Local and regional authorities swim in debt

Local and regional authorities swim in debt

A SERIOUS lack of management capacity has been cited as one of a number of reasons why twenty-two local and regional authorities across Namibia currently owe NamWater a combined N$147 million in outstanding debts for the supply of water.

The Katima Mulilo and Rehoboth Town Councils and the Otjozondjupa Regional Council are the main culprits, respectively owing N$40,8 million, N$23,5 million and N$16 million.Other local and regional authorities include Usakos, Karibib, Khorixas, Rundu, Arandis, Opuwo, Okakarara, Otavi, Bethanie, Berseba, Kalkrand, Koes, Maltahohe, Witvlei, Berseba, Uis, Tses and Gibeon.NamWater public relations officer Tommi-Riva Numbala said that the majority of the debtors have been in the red for more than two years, and that roughly N$38 million has been outstanding since 2004.When asked what the reasons were for the local and regional authorities running up such an enormous debt, Numbala said that the biggest concern was the sources of revenue which are available to the local authorities.He pointed to a ‘serious lack of management capacity in these local authorities, both technical and financial staff’ adding that the problem needs urgent attention from the Ministry of Local Government ‘as most of these local authorities are not able to attract qualified and technical staff’.Numbala also cited an unwillingness to pay for services, saying that some political office bearers encourage residents not to pay their water accounts. Another reason for the sky-high debt is ‘severe dilapidation in the water infrastructure, with little refurbishments done’.According to the NamWater PRO this results in some authorities losing substantial amounts of water in their systems, either through leaking infrastructure, un-billed customers or water stolen from the system.When asked what action NamWater would be taking to recover the outstanding debts, Numbala said that it will be followed up with telephone calls to the relevant local authorities and that the matter would also be taken up with the Ministry of Local Government.He added that NamWater will be looking to enter into repayment agreements with those local and regional authorities that are able to pay.Numbala said that NamWater would disconnect the water supply to local and regional authorities where it believed that revenue generated for water supply is being diverted to pay for other operational costs before paying for water.’It is imperative that the whole cycle on water services continue to turn,’ Numbala said as he added that if local and regional authorities continue to fail to make payments for their water supply ‘NamWater will be unable to settle their suppliers, and the whole country’s water sector will crumble.’Numbala stressed the seriousness of the matter, saying that non-payment for water supply resulted in Namwater not being able to pay its suppliers in 2004/2005.


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