Rundu council in the pound seats
The cash-strapped Rundu town council does not yet know what to do with a sudden N$20 million windfall.
25 February 2021 | Local News
The Rundu town council has not yet decided what to do with the millions of dollars recovered by a debt collector from defaulting stakeholders.
Namibian Sun is reliably informed that Redforce Debt Management has recovered about N$20 million on behalf of the council - money which the local authority had not budgeted for.
With millions now in its kitty, the council is yet to decide what to do with the money.
Acting Rundu CEO Sam Nekaro says the funds will either be used to settle outstanding debts or to cover the town’s budget deficit.
“Our budget is N$174 million. For us to carry out our budget it means we have to collect almost N$15 million per month but we only collect about N$7 million,” Nekaro explained.
“We can either cater for the deficit of our budget or we can see how to prioritise the likes of NamWater to clear our debts.”
Redforce was appointed by the Rundu town council to recover close to half a billion owed by residents. The contract, entered into in October 2020, is valid for three years.
The council has been failing to deliver services to its residents and the town is known for being dirty, having constant water shortages and streets ridded with potholes.
Namibian Sun in September last year reported that defaulters in Rundu's 11 residential areas owed the council N$45 million for water alone, with the highest defaulter owing N$432 000.
With over N$100 million owed to NamWater, the town council has been unable to settle its water debt over the years.