The Namibia Power Corporation has asked the Electricity Control Board (ECB) to intervene in its long-running battle to recover a whopping N$1 billion owed by local state entities and Angola’s power utility for electricity.
NamPower says the debt is of significant concern, because prolonged non-payment could undermine the security of the country’s electricity supply.
In a letter dated 23 April this year to control board chief executive Robert Kahimise, NamPower managing director Simson Haulofu reveals that 14 local authorities have breached repayment arrangements totalling about N$635.3 million.
Haulofu also says the utility has been mandated to create an “early warning system” to report defaulters to the ministries of urban and rural development, industries, mines and energy, and finance.
He says NamPower was submitting the account status of the indebted entities to the ECB, including an update on repayment agreements as of 23 April this year.
“The above-mentioned customers’ overdue debts are of significant concern as NamPower is unable to sustain prolonged non-payment of accounts without negatively impacting the whole country’s security of electricity supply,” Haulofu says.
“It is on this basis that NamPower is bringing this to the Electricity Control Board’s attention for intervention,” he says.
‘WHERE IS THE MONEY GOING?’
Independent Patriots for Change shadow minister of industries, mines and energy Ferdinand Hengombe says NamPower’s debt amounts to a governance crisis.
“I view this situation as a constitutional failure of governance and a betrayal of the social contract between the state and the people of Namibia,” he says.
He says the N$632.4 million owed to NamPower highlights local authorities’ weak financial discipline.
“Local authorities collect money from residents for electricity services. If that money is not reaching NamPower, where is it going?” he asks.
He says the debt raises concerns of “mismanagement, negligence, or even the misuse of public funds”.
Hengombe calls for forensic audits into the defaulting local authorities, the ring-fencing of electricity revenue, and central government intervention where councils have collapsed financially.
“This is not just a debt issue, it is a governance crisis,” he says.
‘THE DEBTORS’
The local authorities in breach listed by the power utility include Mariental, which owes N$265.2 million, Gobabis (N$70 million), Karasburg (N$66.7 million), and Aranos (N$63.9 million).
Other indebted town and village councils are those of Maltahöhe (N$36.6 million), Gibeon (N$25.8 million), Bethanie (N$22.1 million), Keetmanshoop ( N$28.5 million), and Lüderitz (N$18.2 million).
Tses owes N$14.3 million, Leonardville N$13.7 million, Koës N$13.4 million, Kalkrand N$10.8 million, Aroab N$6.8 million, and Stampriet N$4.2 million.
The letter lists the Lüderitz council as one of the local authorities in compliance with repayment arrangements.
NamPower also lists the Rehoboth municipality separately under bulk prepayment arrangements, with outstanding arrears of N$205 million. According to the letter, Rehoboth was placed on the NamPower bulk prepayment system since 1 May 2024.
Under this arrangement, Rehoboth agreed to split future payments, with 10% going towards old debt and 90% towards prepaid electricity purchases.
NamPower says the arrangement would be revisited after six months.
The utility says Rehoboth was later granted an extension until 31 October last year, and has since requested another extension until the debt is paid off.
As of 23 April this year, Rehoboth’s prepayment account had a negative balance of N$5.2 million, which NamPower says is equivalent to 21 days of daily electricity use.
NamPower says Rehoboth has signed an agreement to settle this balance by 31 May.
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