Sun over the weekend, Uutoni said debt collection agencies are not the solution.
He believes that local authorities resort to such measures because they lack proper systems.
“Local authorities should reorganise themselves. It’s a problem of reorganisation. They do not have systems in place to deal with their communities. They should have their own debt collection system,” Uutoni advised.
“They should establish a platform where they engage. It's true that it's very challenging, but once you have a system that deals with the community, after which they will hear what the municipality is saying and make some kind of arrangement," he said.
Community at fault
Uutoni acknowledged that local authorities often turn to debt collection companies because many residents are not willing to pay for services.
“The communities, if they don’t want to pay, create a situation where the local authorities have to take such a decision. You try this, people are just quiet, and you try this, and the people are just quiet. Now what else do you think the local authority will do? So it’s them, the community, who are creating a situation of this nature,” Uutoni argued.
“You are drinking water and you don’t want to pay. You are staying in a municipal area and you don’t want to pay rates and taxes. For local authorities to survive they need the money from rates and taxes," he said.
“As a community member, you expect to get water, refuse collection and other services. Where do you think the local authority will get the money to deliver these services?"
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The minister was addressing an increasing trend of local authorities appointing debt collection agencies to recover millions in outstanding debt.
Reports by Namibian Sun have, however, highlighted the conflict that often ensues between residents and councils once debt agencies are appointed.
Towns such as Katima Mulilo, Windhoek, Oshakati and Ondangwa are among those that have enlisted debt collection companies in recent times.
Namibian Sun has learnt that Grootfontein municipality is also in the process of enlisting a debt collection company to recover close to N$200 million owed by defaulting residents.
Put systems in place
However, in an interview with Namibian Sun over the weekend, Uutoni said debt collection agencies are not the solution.
He believes that local authorities resort to such measures because they lack proper systems.
“Local authorities should reorganise themselves. It’s a problem of reorganisation. They do not have systems in place to deal with their communities. They should have their own debt collection system,” Uutoni advised.
“They should establish a platform where they engage. It's true that it's very challenging, but once you have a system that deals with the community, after which they will hear what the municipality is saying and make some kind of arrangement," he said.
Community at fault
Uutoni acknowledged that local authorities often turn to debt collection companies because many residents are not willing to pay for services.
“The communities, if they don’t want to pay, create a situation where the local authorities have to take such a decision. You try this, people are just quiet, and you try this, and the people are just quiet. Now what else do you think the local authority will do? So it’s them, the community, who are creating a situation of this nature,” Uutoni argued.
“You are drinking water and you don’t want to pay. You are staying in a municipal area and you don’t want to pay rates and taxes. For local authorities to survive they need the money from rates and taxes," he said.
“As a community member, you expect to get water, refuse collection and other services. Where do you think the local authority will get the money to deliver these services?"
- [email protected]
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