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Tuesday, September 2, 2003 - Web posted at 8:53:35 GMT

Govt says no water bail outs

LINDSAY DENTLINGER

THE Ministry of Local and Regional Government and Housing says there is no way it will bail out municipalities and other bodies who have had their water supply reduced for failing to settle debts owed to the bulk water supplier, NamWater.

The towns of Rundu, Katima Mulilo and Opuwo are still having to deal with either water shut downs during the day or slower water flow, after NamWater took action against them a month and a half ago.

The Ministry's Permanent Secretary Erastus Negonga told The Namibian yesterday that paying their bills for them is not a solution to the problem.

"There is no point.

It doesn't help if the Ministry pays their debts, but they continue to accrue," said Negonga.

Instead he says towns should be improving on their debt recovery mechanisms.

Negonga referred to the N$6 million the Ministry gave to the Rundu Town Council last year to pay its debts, which had not had much impact on the overall total owed.

The Rundu Town Treasurer Ludwig Thikusho told The Namibian yesterday that it still owes NamWater in the region of N$5 million.

He claimed that the Council is making regular payments to the water utility as cash flow allows, but that the interest on overdue amounts was keeping the bill high.

"The first week was difficult, but they are coping now," said Thikusho of residents who have to deal with regular water shutdowns.

The Town Council is scheduled to meet with NamWater later this month to discuss the matter.

At Katima Mulilo, the situation is not any better.

Discussions between NamWater and the Town Council to resolve the situation have ended in deadlock.

As a result the town's residents are also having to deal with no water during certain periods of the day.

Officials say there is simply not enough money to settle their account.

But insiders also indicate that the town is hesitant to enter into a service level agreement with NamWater, fearing a loss of control over tariffs.

Opuwo is another town where the water supply has been reduced by half.

Officials contacted by The Namibian were reluctant to discuss the matter, but NamWater has indicated that it has entered into discussions with the town.

The Ministries of Basic Education and Lands, Resettlement and Rehabilitation, are also still experiencing a reduction in water supply.

The Health Ministry has been exempt from this action.

NamWater spokesperson Johannes Shigwedha said the Health Ministry had been exempted for humanitarian reasons to ensure that hospitals do not suffer.

"We respect our clients, but they must understand that the service of providing water is very expensive.

We have no other source of income, they must take responsibility for their accounts," he told The Namibian.

Although he would not reveal a figure, Shigwedha said that despite the water reductions and financial arrangements made with many of its clients, it has not made a significant recovery of the monies it is owed.

In July, the water corporation said it was owed more than N$90 million.

It is, however, not only urban areas having to take the brunt for unpaid bills, but rural areas especially in the north and east of the country, which are also having to deal with the water cuts.

Earlier the Ministry of Agriculture, Water and Rural Development said it was not responsible for the bills for rural water supply, and is now working with NamWater to arrange an alternative billing system.

The Acting Under-Secretary in the Agriculture Ministry, Abraham Nehemia, said the issue of rural water supply is a complicated one.

"It is not just about water, but about responsibility, mobilising the community, and about training," he said.

Nehemia was, however, confident that in time the situation will be resolved.

According to him, arrangements have already been made for some communities to settle their dues directly with NamWater, but in the meantime it is footing the bill for those who have not yet been linked to NamWater's billing system.

A number of settlements in Omaheke are also believed to be faced with water cuts, because of the Regional Council's failure to pay up.

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