The official in charge of the municipality's pension fund at Alexander Forbes, Loth Angula, yesterday confirmed that the Keetmanshoop Municipality seemed to be battling to pay its employees' pension contributions.

Angula would not divulge how many months' contributions were outstanding.

But another source told The Namibian that no payments had been received for the past five months.

Angula said a letter had been forwarded to the Municipality's Chief Executive Officer, Jeremia Shangadhi, to inform him about the situation.

He said the matter had also been reported to the custodian of Namibian financial services, Namfisa, as well as the line ministry.

Angula did not rule out possible actions against the Town Council, but did not elaborate.

"I wish the Town Council would honour obligations towards their employees," he said.

"We have to get our money."

The Namibian has it on good authority that the Keetmanshoop Municipality's financial situation has deteriorated since it outsourced electricity service delivery to Southern Electricity Company (SELCo).

The municipality is currently embroiled in a legal battle in an attempt to cancel the 15-year electricity deal with SELCo.

A well-placed municipal source has claimed to The Namibian that the institution is "technically bankrupt".

"Someone must intervene now, otherwise the financial chaos the municipality finds itself will mean the downfall of the town," the source said.

According to him, municipal workers' income tax deductions have also not been paid to the Ministry of Finance.

"The institution's account at the local bank is overdrawn and investments upon maturity are absorbed by the huge overdraft.

The overhead cost exceeds income generated by the institution," he said.

The source, who spoke on condition of anonymity, also claimed that the municipality was struggling to pay off millions of dollars in debt it incurred with NamWater.

It was only paying its current water bills, he said.

When approached for comment, a member of the Town Council's Management Committee, Peter Visser, who also serves on the municipality's pension committee, said: "This is an administration matter, therefore I don't want to talk about it."

The municipality's Chief Executive Officer, Jeremia Shangadhi, told The Namibian that he was on leave.

The Mayor, Simon Petrus Tiboth, also refused to shed light on the matter.

Local News Headlines Of The Last 48 Hours

•  City Council takes back B1 City plot
•  Jacobs corruption probe not yet finished
•  Roessing pushing for 2030
•  Lawyer issue delays cop's trial
•  N$400m waterfront project to start soon
•  De-mining in Angola speeds up
•  Community service a viable alternative to prison: Minister
•  Gazza, The Dogg to share stage
•  Parastatal confirms financial squeeze
•  No action against cops in elephant case
•  SA police seize truck, impound cigarettes from Nam
•  SA heavyweights on bench for Teek appeal
•  Govt newspaper tender re-advertised
•  Damara chiefs to discuss differences
•  Murdered woman found at Rehoboth
•  Warden in court over fuel
•  Swakop is IT, says television producer
•  New conservancy launched in Caprivi
•  Rape, murder, robbery mark long weekend
•  Enviro magazine on way
•  By-election date announced
•  Insurers 'bleeding the common man'
•  TransNamib in dire straits