Cabinet to decide on Katima bailout

THE dire financial crisis of the Katima Mulilo Town Council is set to be handled by Cabinet soon.

The Ministry of Regional and Local Government and Housing yesterday described the financial situation of the Town Council as “very critical and traumatic”. Minister Joel Kaapanda said a rescue package would have to be discussed at Central Government level, as it was beyond his Ministry’s financial capacity to salvage.Over the years, the Katima Mulilo Council has been plagued by its inability to recover debts, pay for bulk water supply and its personnel.The situation has plunged the local authority into the red by millions of dollars – particularly to NamWater, leaving residents to cope with a supply of only six hours a day.In-fighting among councillors and administrative staff has also hindered the smooth running of the town’s affairs.Addressing the media on an induction programme set to start next week to train newly elected councillors in sound financial management, Kaapanda said the affairs of Katima Mulilo had become a “national liability”.Kaapanda added that a rescue plan was already under discussion in the Ministry of Finance and the National Planning Commission.He did not disclose what amount was being considered.The Katima Mulilo, Rundu and Grootfontein town councillors are scheduled to undergo training at Rundu from June 14-16.Despite the turmoil at the town in recent years, residents still chose to keep Swapo in power and Michael Mudabeti was once again re-elected as Mayor.Minister Joel Kaapanda said a rescue package would have to be discussed at Central Government level, as it was beyond his Ministry’s financial capacity to salvage.Over the years, the Katima Mulilo Council has been plagued by its inability to recover debts, pay for bulk water supply and its personnel.The situation has plunged the local authority into the red by millions of dollars – particularly to NamWater, leaving residents to cope with a supply of only six hours a day.In-fighting among councillors and administrative staff has also hindered the smooth running of the town’s affairs.Addressing the media on an induction programme set to start next week to train newly elected councillors in sound financial management, Kaapanda said the affairs of Katima Mulilo had become a “national liability”.Kaapanda added that a rescue plan was already under discussion in the Ministry of Finance and the National Planning Commission.He did not disclose what amount was being considered.The Katima Mulilo, Rundu and Grootfontein town councillors are scheduled to undergo training at Rundu from June 14-16.Despite the turmoil at the town in recent years, residents still chose to keep Swapo in power and Michael Mudabeti was once again re-elected as Mayor.