Debt desperation at Karibib, Usakos

USAKOS residents are bracing for a possible power cut today, despite the municipality having pulled out all stops in recent days to collect enough money to settle their account with NamPower.

They need to pay the power utility N$260 000, but at a public meeting called by the council last night, residents heard that not enough money had been collected. On Monday night, residents and business people decided to take matters into their own hands to avert a power cut.They proposed that consumers should pay NamPower directly and no longer rely on the municipality to make the payments.It was suggested that a bank account be opened in NamPower’s name and that all money owing for electricity be deposited directly into the account.An ad hoc committee, consisting mainly of business people, was established at the weekend and entered into negotiations with NamPower on the matter.But the proposal has yet to get the approval of the town council which met yesterday to discuss the matter.Some councillors feel that the arrangement could affect the operations of the council, and would also contravene the Local Authorities Act.Cobus Potgieter, who heads the residents’ committee, said yesterday the action had been taken out of desperation because businesses would suffer tremendously if the power supply was cut.”The municipality is an agent to collect money but this is not being realised.We don’t know where the money is going,” Potgieter said.Chairperson of the Management Committee Daniel Stramiss said although he personally agreed with the proposal, the council also had to consider how the arrangement would affect the agreement the council has with NamPower to pay their arrears.”How can I sit back as a councillor and watch the town being cut off if there is a way out?” said Stramiss.Stramiss said council had to listen to the will of the people on the matter.”We as the municipality are suffering.This is the truth,” he said, “we have to take a decision that will affect everybody positively.”The matter is scheduled to be discussed again at this afternoon’s monthly council meeting.Earlier this week, Stramiss said although the new council had inherited a legacy of debt and mismanagement, it was committed to paying its debtors with the little it had.Potgieter said the committee was awaiting a visit from a NamPower official tomorrow to discuss the finer details of the proposed plan.A similar proposal was set to be put to Karibib residents at a community meeting last night and residents were planning to establish their own committee to also deal directly with NamPower.They have been granted a reprieve until next week or they will face a power outage for outstanding debts of about N$1,6 million.At Monday night’s meeting, Usakos residents called for a forensic audit of the town’s books to gain a more accurate picture of what the town owes its bulk utility suppliers.The town treasurer told the meeting that NamPower was owed in the region of N$900 000 and NamWater another N$740 000.Neither of the two companies have been paid since April.On Monday night, residents and business people decided to take matters into their own hands to avert a power cut.They proposed that consumers should pay NamPower directly and no longer rely on the municipality to make the payments.It was suggested that a bank account be opened in NamPower’s name and that all money owing for electricity be deposited directly into the account.An ad hoc committee, consisting mainly of business people, was established at the weekend and entered into negotiations with NamPower on the matter.But the proposal has yet to get the approval of the town council which met yesterday to discuss the matter.Some councillors feel that the arrangement could affect the operations of the council, and would also contravene the Local Authorities Act.Cobus Potgieter, who heads the residents’ committee, said yesterday the action had been taken out of desperation because businesses would suffer tremendously if the power supply was cut.”The municipality is an agent to collect money but this is not being realised.We don’t know where the money is going,” Potgieter said.Chairperson of the Management Committee Daniel Stramiss said although he personally agreed with the proposal, the council also had to consider how the arrangement would affect the agreement the council has with NamPower to pay their arrears.”How can I sit back as a councillor and watch the town being cut off if there is a way out?” said Stramiss.Stramiss said council had to listen to the will of the people on the matter.”We as the municipality are suffering.This is the truth,” he said, “we have to take a decision that will affect everybody positively.”The matter is scheduled to be discussed again at this afternoon’s monthly council meeting.Earlier this week, Stramiss said although the new council had inherited a legacy of debt and mismanagement, it was committed to paying its debtors with the little it had.Potgieter said the committee was awaiting a visit from a NamPower official tomorrow to discuss the finer details of the proposed plan.A similar proposal was set to be put to Karibib residents at a community meeting last night and residents were planning to establish their own committee to also deal directly with NamPower.They have been granted a reprieve until next week or they will face a power outage for outstanding debts of about N$1,6 million.At Monday night’s meeting, Usakos residents called for a forensic audit of the town’s books to gain a more accurate picture of what the town owes its bulk utility suppliers.The town treasurer told the meeting that NamPower was owed in the region of N$900 000 and NamWater another N$740 000.Neither of the two companies have been paid since April.