Govt withdraws Katima council lifeline

GOVERNMENT has decided to withdraw its assistance to the Katima Mulilo Town Council, satisfied that the town’s financial position has improved.

“The Katima Mulilo Town Council is now back on track with a sound financial position to sustain its operations and service delivery to the community,” Local Government Permanent Secretary Erastus Negonga told the town on Friday. The Ministry of Regional and Local Government and Housing sent a team to the town two months ago when months of financial turmoil and bad management reached an all-time low and residents had to make do without water.The team was asked to oversee administrative matters and help bring the town’s finances under control.Since then, the council’s monthly revenue has doubled from N$500 000 to a million dollars.”We do not anticipate any further financial distress, provided that the community participate and co-operate fully in the planning and implementation of services in Katima Mulilo,” said Negonga.Government is currently managing the N$14 million the council owes to Namwater.The council’s bulk water account has been reduced from N$500 000 in July to N$300 000 last month.In terms of an agreement with NamWater, the council now has to pay in advance for its bulk water supply.All other creditors have been paid.Negonga said underground leakages and illegal connections had led to huge water losses and the bankruptcy of the council.Land management remains a major problem.More than 60 per cent of land sold remains unregistered and much of the property is illegally occupied.In addition, the council has not generated any funds through rates and taxes.The Ministry intends to keep assisting the council in this respect to help boost revenue.The Ministry of Regional and Local Government and Housing sent a team to the town two months ago when months of financial turmoil and bad management reached an all-time low and residents had to make do without water.The team was asked to oversee administrative matters and help bring the town’s finances under control.Since then, the council’s monthly revenue has doubled from N$500 000 to a million dollars.”We do not anticipate any further financial distress, provided that the community participate and co-operate fully in the planning and implementation of services in Katima Mulilo,” said Negonga.Government is currently managing the N$14 million the council owes to Namwater.The council’s bulk water account has been reduced from N$500 000 in July to N$300 000 last month.In terms of an agreement with NamWater, the council now has to pay in advance for its bulk water supply.All other creditors have been paid.Negonga said underground leakages and illegal connections had led to huge water losses and the bankruptcy of the council.Land management remains a major problem.More than 60 per cent of land sold remains unregistered and much of the property is illegally occupied.In addition, the council has not generated any funds through rates and taxes.The Ministry intends to keep assisting the council in this respect to help boost revenue.