Reho between rock and hard place
The Rehoboth council is complaining that a payment deal with NamWater is making it impossible for it to pay NamPower for electricity.
The Rehoboth town council CEO, Christophe /Uirab, says NamWater forced the council into a prepaid water agreement which makes it difficult for them to pay the town's electricity bills on time.
The prepayment impacts on the already slim reserves and income of the council.
This comes at a time when NamPower has demanded payment of N$36 million, of which N$28 million is overdue debt, before the end of this month from the council.
In a letter dated 9 August, the power utility informed the council: “The unpaid money reflects badly on our balance sheet. The situation has become unbearable and we urgently seek a meeting with your management and council to discuss the settlement of the debt.”
/Uirab yesterday confirmed this to Namibian Sun and said there was not much they could do because they simply did not have the money.
“The biggest problem is the pressure that we get from NamWater with the prepaid water system. We cannot afford this; it is time that the government comes to our rescue. The backlog in the council is very serious,” said /Uirab.
He argues that they were left with no option but to agree to NamWater's prepaid water system.
The town's outstanding water bill stands at N$29 million.
Besides making payments in advance for water, the council is simultaneously expected to pay monthly instalments of N$700 000 in an effort to clear its N$29 million debt.
“If we do not pay that, then they will deduct the amount from the money that we paid for the units of prepaid water. And the worst part is that they can only update the units if they have received proof of payment,” /Uirab complained.
According to him, it costs the council N$2.5 million to supply the town with water for a month, half of which is lost because of old, leaky pipelines.
NamWater spokesperson John Shigwedha says there is no way that a town can be coerced into an agreement.
“We have worked out a situation that will be beneficial for NamWater and Rehoboth. The system automatically shut itself down and they are notified every day of how many units are remaining. The onus is really on them to make sure they have enough units. And this is good for them because they do not accrue any debt,” Shigwedha says.
JEMIMA BEUKES
The prepayment impacts on the already slim reserves and income of the council.
This comes at a time when NamPower has demanded payment of N$36 million, of which N$28 million is overdue debt, before the end of this month from the council.
In a letter dated 9 August, the power utility informed the council: “The unpaid money reflects badly on our balance sheet. The situation has become unbearable and we urgently seek a meeting with your management and council to discuss the settlement of the debt.”
/Uirab yesterday confirmed this to Namibian Sun and said there was not much they could do because they simply did not have the money.
“The biggest problem is the pressure that we get from NamWater with the prepaid water system. We cannot afford this; it is time that the government comes to our rescue. The backlog in the council is very serious,” said /Uirab.
He argues that they were left with no option but to agree to NamWater's prepaid water system.
The town's outstanding water bill stands at N$29 million.
Besides making payments in advance for water, the council is simultaneously expected to pay monthly instalments of N$700 000 in an effort to clear its N$29 million debt.
“If we do not pay that, then they will deduct the amount from the money that we paid for the units of prepaid water. And the worst part is that they can only update the units if they have received proof of payment,” /Uirab complained.
According to him, it costs the council N$2.5 million to supply the town with water for a month, half of which is lost because of old, leaky pipelines.
NamWater spokesperson John Shigwedha says there is no way that a town can be coerced into an agreement.
“We have worked out a situation that will be beneficial for NamWater and Rehoboth. The system automatically shut itself down and they are notified every day of how many units are remaining. The onus is really on them to make sure they have enough units. And this is good for them because they do not accrue any debt,” Shigwedha says.
JEMIMA BEUKES
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