Residents of the southern town say they have "no confidence" in the entire Council after their requests for an audience with councillors were rebuffed.

Chairperson of a Community-Based Committee, Lazarus Khairabeb, said the residents want the Minister of Regional, Local Government and Housing, Joel Kaapanda, to intervene and investigate "the whole fiasco" surrounding the controversial contract.

"People don't trust that Council is still capable of acting sincerely on their behalf in this issue.

In the first place it was their (councillors') negligence which threw the town in that mess, that's why they don't want to face the community," Khairabeb charged.

The Karasburg municipality has signed a 15-year long contract with Southern Electricity Service Company (SELCo), which has set its sights on taking over the delivery and management of power and water to local authorities throughout the South.

The company's contracts also give it the right "at any time" within 12 months of signing to "exercise a call option" to take over the operation and management of water networks.

The SELCo agreement has sparked widespread unhappiness among Karasburg residents who allege that the contract has resulted in escalating electricity costs at the town.

About a fortnight ago members of the community staged a demonstration and handed a petition in which they demanded an audience with the Town Council so that the could get clarity on the contract.

The Town Council, which maintains that there is nothing wrong with the SELCo contract, failed to meet the residents on Thursday and instead wrote them a letter detailing its position.

Defending the contract, Town Clerk Franciskus Witbooi pointed out that the document was signed in terms of the Council's "Resolution 206/2000" which was adopted on 26 July 2000 - the same day the contract was signed.

He stated that the majority of councillors were present at the formulation of the resolution and signing of the contract, contrary to allegations by the community that important decisions during the contract negotiations were taken without a quorum in the Council.

"On the matter of excessive profiteering and 100 to 250 percentage increases (in tariffs) indicated in your (residents') petition, my Council does not agree," Witbooi said.

"All electricity tariffs implemented in the Republic of Namibia went through the Electricity Control Board for approval, even the tariffs of SELCo in Karasburg".

Khairabeb told The Namibian that the community was not convinced by the Town Clerk's explanations and hence was exploring the possibility of declaring a dispute in terms of existing laws.

Members of the community want the entire tendering process of their electricity network to SELCo vis-a-vis other bidders to be made public.

They are also demanding an investigation into a conflict of interest that may have resulted from regional political office bearers holding shares in SELCo.

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