City scraps N$191 million debt
In a bid to release the poorest of the poor of their municipal debt, the City of Windhoek has written it off with the proviso that prepaid meters are installed.
City of Windhoek council members have agreed to write off N$191 million in unpaid municipal debts owed by some of the city's poorest residents after it was deemed “uneconomical to pursue”.
At the 6th ordinary council meeting held last Thursday “irrecoverable debts owed to council by some of our pensioners and vulnerable residents” was scrapped from the books, City officials announced at a press conference on Friday.
The municipality's review of the debt book as of 30 April stood at N$642 million, of which some of the dormant debts are as old as three years and have only accrued interest.
The N$191 078 352.03 irrecoverable debts were calculated at the end of February this year, and have been deemed to be “either irrecoverable or are in respect of pensioners and vulnerable residents who are unable to pay the arrears on their municipal accounts, even if they were to be allowed to make arrangements to pay off the debts,” City officials explained.
The write-off was conditional to replace conventional meters to prepaid meters of those whose debt has been scrapped.
“To ensure sustainability in this regard, conversion is deemed critical in order to ensure that pensioners and vulnerable account holders do not fall back into debt.”
The City has started exploring available technologies with regard to the conversion of conventional meters to prepaid meters.
On Thursday night, Windhoek mayor Muesee Kazapua said the installation of prepaid meters “will not only enable our pensioners to sleep in peace, but will also make it easy for us to collect the much-needed monies, in order for us to continue to render adequate services to our people.”
In May 2017, the City announced it was feeling the pressure of total unpaid debts by residents, government agencies and businesses with more than N$500 million accumulated through unpaid rates and taxes, as well as municipal bills for sewerage and water services.
The City at the time attributed N$12.5 million to pensioners and vulnerable residents, and N$105 million to various government institutions.
While the City has struggled to contain the outstanding debt issue, it is also addressing the land and housing shortage. Kazapua on Thursday announced that members of the Iituyeni Saving Group in Havana informal settlement's Zimbabwe Street will soon commence with the construction of houses. He said the group, affiliated to the Shack Dwellers Federation of Namibia, bought land from the City four years ago, but could not start building despite the necessary funds being in place.
“The obstacles were these two outstanding issues, namely the final road level design and the water and sewer reticulation layout”, both of which have been successfully completed.
A thorn in the city's side
On Friday, the City also addressed the surging number of “pirate taxis on our roads. These taxis are mostly used to commit robberies in the city.”
The issue of illegal electrical connections was also addressed, and officials warned that unauthorised electricity connection pose a danger to residents. Anyone caught with an illegal connection can face a fine of up to N$8 600.
The steep increase in home burglaries was also addressed, in addition to motor vehicle theft, with the City urging residents to remain vigilant and report suspicious activities in their neighbourhoods.
JANA-MARI SMITH
At the 6th ordinary council meeting held last Thursday “irrecoverable debts owed to council by some of our pensioners and vulnerable residents” was scrapped from the books, City officials announced at a press conference on Friday.
The municipality's review of the debt book as of 30 April stood at N$642 million, of which some of the dormant debts are as old as three years and have only accrued interest.
The N$191 078 352.03 irrecoverable debts were calculated at the end of February this year, and have been deemed to be “either irrecoverable or are in respect of pensioners and vulnerable residents who are unable to pay the arrears on their municipal accounts, even if they were to be allowed to make arrangements to pay off the debts,” City officials explained.
The write-off was conditional to replace conventional meters to prepaid meters of those whose debt has been scrapped.
“To ensure sustainability in this regard, conversion is deemed critical in order to ensure that pensioners and vulnerable account holders do not fall back into debt.”
The City has started exploring available technologies with regard to the conversion of conventional meters to prepaid meters.
On Thursday night, Windhoek mayor Muesee Kazapua said the installation of prepaid meters “will not only enable our pensioners to sleep in peace, but will also make it easy for us to collect the much-needed monies, in order for us to continue to render adequate services to our people.”
In May 2017, the City announced it was feeling the pressure of total unpaid debts by residents, government agencies and businesses with more than N$500 million accumulated through unpaid rates and taxes, as well as municipal bills for sewerage and water services.
The City at the time attributed N$12.5 million to pensioners and vulnerable residents, and N$105 million to various government institutions.
While the City has struggled to contain the outstanding debt issue, it is also addressing the land and housing shortage. Kazapua on Thursday announced that members of the Iituyeni Saving Group in Havana informal settlement's Zimbabwe Street will soon commence with the construction of houses. He said the group, affiliated to the Shack Dwellers Federation of Namibia, bought land from the City four years ago, but could not start building despite the necessary funds being in place.
“The obstacles were these two outstanding issues, namely the final road level design and the water and sewer reticulation layout”, both of which have been successfully completed.
A thorn in the city's side
On Friday, the City also addressed the surging number of “pirate taxis on our roads. These taxis are mostly used to commit robberies in the city.”
The issue of illegal electrical connections was also addressed, and officials warned that unauthorised electricity connection pose a danger to residents. Anyone caught with an illegal connection can face a fine of up to N$8 600.
The steep increase in home burglaries was also addressed, in addition to motor vehicle theft, with the City urging residents to remain vigilant and report suspicious activities in their neighbourhoods.
JANA-MARI SMITH
Comments
Namibian Sun
No comments have been left on this article