Govt, businesses owe N$160m to Rundu municipality

Rundu’s development ambitions are under increasing pressure due to N$160 million in unpaid municipal debt owed by large public and private institutions.

The council warned that the arrears are crippling service delivery, delaying infrastructure maintenance and threatening key development projects across the town.

Rundu Town Council spokesperson Benjamin Makayi said the local authority is struggling to fulfil its mandate as millions of dollars remain outstanding on municipal accounts.

"The debt is affecting the operations of the council immensely and negatively," he told Namibian Sun.

"All the services that we render require money. Without money, even the development projects that people need in town become very difficult for the council to undertake."

For example, the municipality must have adequate resources on hand to respond to emergencies such as major pipe bursts and to carry out routine maintenance on roads, water networks and other public infrastructure.

"In a nutshell, the council needs funds in order to maintain all infrastructure and implement development projects in town,” Makayi said.

He urged debtors to recognise the critical role they play in the town's development, stressing that businesses and institutions should be viewed as partners in building Rundu rather than adversaries.

"They are the backbone of our town," Makayi said.

"We should not act as enemies but as partners in development. We need their support so that we can develop this town together."

Ongoing discussions

In an effort to improve revenue collection and recover outstanding debts, the council has intensified engagement with debtors.

Makayi revealed that the municipality recently met with government institutions and businesses owing money.

The meeting formed part of a broader strategy aimed at recovering debt without immediately resorting to punitive measures such as service disconnections.

"The meeting was successful and we will continue engaging with them so that this can be resolved without taking actions such as discontinuing services," he said.

Makayi indicated that the council intends to adopt a firmer approach going forward.

"We are going to launch an aggressive campaign to ensure that each and every institution and business adheres to the council's payment policy for the services we deliver to them," he said.

The N$160 million owed by government institutions and businesses comes as the council itself faces mounting financial pressure from unpaid obligations to utility providers.

Namibian Sun previously reported that the council's total debt to utilities such as NamWater and NamPower has surpassed N$600 million. The council also revealed that, of approximately 18 000 account holders, only 5 000 are actively paying for municipal services.