Sankwasa cracks down on council finances

Urban and rural development minister James Sankwasa has signalled a tougher approach to municipal finances, warning that councils could forfeit government funding for failing to submit audited financial statements or strengthen revenue collection.

In a speech read on his behalf by Erongo governor Nathalia /Goagoses at the opening of the Association of Local Authorities in Namibia (ALAN) congress last Wednesday, Sankwasa said poor service delivery in many towns and cities could no longer be blamed solely on a lack of funding when councils fail to collect revenue due to them.

"Local authorities are often criticised for poor service delivery, including roads full of potholes, litter and overgrown streets. The usual defence is a lack of funds. While this may be understandable, it becomes self-defeating when councils fail to collect revenue owed to them," he said.

He reiterated a directive requiring local authorities to suspend water, electricity and other municipal services to government institutions, state-owned entities and businesses that have failed to settle outstanding accounts.

Many councils experience financial difficulties while significant amounts of money remain uncollected from debtors, he stressed.

"This directive is intended to help local authorities raise revenue and address criticism over poor service delivery. Councils that fail to implement the directive to suspend services for non-payment must not come running to the ministry for bailouts”.

Held under the theme 'Empowering Communities: Local Government as Catalyst for People-Centred Development, Inclusion and Social Justice', the congress focused on strengthening service delivery and accountability.

"Citizens must see action, not hear promises. Words must translate into clean water, decent housing, reliable waste management and opportunities for livelihoods," Sankwasa said.

The minister added that local authorities receive government subventions, yet many councils have failed to account for these funds through audits.

"I am reminding all mayors and chairpersons of management committees that my directive requires all local authorities to submit their audited financial statements to my office before the end of June," he added.

"Any local authority that fails to comply cannot expect funds appropriated for the 2026/27 financial year to be disbursed."

Empowering communities

Sankwasa also announced policy measures aimed at improving access to urban land.

"There will be no more situations where serviced land acquired from local authorities at low prices is resold at excessive profits by investors. Equally, there will be no more auctioning of land to the highest bidder by local authorities," he said.

He acknowledged that many urban residents continue to face inadequate housing, poor sanitation and limited access to essential services despite 36 years of independence.

"We must collectively find creative and innovative ways to mobilise our constituencies to improve living standards," he said.

Sankwasa said government is engaging the Government Institutions Pension Fund (Gipf) on possible mechanisms to support housing development initiatives by local authorities.

"Gipf has agreed to make a presentation to local authorities on possible solutions to housing and sanitation challenges," he said.

The minister also called for stronger recognition and financial sustainability of ALAN, while urging local authorities to improve operational management and strengthen cooperation with government through the implementation of existing policies and legislation.

He further emphasised greater accountability, transparency and collaboration among local authorities, regional councils, traditional authorities, civil society organisations and the private sector to accelerate development and improve living conditions across the country.

"Remember that a political position is temporary. It is granted and withdrawn by the people. Avoid slogans about hard work when there is little to show for it," Sankwasa said.