Pensioners owe city N$255m

The City of Windhoek’s strategic executive for finance and customer service, Israel Kahiurika, says 20 000 Namibian pensioners have outstanding accounts totalling a cumulative amount of N$255 million with the city.

Abel Isaacks, an accountant at the City of Windhoek, says the city has an excess of 68 000 oustanding accounts, which have caused a backlog in the city’s remuneration system.

He says people who owe the city and have made repayment plans are defaulting on these arrangements.

“People are coming in, making arrangements, and defaulting. Another arrangement, people are defaulting again, and the cycle continues. As a result, the accumulation of debt is inevitable,” he says.

Speaking at a media briefing yesterday, Windhoek deputy mayor Magdalene Lombardt cautioned residents with outstanding accounts who are not pensioners against lobbying the Katutura Residents’ Committee to protest against the city.

The media briefing was in response to a Katutura Residents’ Committee petition against the use of RedForce Debt Management to collect the city’s outstanding debts.

The petition addresses the installation of prepaid meters for water and electricity, the removal of RedForce as a debt collector, the writing off of debts, and the implementation of effective debt management.

“We are concerned about residents who are not pensioners and who use situations like this to petition and rally support while having arrears themselves, and who shy away from their obligations to pay for their consumption,” Lombardt said.

She said no pensioner’s accounts have been handed over to RedForce.

She added there was no interest added to accounts handed over.

Lombardt said the municipality has the mandate to cut off prepaid services such as water and electricity in an effort to collect debts.

She said the city’s contract with RedForce is still standing, since handing over accounts to attorneys is more costly.

According to the deputy mayor, the city charges 20% per annum on debt, while RedForce charges 10% on amounts paid.

Acting Windhoek chief executive Faniel Maanda said the city is not targeting specific groups.

He said when the committee met with councillors on 19 July, they had proposed solutions to the issues with RedForce.

The chairperson of the Katutura Residents’ Committee, Benestus Kandundu, said after their meeting, that the Windhoek City Council requested a two-week period to deliberate on matters.

Maanda said the city is responding as an individual entity.

This comes after the Katutura Residents’ Committee staged a demonstration on 6 September in Windhoek to express their unhappiness about the appointment of RedForce.

In June, Okahandja residents joined Katutura residents for a demonstration at the City of Windhoek’s offices, during which they handed over a petition to Windhoek mayor Joseph Uapingene.

Last week, RedForce chief executive Julius Nyamazana said many local authorities struggle to recover outstanding money and are consequently unable to service the needs of residents.

He said the funds are vital to the operations of local authorities and it is imperative that they are collected.

“Our collection methods are holistic and ethical and are derived from the credit control policies that govern our clients. We maintain that all our engagements with handed over debtors are always above board,” he said.

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