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Home / City to write off N$524m debt 

City to write off N$524m debt 

2023-12-19  Pricilla Mukokobi

City to write off N$524m debt 

Plans by Katutura residents to march up to Parliament and State House on Friday were curtailed when a representative from Parliament received their petition at Zoopark.

 The idea was to demand the elimination of the City of Windhoek’s debt collector, Redforce, while also insisting that the City write off all outstanding debt and introduce pre-paid meters for electricity and water to residents affected by outstanding debt owed to the municipality.

 Bennedus Kandundu, the chairperson of the Katutura Residents’ Committee, expressed confusion about why some State House representatives did not attend but nevertheless stated that Katutura residents are facing significant challenges. 

 He added that since the Katutura people were forcefully relocated from the old location to Katutura in 1959, the houses built for them have never had replacement for sewage pipes, specifically the underground pipes.

 “When these Katutura people were given these houses, they lived in large numbers in one house due to the circumstances before independence. Many City officials lived in those houses,” he explained.

 The petition and recommendations were received by Natanael Nghivafe, the acting deputy director for security and management services at the National Assembly, who said: “Rest assured, the received petition will be delivered to the secretary, and her office will ensure it reaches the respected committee to address your concerns”.

 Nghivafe added that the Katutura people’s concerns are valid, and that the National Assembly would address them.

 In response to demands from Katutura residents, City spokesperson Lydia Amutenya urged the Katutura Residents Committee to seek clarification on the approved debt write-off, rather than spreading false information about the programme, aimed at providing relief to residents.

 She reiterated earlier communication to residents that the City will introduce a N$524 million debt write-off programme with specific terms and conditions.

Notably, the debt write-off covers amounts incurred until 30 November, and subsequent debts must be paid in full to qualify for the programme. 

 The last debt write-off occurred in 2018, totalling N$191 million from the overall debt book of N$677 million. The N$524 million debt to be written off is part of the total debt book projected to reach N$1.6 billion by 2023.

 According to the press statement from the City of Windhoek, pensioners will enjoy a 100% debt write-off on both the capital and interest amounts if they apply for pre-paid water and electricity meters. 

The City said the installation of prepaid services is crucial for ensuring future debt management, preventing the accumulation of debts they cannot pay. 

 It emphasised that the council cannot write off debts indefinitely.

Non-pensioners, including businesses, residential and other debtors, are eligible for a 50% debt cancellation on interest only if they settle the outstanding principal amount within six to 12 months.

 “The primary goal of this programme is to provide support to residents during difficult economic times and adhere to accounting standards, as some debts have become irrecoverable,” said Amutenya. 

On demands for Redforce to be booted, she said the City’s position on Redforce is determined by the contract between the two parties. “The City has a contractual obligation with Redforce, and this commitment stands as long as the contract is in effect.” Sharing similar sentiments as Kandundu, Rebecca Goagoses, a pensioner, informed New Era that the houses in Katutura that were built in the 1950s are deteriorating, yet prices remain unchanged throughout Katutura.

“Most children are unemployed; how will they help us pay the bills? There is a high rate of unemployment in Namibia, and we are really suffering,” she expressed.

 Goagoses further emphasised that pension money is insufficient to cover household expenses, and suggested that the City should consider installing prepaid water and electricity.

 “How do they feel when they see us suffering like this? We are really trying and we are tired of protesting; therefore, we call on the president to come and intervene in this,” she said. 

 Asser Kalume, a business owner in Katutura, narrated that his business closed during Covid-19 – and since then, he has been struggling to make a living.  

 “Ever since my business closed down, I started selling kapana so I can feed my family but the business is not doing well. Now, my debts are just accumulating because I’m unemployed and my business is not doing well,” he said. 

 Kalume added that all they are asking is for the City to provide them with prepaid water and electricity so they can be able to start better businesses.  

Furthermore, if their debts are written off, they will start buying prepaid water and electricity, which will be affordable. 

- priscillamukokobi@gmail.com


2023-12-19  Pricilla Mukokobi

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