The debts have accumulated over the last three years.

Council last approved a debt write-off in 2000.

The amount authorised by the Council as irrecoverable, is less than two per cent of total debts owed to the Municipality which, at the end of June, stood at N$196,3 million.

On recommendation of the Management Committee, Council deliberated over three lists: those owing under N$100, debtors regarded as untraceable to settle debts for housing and erf sales, and normal services accounts in excess of N$100.

Chairman of the Management Committee, Bjorn von Finckenstein, told fellow councillors that despite Council agreeing to write off the debt, it will not give up trying to recover what it is owed.

"It is an accounting exercise, it doesn't mean that the debts will disappear.

The finance department are trying to prevent the debts," he added.

About 700 residents and businesses are listed as owing the City less than N$100 for basic services - almost N$30 000 in total.

Some are listed as owing a little as N$0.01 (one cent), but a financial municipal official indicated to The Namibian that, in some instances, the amounts registered are as a result of accounting errors and disputes.

Said Von Finckenstein: "Many of the smaller debts are traceable and these people should pay".

The Council also heard that sometimes service consumptions are added to accounts after the clearance payment has been made and a certificate issued to prove that property has been vacated.

The City declares debtors untraceable and debts irrecoverable after a summons has been issued and debt collectors have been unsuccessful after two attempts in recovering the outstanding amount.

Of the total bad debt amount, more than N$135 000 is owed for housing and erf sales - amounts ranging from N$878 to more than N$32 000.

Some of the defaulters have been reported to the Information Trust Corporation (ITC), which blacklists people with bad debts.

The largest proportion of the debt - N$2,3 million - is for service accounts in excess of N$100.

Some individual amounts are as high as N$40 000.

Many of those registered as defaulters under this category, are as a result of deceased estates, disputed amounts after clearance, liquidated and bankrupt companies and high legal costs involved in the debt recovery.

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