Otjiwarongo tackles bad debt
JANA-MARI SMITH
With more than N$43 million owed to the Otjiwarongo municipality, the local authority has deployed eight debt collectors and begun to suspend services to non-paying customers.
Otjiwarongo CEO Ismael /Howoseb told Namibian Sun last week that although the latest auditor-general report revealed only a few accounting issues at the town, the town’s “weak point” was the issue of outstanding debts.
“The non-payment for municipal services is a worrisome issue,” he said. He said otherwise the town’s highly qualified and dedicated financial services department ensured that the town was line with the rest of its accounting duties.
In order to tackle the bad debt, this year the council approved a request to appoint eight contract workers to act as debt collectors, in an effort to reduce the N$43 million in bad debts.
In May the team started knocking on the doors of residents with outstanding accounts.
/Howoseb said the team was also focusing on educating the public on the necessity of paying their municipal rates and taxes.
“They explain why it is necessary to pay for municipal services. Since they began this month, we have seen a definite response. People arrive at our offices in order to make arrangements for settling their accounts.”
He said the municipality had also begun to cut services to residents who “act stubbornly.”
Big praise
While the outstanding millions are mainly owed by residents and businesses in the Orwetoveni residential area, /Howoseb added that the pensioners in that area were among the municipality’s best customers.
“We don’t have any problems with the pensioners. They are some of the best clients and pay on time and regularly. We have a problem more with the younger people and some of the government employees. We struggle with them.”
He said the new strategy of door-to-door debt collection was still being tested but he hoped it would make a drastic difference.
“I think by the end of June we should be able to see overall results. Then we can say whether it is effective or not.”
If the strategy proves to be effective, /Howoseb said the council would consider permanently employing a team of debt collectors.
With more than N$43 million owed to the Otjiwarongo municipality, the local authority has deployed eight debt collectors and begun to suspend services to non-paying customers.
Otjiwarongo CEO Ismael /Howoseb told Namibian Sun last week that although the latest auditor-general report revealed only a few accounting issues at the town, the town’s “weak point” was the issue of outstanding debts.
“The non-payment for municipal services is a worrisome issue,” he said. He said otherwise the town’s highly qualified and dedicated financial services department ensured that the town was line with the rest of its accounting duties.
In order to tackle the bad debt, this year the council approved a request to appoint eight contract workers to act as debt collectors, in an effort to reduce the N$43 million in bad debts.
In May the team started knocking on the doors of residents with outstanding accounts.
/Howoseb said the team was also focusing on educating the public on the necessity of paying their municipal rates and taxes.
“They explain why it is necessary to pay for municipal services. Since they began this month, we have seen a definite response. People arrive at our offices in order to make arrangements for settling their accounts.”
He said the municipality had also begun to cut services to residents who “act stubbornly.”
Big praise
While the outstanding millions are mainly owed by residents and businesses in the Orwetoveni residential area, /Howoseb added that the pensioners in that area were among the municipality’s best customers.
“We don’t have any problems with the pensioners. They are some of the best clients and pay on time and regularly. We have a problem more with the younger people and some of the government employees. We struggle with them.”
He said the new strategy of door-to-door debt collection was still being tested but he hoped it would make a drastic difference.
“I think by the end of June we should be able to see overall results. Then we can say whether it is effective or not.”
If the strategy proves to be effective, /Howoseb said the council would consider permanently employing a team of debt collectors.
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