Keetmans misses deadline

THE Keetmanshoop Town Council did not meet a deadline set by the Electricity Control Board (ECB) to reinstate its power supply contract with the Southern Electricity Service Company (SELCo) by noon yesterday.

The Council unilaterally terminated the controversial 15-year exclusive deal with SELCo on Tuesday last week, claiming breach of contract on the part of the South African company. The ECB’s instruction to the Council to rescind its decision is believed to have the backing of Regional and Local Government Minister, John Pandeni.However, Pandeni has indicated that he is unable to attend a meeting called by the Council to discuss the SELCo issue, The Namibian was informed.SELCo secured the contract to maintain and operate the electricity supply of the southern town in 2000 after it bailed out the Municipality with N$5 million to upgrade its power grid.After residents complained that their electricity bills had skyrocketed, the Council tried to renegotiate the agreement.Last week’s move by the Town Council to terminate the contentious contract was made after SELCo withdrew monthly royalties of N$140 000 the council was entitled to in terms of the contract.In the meantime, SELCo has sought a High Court interdict against the Council, which will be heard tomorrow.At a media briefing the Mayor of Keetmanshoop, Simon Petrus Tiboth, said the Town Council decided at an extraordinary meeting to draft a letter to the ECB, requesting an extension of the deadline to the end of this week.Tiboth said the Council needed time to consult its legal representative and all stakeholders.A community group that supports the council in its decision has called for the speedy intervention of President Hifikepunye Pohamba in the SELCo standoff.”This is proof that the council has taken note of the alarming cry of the community in the recent months to do away with this deteriorating company and its affairs,” the group said in a statement.The concerned group claimed that the former local government minister did not give approval to the previous Council to enter into the SELCo agreement.Therefore, it called on the current minister to agree with the termination of the contract, which they regard as illegal.”It has come to our knowledge that the line ministry refuses to assist the council, because of the failure of the previous minister to act accordingly and to stop this dubious contract,” the group said.* In yesterday’s article on SELCo, ‘Keetmanshoop thumbs nose at Govt, SELCo on power deal’, it was reported that the power company makes a profit of N$1,8 million a month.SELCo Managing Director Allen van Zyl has pointed out that it is the company’s turnover that amounts to N$1,8 million a month.The ECB’s instruction to the Council to rescind its decision is believed to have the backing of Regional and Local Government Minister, John Pandeni.However, Pandeni has indicated that he is unable to attend a meeting called by the Council to discuss the SELCo issue, The Namibian was informed.SELCo secured the contract to maintain and operate the electricity supply of the southern town in 2000 after it bailed out the Municipality with N$5 million to upgrade its power grid.After residents complained that their electricity bills had skyrocketed, the Council tried to renegotiate the agreement.Last week’s move by the Town Council to terminate the contentious contract was made after SELCo withdrew monthly royalties of N$140 000 the council was entitled to in terms of the contract.In the meantime, SELCo has sought a High Court interdict against the Council, which will be heard tomorrow.At a media briefing the Mayor of Keetmanshoop, Simon Petrus Tiboth, said the Town Council decided at an extraordinary meeting to draft a letter to the ECB, requesting an extension of the deadline to the end of this week.Tiboth said the Council needed time to consult its legal representative and all stakeholders.A community group that supports the council in its decision has called for the speedy intervention of President Hifikepunye Pohamba in the SELCo standoff.”This is proof that the council has taken note of the alarming cry of the community in the recent months to do away with this deteriorating company and its affairs,” the group said in a statement.The concerned group claimed that the former local government minister did not give approval to the previous Council to enter into the SELCo agreement.Therefore, it called on the current minister to agree with the termination of the contract, which they regard as illegal.”It has come to our knowledge that the line ministry refuses to assist the council, because of the failure of the previous minister to act accordingly and to stop this dubious contract,” the group said.* In yesterday’s article on SELCo, ‘Keetmanshoop thumbs nose at Govt, SELCo on power deal’, it was reported that the power company makes a profit of N$1,8 million a month.SELCo Managing Director Allen van Zyl has pointed out that it is the company’s turnover that amounts to N$1,8 million a month.