ACCOUNTS: The Windhoek municipality has seen a 60% drop in municipal debt owed by government institutions. PHOTO: FILE
ACCOUNTS: The Windhoek municipality has seen a 60% drop in municipal debt owed by government institutions. PHOTO: FILE

Windhoek govt arrears down 60%

Elizabeth Kheibes

The City of Windhoek has recorded a 60% reduction in municipal debt owed by government institutions, with the outstanding balance decreasing from approximately N$67 million in May to N$27 million in June.

Officials said an earlier outstanding figure of N$20 million did not include amounts that became due on 20 June, the due date for corporate accounts, which explains the difference between previously communicated figures and the latest debt position.

The updated figures reflect a more complete account of obligations owed by state entities to the municipality.

Over the same period, the City’s overall debtors’ balance declined from N$912 million to N$845 million, indicating a broader improvement in revenue collection beyond government institutions.

The reduction forms part of ongoing efforts to strengthen financial sustainability and improve compliance among account holders.

The City said the directive issued by the urban and rural development ministry has contributed positively to the improvements recorded and welcomed the development. It encouraged all residents and customers with outstanding accounts to honour their financial obligations, stating that consistent payments are essential to maintaining service delivery.

The municipality said timely payment of municipal accounts enables it to continue providing sustainable, efficient and uninterrupted services to all residents. Revenue collected from ratepayers and service users is used to fund essential services, including water, electricity, refuse removal and road maintenance.


Sankwasa pushes for improvements

Earlier this month, urban and rural development minister James Sankwasa told Namibian Sun that ministries and government institutions are required to pay for services rendered by local authorities.

“There is no exemption. Ministries or government institutions are required to pay for services rendered by local authorities. Neither the Local Authorities Act nor the State Finance Act, which authorises the annual budget that subvents state money to various local authorities, grants exemptions,” he said.

He said hospitals can make arrangements for monthly settlement of outstanding and current bills with respective local authorities but stressed that such arrangements should not be used to avoid payment obligations. “We must not destroy the country because of understandable but self-defeating reasons,” he said.

Sankwasa said criticism of local authorities over poor service delivery is often linked to limited financial resources, which are due to non-payment.

Comments

Namibian Sun 2026-07-06

No comments have been left on this article

Please login to leave a comment