Ministries owe Windhoek over N$20m

Government ministries owe the Windhoek municipality more than N$20 million in municipal arrears, the City has confirmed.

“The total outstanding amount owed by government ministries currently stands at approximately N$20 025 932,” head of corporate communications Lydia Amutenya told Namibian Sun.

The disclosure comes amid heightened debate over efforts by local authorities to recover unpaid debts from government institutions, businesses and residents.

According to the City, disconnections of water and electricity services for overdue accounts have yielded positive results and remain a critical component of its credit control strategy.

"These measures encourage payment compliance, prompt the settlement of outstanding accounts, and facilitate the conclusion of payment arrangements with customers experiencing financial difficulties," Amutenya said.

She said disconnections of defaulting accounts form part of the City's ongoing credit control and debt collection processes and are implemented routinely when account holders fail to meet payment deadlines.

Sankwasa’s directive

The City’s comments follow a recent directive by urban and rural development minister James Sankwasa for local authorities to disconnect water and electricity services to large public and private institutions that fail to settle outstanding municipal accounts.

“There is no exemption. Ministries and government institutions are required to pay for services rendered by local authorities,” he said.

In a statement issued on 21 May, the minister warned that widespread non-payment by government entities and major businesses has left many local authorities struggling to provide services. “The non-payment for services rendered to government ministries, big businesses and other government institutions by the local authorities has rendered most, if not all, local authorities bankrupt and unable to render or manage the required services to the residents,” the circular stated.

Sankwasa also questioned why municipalities allegedly frequently disconnect services to ordinary residents with relatively small debts while allowing institutions with substantially larger arrears to continue receiving services.

“In most cases, local authorities are suspending water and electricity service to poor residents who may in some instances only owe a mere N$1 500, leaving government ministries, government institutions and big businesses owing thousands or nearly a million,” he said.