Govt owes City millions for Ramatex

THE development of the huge plot of land for the controversial Malaysian garment and textile factory Ramatex in Windhoek cost nearly N$90 million and Government did not keep its promise to pay half of it, it was revealed at the monthly City Council meeting on Thursday.

RP Councillor Nico Smit wanted to know from Deputy Mayor Elaine Trepper and Chief Executive Niilo Taapopi when Government would pay the outstanding amount of nearly N$24 million. According to Councillor Bjoern von Finckenstein, all communication channels were exploited and the matter was now being discussed at “top level”.Smit had sent a letter to the Windhoek Municipality on October 29, requesting information about the amount owed by that Ministry for the development of the Ramatex plot.In his response, Taapopi on October 30 informed Smit that the Ministry of Trade and Industry had signed an agreement with the municipality to share the development costs for the erf on a 50:50 basis.”The Ministry paid to date N$29,3 million – N$10,3 million shortly after the agreement and N$9,5 million by June 2002 – but is in breach of the agreement which stipulated that the last payment of N$9,5 million should have been paid by JUNE 2003,” Taapopi wrote in his letter.”Numerous attempts to recover the outstanding amount proved futile.The Office of the Mayor as a last resort is currently discussing the matter with the Minister concerned in order for the amount to be recovered.”Taapopi mentioned another sum of N$28,6 million for a second phase of development of the Ramatex plot, of which the costs would have been shared between the City and the Ministry too.”The agreement however was not signed by the Ministry,” Taapopi admitted in his response to Smit.The amount the ministry owes the City of Windhoek comes to N$23,8 million, without any interest added.It was not revealed whether interest would be slapped on that debt.The two development phases cost a total of N$87,2 million.”It was an administrative error that the Ministry did not sign the second cost-sharing agreement,” Von Finckenstein said at the Council meeting.Smit afterwards told The Namibian that he wanted the municipality to add interest to the debt.”It is ratepayers’ money and anyone borrowing money from a bank must pay interest on a loan, so why should the Government be an exception?” Smit said.The official agenda of the City Council meeting was not discussed because UDF Councillor Werner Claassen complained that the councillors did not receive copies of the agenda 72 hours before the meeting.According to Finckenstein, the City lost a court case several years ago because agendas were distributed late and he advised that the meeting should be postponed.This was agreed to and the meeting was postponed to tonight.Ramatex did not adhere to City environmental regulations regarding proper handling of toxic waste from the dying of textiles.It did not construct a proper wastewater treatment plant and the Windhoek ratepayers must now foot the bill, since the municipality will have to construct such a plant.According to Councillor Bjoern von Finckenstein, all communication channels were exploited and the matter was now being discussed at “top level”.Smit had sent a letter to the Windhoek Municipality on October 29, requesting information about the amount owed by that Ministry for the development of the Ramatex plot.In his response, Taapopi on October 30 informed Smit that the Ministry of Trade and Industry had signed an agreement with the municipality to share the development costs for the erf on a 50:50 basis. “The Ministry paid to date N$29,3 million – N$10,3 million shortly after the agreement and N$9,5 million by June 2002 – but is in breach of the agreement which stipulated that the last payment of N$9,5 million should have been paid by JUNE 2003,” Taapopi wrote in his letter.”Numerous attempts to recover the outstanding amount proved futile.The Office of the Mayor as a last resort is currently discussing the matter with the Minister concerned in order for the amount to be recovered.”Taapopi mentioned another sum of N$28,6 million for a second phase of development of the Ramatex plot, of which the costs would have been shared between the City and the Ministry too.”The agreement however was not signed by the Ministry,” Taapopi admitted in his response to Smit.The amount the ministry owes the City of Windhoek comes to N$23,8 million, without any interest added.It was not revealed whether interest would be slapped on that debt.The two development phases cost a total of N$87,2 million.”It was an administrative error that the Ministry did not sign the second cost-sharing agreement,” Von Finckenstein said at the Council meeting.Smit afterwards told The Namibian that he wanted the municipality to add interest to the debt.”It is ratepayers’ money and anyone borrowing money from a bank must pay interest on a loan, so why should the Government be an exception?” Smit said.The official agenda of the City Council meeting was not discussed because UDF Councillor Werner Claassen complained that the councillors did not receive copies of the agenda 72 hours before the meeting.According to Finckenstein, the City lost a court case several years ago because agendas were distributed late and he advised that the meeting should be postponed.This was agreed to and the meeting was postponed to tonight.Ramatex did not adhere to City environmental regulations regarding proper handling of toxic waste from the dying of textiles.It did not construct a proper wastewater treatment plant and the Windhoek ratepayers must now foot the bill, since the municipality will have to construct such a plant.