Otavi Council faces being downgraded

GOVERNMENT is considering downgrading the Otavi Municipality to a village council because of its deteriorating financial situation and poor management.

On Friday, Deputy Minister of Regional and Local Government and Housing, Gerhard Toetemeyer, told The Namibian that Government has also discussed a financial bailout to allow the municipality to start afresh. “They have had ample opportunity to prove themselves.It seems they cannot manage and more intervention is needed.It will be a transitional arrangement so things can get running again.We are committed to helping them financially as much as we can,” he said.It is not the first time such a move has been discussed.Two years ago, Government said it would downgrade the council but granted them a reprieve.On Saturday, the Ministry’s Permanent Secretary, Erastus Negonga, met with the town councillors, regional councillors and other community leaders to discuss, among others, the implications of changing the town’s status.Toetemeyer said the decision would ultimately rest with the council and the town’s residents, and that Government did not want to impose the move.Should the municipality be downgraded to village status, Government would play a more direct role in the running of its affairs and the council would receive a State subsidy to run its business.In recent weeks, the town council has been thrown into turmoil with the Otavi Residents’ Association giving three of its four councillors, including the Mayor Markus Damaseb, their marching orders.This was followed by the Town Clerk, Joseph Jantze, tendering his resignation.Last week, Laurentius Ihuhua, Johanna Garas and Martha Mukuwe were sworn in as replacements but have yet to elect a new Mayor, Deputy Mayor and Chairman of the Management Committee.Toetemeyer said it was a matter of urgency that these positions were filled this week so that the council could resume work.On Friday, the council’s 50 workers returned to their posts after Government said it would intervene to see that they were paid their February salaries.Employees downed tools last Monday after council was still unable to pay months of contributions to their medical aid, pension and other insurance.Jantze said after consultations with the staff, they understood the importance of uninterrupted service provision to the community.He would not reveal how much the council was in debt but it is believed that it is using money paid out from a fire insurance claim to keep business afloat.Last May a fire gutted the 40-year old municipal building – a situation which the municipality says led to the large backlog in billing residents for services rendered.The municipality also owes NamWater several hundred thousand dollars for bulk water supply.Negotiations with the water utility have stalled following the sacking of the Mayor, who was key to discussions on making payment arrangements to avoid further water reductions at the town.”They have had ample opportunity to prove themselves.It seems they cannot manage and more intervention is needed.It will be a transitional arrangement so things can get running again.We are committed to helping them financially as much as we can,” he said.It is not the first time such a move has been discussed.Two years ago, Government said it would downgrade the council but granted them a reprieve.On Saturday, the Ministry’s Permanent Secretary, Erastus Negonga, met with the town councillors, regional councillors and other community leaders to discuss, among others, the implications of changing the town’s status.Toetemeyer said the decision would ultimately rest with the council and the town’s residents, and that Government did not want to impose the move.Should the municipality be downgraded to village status, Government would play a more direct role in the running of its affairs and the council would receive a State subsidy to run its business.In recent weeks, the town council has been thrown into turmoil with the Otavi Residents’ Association giving three of its four councillors, including the Mayor Markus Damaseb, their marching orders.This was followed by the Town Clerk, Joseph Jantze, tendering his resignation.Last week, Laurentius Ihuhua, Johanna Garas and Martha Mukuwe were sworn in as replacements but have yet to elect a new Mayor, Deputy Mayor and Chairman of the Management Committee.Toetemeyer said it was a matter of urgency that these positions were filled this week so that the council could resume work.On Friday, the council’s 50 workers returned to their posts after Government said it would intervene to see that they were paid their February salaries.Employees downed tools last Monday after council was still unable to pay months of contributions to their medical aid, pension and other insurance.Jantze said after consultations with the staff, they understood the importance of uninterrupted service provision to the community.He would not reveal how much the council was in debt but it is believed that it is using money paid out from a fire insurance claim to keep business afloat.Last May a fire gutted the 40-year old municipal building – a situation which the municipality says led to the large backlog in billing residents for services rendered.The municipality also owes NamWater several hundred thousand dollars for bulk water supply.Negotiations with the water utility have stalled following the sacking of the Mayor, who was key to discussions on making payment arrangements to avoid further water reductions at the town.