Katima walks the salary tightrope

EMPLOYEES of the Katima Mulilo Town Council were paid their January salaries on Friday after going on a drive last week to collect money owed to the Council.

The dire financial position of the council has delayed the payment of workers’ salaries for the second time in as many months. Workers should have been paid on January 23.Finance Manager Liswani Kambinda confirmed on Friday that sufficient funds had been raised to cover the N$246 000 needed to pay a basic wage only.Employees’ insurance, pension and other policies have not been paid since November and many fear that these may lapse.”We are going to lose money we have been paying in for years.I could die tomorrow, and then what happens to my children,” asked union shopsteward, Innocent Mutumba.But Kambinda told The Namibian that there was not enough money to pay workers’ contributions to these funds.The council’s total wage bill is approximately N$400 000.Mutumba said workers were waiting for a Government response to the crisis and a long-term solution to their problems.”This town council will never recover from the money we collect.Our expenses exceed that [debt].The financial capacity of our council is very low,” he said.The town is losing out on one of its main sources of income – fees for water supply – because most prepaid water meters are broken and many residents simply tap water for free.The town has been faced with water cuts by NamWater since last August because it failed to settle arrears said to be standing at N$14 million.Kambinda said that council was still awaiting a response from the Ministry of Regional and Local Government and Housing after requesting a bailout of N$500 000 last week.Deputy Minister Gerhard Totemeyer told The Namibian that financial assistance would not be a long-term solution and said Government planned to intervene in the town’s affairs soon.Workers should have been paid on January 23. Finance Manager Liswani Kambinda confirmed on Friday that sufficient funds had been raised to cover the N$246 000 needed to pay a basic wage only. Employees’ insurance, pension and other policies have not been paid since November and many fear that these may lapse. “We are going to lose money we have been paying in for years. I could die tomorrow, and then what happens to my children,” asked union shopsteward, Innocent Mutumba. But Kambinda told The Namibian that there was not enough money to pay workers’ contributions to these funds. The council’s total wage bill is approximately N$400 000. Mutumba said workers were waiting for a Government response to the crisis and a long-term solution to their problems. “This town council will never recover from the money we collect. Our expenses exceed that [debt]. The financial capacity of our council is very low,” he said. The town is losing out on one of its main sources of income – fees for water supply – because most prepaid water meters are broken and many residents simply tap water for free. The town has been faced with water cuts by NamWater since last August because it failed to settle arrears said to be standing at N$14 million. Kambinda said that council was still awaiting a response from the Ministry of Regional and Local Government and Housing after requesting a bailout of N$500 000 last week. Deputy Minister Gerhard Totemeyer told The Namibian that financial assistance would not be a long-term solution and said Government planned to intervene in the town’s affairs soon.