Keetmanshoop Council ‘technically bankrupt’

THE Keetmanshoop Municipality is “technically bankrupt”, says a reliable source within the municipality.

According the source, who spoke on condition of anonymity, municipal workers’ pension contributions had not been paid over to Alexander Forbes Investment Company for five months. “The institution had been served with summons letters threatening to suspend the pension scheme if payments are not done before the end of January,” the source said.In addition, income taxes and insurance contributions are not paid over, he said.”On different occasions families of a municipal official that has passed away, found out that the deceased’s insurance had lapsed,” he said.The source said if the current state of financial affairs at the municipality was not revealed in time, it would mean the downfall of the town.The source added that funds intended for capital projects had been used to cover the municipality’s overheads.For instance, sums of N$410 000 and N$1.3 million meant for the Build Together housing scheme were used to cover the municipality’s day-to-day expenses.”The current expenses totally exceed the income generated by the institution,” he said.The source charged that the cash-strapped municipality is battling to settle water debts amounting to millions that it owes NamWater.”The municipality managed to pay an average N$700 000 for the current pre-paid water bill,” the source said.Recently, the municipality had to cough up penalty fees of N$17 000 for the late renewal of its vehicle registrations, he said, adding that cash-flow problems had prevented it from renewing the licences on time.Attempts to get comment from the town’s Chief Executive Officer, Jeremia Shangadhi, proved futile, including calls to his house and office.Apparently the CEO is on leave.”The institution had been served with summons letters threatening to suspend the pension scheme if payments are not done before the end of January,” the source said.In addition, income taxes and insurance contributions are not paid over, he said.”On different occasions families of a municipal official that has passed away, found out that the deceased’s insurance had lapsed,” he said.The source said if the current state of financial affairs at the municipality was not revealed in time, it would mean the downfall of the town.The source added that funds intended for capital projects had been used to cover the municipality’s overheads.For instance, sums of N$410 000 and N$1.3 million meant for the Build Together housing scheme were used to cover the municipality’s day-to-day expenses.”The current expenses totally exceed the income generated by the institution,” he said.The source charged that the cash-strapped municipality is battling to settle water debts amounting to millions that it owes NamWater.”The municipality managed to pay an average N$700 000 for the current pre-paid water bill,” the source said.Recently, the municipality had to cough up penalty fees of N$17 000 for the late renewal of its vehicle registrations, he said, adding that cash-flow problems had prevented it from renewing the licences on time.Attempts to get comment from the town’s Chief Executive Officer, Jeremia Shangadhi, proved futile, including calls to his house and office.Apparently the CEO is on leave.