Nkurenkuru faces N$18.9m deficit, stalled projects and land disputes
The Nkurenkuru Town Council ended the 2023/24 financial year with deepening financial troubles that stalled key services and raised concerns over how land was allocated.
Residents continued to face inadequate water supply, poor sanitation, and limited refuse collection, while several capital projects were left incomplete due to budget shortfalls.
At the same time, the allocation of erven was marred by irregularities and possible favoritism, undermining public trust.
Records showed that only 23 erven were sold, bringing in N$371 250, despite demand for plots far exceeding supply.
The council’s financial statements revealed that it generated N$29.5 million in revenue, more than half of which (N$16.3 million, or 55%) came from central government subsidies.
Steep increase
Despite this, the council closed the year with an accumulated deficit of N$18.9 million, a steep increase from the N$6.8 million deficit in 2022.
Rising operational costs placed further strain on the institution. Employee-related expenses consumed N$20.7 million, leaving little room for service delivery or infrastructure upgrades.
By year-end, the council also owed N$11.9 million to creditors.
According to the Auditor-General’s report pointed at unauthorised expenditure, unreconciled accounts, and missing supporting documents as major weaknesses in the council\'s financial management.
The report said these findings reinforced long-standing calls for stricter compliance with the Local Authorities Act and stronger oversight of council spending.
Nkurenkuru’s growing dependence on government transfers, the report further noted, highlighted its limited ability to raise sufficient local revenue.
The report recommended improving debt collection, tightening internal controls, and focusing resources on essential services before taking on new capital projects.
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Residents continued to face inadequate water supply, poor sanitation, and limited refuse collection, while several capital projects were left incomplete due to budget shortfalls.
At the same time, the allocation of erven was marred by irregularities and possible favoritism, undermining public trust.
Records showed that only 23 erven were sold, bringing in N$371 250, despite demand for plots far exceeding supply.
The council’s financial statements revealed that it generated N$29.5 million in revenue, more than half of which (N$16.3 million, or 55%) came from central government subsidies.
Steep increase
Despite this, the council closed the year with an accumulated deficit of N$18.9 million, a steep increase from the N$6.8 million deficit in 2022.
Rising operational costs placed further strain on the institution. Employee-related expenses consumed N$20.7 million, leaving little room for service delivery or infrastructure upgrades.
By year-end, the council also owed N$11.9 million to creditors.
According to the Auditor-General’s report pointed at unauthorised expenditure, unreconciled accounts, and missing supporting documents as major weaknesses in the council\'s financial management.
The report said these findings reinforced long-standing calls for stricter compliance with the Local Authorities Act and stronger oversight of council spending.
Nkurenkuru’s growing dependence on government transfers, the report further noted, highlighted its limited ability to raise sufficient local revenue.
The report recommended improving debt collection, tightening internal controls, and focusing resources on essential services before taking on new capital projects.
[email protected]
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