Six govt institutions owe Okahandja N$1.37m

A total of 753 business accounts in Okahandja have outstanding municipal debts, as the municipality continues to pursue collections following a directive to disconnect water services to defaulting government institutions and businesses.

The directive, issued by urban and rural development minister James Sankwasa, sought to strengthen municipal revenue collection by compelling local authorities to act against customers who had failed to settle their accounts.

However, information provided by the Okahandja municipality shows that only a limited number of business accounts ultimately fell within the scope of the directive.

The municipality said most of the business accounts identified during the exercise had already been disconnected before the directive was issued.

Others were linked to inactive businesses that had ceased operations or vacated their premises, insolvent entities, vacant plots or accounts that remained under dispute or were awaiting administrative feedback.

These accounts continue to be managed under the municipality’s credit control and debt collection policy. Several delinquent accounts have also been listed with the Information Trust Corporation as part of ongoing debt recovery efforts.

Government offices

Only six government institutions fell within the directive at the time, with a combined outstanding balance of N$1 373 840.29, the municipality confirmed.

The works and transport and defence ministries as well as the judiciary responded by engaging with the municipality and taking steps to regularise their accounts. This resulted in the settlement of most, but not all, of their outstanding municipal debt.

The municipality did not disclose how many businesses or government institutions had settled their debts since the directive was issued. Some government accounts remain unresolved.

Accounts linked to the education ministry and safety and security ministries have been placed on hold while payment allocations are verified and disputes resolved, the municipality said.

Accounts administered by the health ministry, including those for hospitals and clinics, were excluded from the disconnection process because of operational requirements and overriding public interest considerations.

The municipality’s response shows that the directive’s implementation was largely determined by the legal and administrative status of individual accounts, limiting the number of businesses and government institutions ultimately subject to water disconnections.

The municipality said it currently administers 9 460 active accounts, comprising 8 593 formal accounts and 867 accounts in informal settlements.