Keetmans in dire straits

THE debt-ridden Keetmanshoop Town Council has been forced to negotiate reduced debt payments to NamWater to avert a looming water cut-off, The Namibian has established.

According to a well-placed source, the Council was warned two weeks ago that its water supply would be cut for failing to pay an instalment of N$220 000. The council owes NamWater close to N$3,2 million.It negotiated for a N$100 000 debt payment to ease its financial burden, The Namibian was informed.In addition to the outstanding debt, the town is now paying between N$800 000 and N$900 000 a month in advance for its water, after NamWater threatened to cut the water supply in July 2005 because of a N$5,1 million debt.The Council’s exorbitant monthly payroll of about N$800 000 contributed to the financial fix it finds itself in, the source added.The Namibian has it on good authority that the Council has a monthly income of close to N$2 million for municipal services rendered to residents.”To be honest, the Council is technically bankrupt,” the source said.When approached for comment yesterday, Mayor Finna Elago conceded that the Council could not afford to repay its NamWater debt.She also acknowledged that Council had successfully negotiated a reduced monthly payment of N$100 000.However, she denied that NamWater had threatened to cut the town’s water supply because of non-payment.”In September or August, Council failed pay the full instalment of N$220 000 as agreed between the parties, but repayments were made on the outstanding arrears and the prepaid water bill is paid up,” she said.Elago expressed disquiet over the Council’s salary expenses and said plans were afoot to reduce the payroll.But she could not be drawn into saying whether these plans would entail job losses.”Council at one stage forked out N$1 million on staff salaries, but currently it’s between N$700 000 and N$800 000,” she said.In 2004, Council enlisted a debt-collecting agency’s services to recover outstanding bills of close to N$1 million from residents.The council owes NamWater close to N$3,2 million.It negotiated for a N$100 000 debt payment to ease its financial burden, The Namibian was informed.In addition to the outstanding debt, the town is now paying between N$800 000 and N$900 000 a month in advance for its water, after NamWater threatened to cut the water supply in July 2005 because of a N$5,1 million debt.The Council’s exorbitant monthly payroll of about N$800 000 contributed to the financial fix it finds itself in, the source added. The Namibian has it on good authority that the Council has a monthly income of close to N$2 million for municipal services rendered to residents.”To be honest, the Council is technically bankrupt,” the source said.When approached for comment yesterday, Mayor Finna Elago conceded that the Council could not afford to repay its NamWater debt.She also acknowledged that Council had successfully negotiated a reduced monthly payment of N$100 000.However, she denied that NamWater had threatened to cut the town’s water supply because of non-payment.”In September or August, Council failed pay the full instalment of N$220 000 as agreed between the parties, but repayments were made on the outstanding arrears and the prepaid water bill is paid up,” she said.Elago expressed disquiet over the Council’s salary expenses and said plans were afoot to reduce the payroll.But she could not be drawn into saying whether these plans would entail job losses.”Council at one stage forked out N$1 million on staff salaries, but currently it’s between N$700 000 and N$800 000,” she said.In 2004, Council enlisted a debt-collecting agency’s services to recover outstanding bills of close to N$1 million from residents.