Karibib addresses debt trap

THE Karibib Town Council has taken a key administrative decision in an attempt to better manage its debts to bulk utility suppliers.

In response to an appeal made by the community at a meeting on Tuesday night, the town council agreed yesterday that a separate bank account would be opened by the municipality into which it would deposit all monies received in respect of payment for electricity supply. Karibib Mayor Frans !Aoxamub said yesterday that at present the municipality had no control over how much money it was receiving for the sale of water and electricity respectively.He said the establishment of the municipal electricity account would assist in this regard.The municipality intends to give NamPower access to its electricity account, so it could gauge what the council had collected in respect of electricity sales.The decision differs slightly from what the community had intended, which was for them to pay NamPower directly through a special account opened for this purpose.But !Aoxamub has said that the problem of non-payment for services remained the council’s biggest obstacle to settling its debts.He said unless people paid their dues the town would continue to find itself in a pickle to pay NamPower and NamWater.The Namibian understands that NamPower officials are scheduled to meet with both the Karibib and Usakos Town Councils to discuss their accounts.Usakos were saved from a power cut yesterday for their failure to settle their debts.Businessman Cobus Potgieter, who works in both towns, said yesterday that the business community were very thankful to NamPower from having spared them such drastic action to date.The Namibian understands that the council put another proposal to NamPower yesterday to settle its debts which the council said on Monday were in the region of N$1 million.Karibib Mayor Frans !Aoxamub said yesterday that at present the municipality had no control over how much money it was receiving for the sale of water and electricity respectively.He said the establishment of the municipal electricity account would assist in this regard.The municipality intends to give NamPower access to its electricity account, so it could gauge what the council had collected in respect of electricity sales.The decision differs slightly from what the community had intended, which was for them to pay NamPower directly through a special account opened for this purpose.But !Aoxamub has said that the problem of non-payment for services remained the council’s biggest obstacle to settling its debts.He said unless people paid their dues the town would continue to find itself in a pickle to pay NamPower and NamWater.The Namibian understands that NamPower officials are scheduled to meet with both the Karibib and Usakos Town Councils to discuss their accounts.Usakos were saved from a power cut yesterday for their failure to settle their debts.Businessman Cobus Potgieter, who works in both towns, said yesterday that the business community were very thankful to NamPower from having spared them such drastic action to date.The Namibian understands that the council put another proposal to NamPower yesterday to settle its debts which the council said on Monday were in the region of N$1 million.