City plans to help poor manage debts
City plans to help poor manage debts

City plans to help poor manage debts

A Windhoek politician argues there was no moral justification for putting people on the street, because of municipal debts.
Jana-Mari Smith
The Windhoek municipality has refuted accusations by a Windhoek councillor and others that it employs a cost-recovery strategy by selling the homes of the city's most vulnerable people, in order to recover unpaid municipal debts.

“As per our credit control policy, employs all alternative methods to recover debts owed to it. It is only when all credit control measures are exhausted, that the City of Windhoek hands over the process for legal collection,” the City of Windhoek said.

The city recently announced that non-payment of bills in the region of N$500 million was a burden the city is forced to shoulder on its own, and said it is important to note that the city operates on a cost-recovery basis and was severely challenged by unpaid bills.

“It is important to understand that the City of Windhoek can only sustainably render services if it is equitably compensated for by the end-users,” spokesperson Lydia Amutenya told Namibian Sun.

In a May interview, city officials said that around N$12 million of that amount was owed by pensioners and vulnerable people, while more than N$105 million was owed by government institutions.

Amutenya said while the city does not categorise the unpaid bills by suburbs “per se, most challenges are in the north-western suburbs of the city”, where the majority of informal and poorer neighbourhoods are situated.

She said the city recognises that several factors contribute to the inability to pay bills, including “unemployment and high cost bulk supply”.

However, she said it is important to note that while “some elderly and other vulnerable members of our society can be genuinely challenged to afford municipal services, there are also those with different priorities who have the means to pay for these services, but first pay all other bills and the municipal account is the last item budgeted for – to be paid if and when there is money left over.”

Overall, the city's operations are based on a cost-recovery basis and “thus no lenience or free municipal services can be provided, except the municipal buses where provision is made for senior citizens and residents with disabilities.”

In response to queries of how the city could assist the most vulnerable members of Windhoek whose unpaid debts could lead to evictions, the city has proposed plans to install pre-payment services for water and electricity to be implemented in the 2017/2018 financial year.

“Those are the most contributing factors to debts, especially for our senior and vulnerable citizens, and this will enable them to manage their consumption optimally.”

Emphasising a statement made by Windhoek mayor Muesee Kazapua last week, she said that the city urges all stakeholders to “contribute to the plight of the elderly and other vulnerable people” and step up to share the load that the municipality currently carries on its own.

The issue of home losses due to unpaid debts was spotlighted recently when Windhoek councillor Joseph Kauandenge intervened on behalf of a 60-year-old Katutura pensioner, who was facing eviction because of N$90 000 unpaid municipal bill. Subsequently, the eviction was put on hold after Kauandenge tabled a motion at the council meeting last month, in which he asked that a strategy be created and implemented to address the “burning issue” of evictions in order to prevent pushing more people onto the streets, and forcing them to illegally occupy land in a desperate bid for a home.

Kauandenge claimed that he knew of 10 to 15 vulnerable families who were facing homelessness in low-income areas after the city began legal recovery processes. He claimed there was no “moral justification” for putting people on the street, because of these debts.

He added that while millions are outstanding by cash-strapped and vulnerable residents, the outstanding debts by government institutions were higher. “We can't just pick on the most vulnerable, and ignore those institutions that have money, but do nothing about it. It's called selective morality.”

JANA-MARI SMITH

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Namibian Sun 2024-04-25

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Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 327.27/OZ UP +0.47% | Copper US$ 4.52/lb UP +1.96% | Zinc US$ 2 872.40/T UP 2.35% | Brent Crude Oil US$ 88.09/BBP UP +0.10% | Platinum US$ 904.42/OZ UP +0.25%