Three northern towns tackle residential debt
Town councils get strict about money owed
Since appointing RedForce, Oshakati town council has seen a drop in money owed by residents from N$83 million to N$70 million.
The three northern towns of Ongwediva, Ondangwa, and Oshakati have been struggling with debt collection from their residents, and each is pursuing strategies to address the problem.
So far, Oshakati has opted to rope in the help of a debt collection company, RedForce, which they say has proven successful so far.
Oshakati's chief executive officer, Timoteus Namwandi, said since appointing a debt collector, there has been a promising decrease in their debtor's balance.
Residents previously owed Oshakati council about N$83 million, which has decreased to N$70 million and continues to decline, Namwandi said.
Long-standing problem
Meanwhile, Ondangwa town council chief executive officer Ismael Namugongo revealed that their municipal debt skyrocketed from N$60 million to N$102 million owed to the council in rates and services.
Namugongo said unpaid bills have been a thorn in the flesh of the council for years.
He said it appears that residents prioritise personal payments over settling their municipal bills.
The CEO said the town has formulated a plan to recover the debts and has appointed a company to manage the council's accounts.
"We appointed a debt management company to manage our books to separate those who are unable to pay, such as the pensioners who might need assistance with settling their accounts," he said.
Ongwediva makes plan
As of February, the Ongwediva town council recorded N$67 million debt on municipal services rendered.
Ongwediva CEO Damien Egumbo said they also have a challenge with an increasing debtors' account.
Egumbo said for too long they have been lenient with residents, but they are currently working on finding ways to address the problem.
"We also could not increase our rates for the past years because of the Covid-19 impact, but now we have to review some of those decisions," he said.
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So far, Oshakati has opted to rope in the help of a debt collection company, RedForce, which they say has proven successful so far.
Oshakati's chief executive officer, Timoteus Namwandi, said since appointing a debt collector, there has been a promising decrease in their debtor's balance.
Residents previously owed Oshakati council about N$83 million, which has decreased to N$70 million and continues to decline, Namwandi said.
Long-standing problem
Meanwhile, Ondangwa town council chief executive officer Ismael Namugongo revealed that their municipal debt skyrocketed from N$60 million to N$102 million owed to the council in rates and services.
Namugongo said unpaid bills have been a thorn in the flesh of the council for years.
He said it appears that residents prioritise personal payments over settling their municipal bills.
The CEO said the town has formulated a plan to recover the debts and has appointed a company to manage the council's accounts.
"We appointed a debt management company to manage our books to separate those who are unable to pay, such as the pensioners who might need assistance with settling their accounts," he said.
Ongwediva makes plan
As of February, the Ongwediva town council recorded N$67 million debt on municipal services rendered.
Ongwediva CEO Damien Egumbo said they also have a challenge with an increasing debtors' account.
Egumbo said for too long they have been lenient with residents, but they are currently working on finding ways to address the problem.
"We also could not increase our rates for the past years because of the Covid-19 impact, but now we have to review some of those decisions," he said.
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