Pricillla Mukokobi
Imelda Munika
The City of Windhoek’s decision to cut off water and electricity to defaulting homes has left residents of Katutura Central with no choice but to petition President Hage Geingob.
The residents have been without electricity for over six months, which has forced them to close down their businesses, leaving them without any source of income.
In the petition to be handed over to the head of State, the residents demand the City of Windhoek write off their debts, eliminate consumption estimates, introduce pre-paid electricity and water meter systems, and get rid RedForce as the debt collector.
At a meeting held on Tuesday in Katutura’s Single Quarters, Benestus Kandundu, the chairperson of the Katutura Residents Committee, expressed his frustration with the City’s actions.
He said the decisions were incomprehensible, particularly in light of the financial constraints brought about by the Covid-19 pandemic.
While citing the City’s financial difficulties, Kandundu said the City has overlooked the challenges faced by the residents.
“The pandemic has affected everyone, and the residents of Katutura, like many others, find themselves in dire straits. The decision to petition the President reflects our determination to have our voices heard and our concerns addressed,” said Kandundu.
He said the City must write off the debts because the residents are unemployed.
The residents claim to have handed over their petition to the Ministry of Urban and Rural Development and the City of Windhoek but their cries fell on deaf ears.
One of the affected residents, Angelika Kutamundu (98) who lives with 22 of her family members, said the pension grant is not enough to sustain her and the family and the debt that they owe to the City.
“We go to their offices to pay the little that we have but they send us back demanding that we must pay more. There is no way we can get 80% of the money we owe,” she said.
Magdalena Shikongo, one of the business owners said when her water and electricity was cut off, her bar business had to shut down because most of the goods needed electricity.
She, however, resorted to selling kapana to make ends meet and take care of 16 family members.
“There is no money in selling kapana, sometimes a day passes without selling anything and there are a lot of people that are doing the same business,” said Shikongo.
In a communique, Urban and Rural Development Minister Erastus Uutoni said he had forwarded their petition to the Windhoek Municipal Council, through the mayor, for the council to promptly look into the issues that they have raised.
Furthermore, engage the group representatives committee and provide timely feedback on their grievances.
“I have taken note of your demand for a response within 72 hours. I wish for your continued patience and understanding and allow the municipal council reasonable time to effectively look into your issues and also engage in a two-way dialogue,” said Uutoni.
On 12 September, the City held a press conference where it informed the public that it was in the process of formulating a proposal to write off debt for about 20 000 pensioners, who owe close to N$225 million.
The proposed write-off is expected to include interest owed by all residents.
Deputy Mayor Magdalena Lombard warned that this process must be executed cautiously to ensure long-term sustainability.
The municipality has lately been fighting tooth and nail to get its books in order, and defiant residents are not making it any easier.
As of May, the City was owed a staggering N$1.2 billion.
Despite numerous challenges, it is actively pursuing assisting its residents, even though debts are becoming unsustainable.
This, City officials said, is making it difficult for the municipality to deliver uninterrupted municipal services to clients and customers.
They are actively considering various debt management modalities and are bound by legal mandates. Therefore, they cannot freeze interest on arrears.
However, for pensioners’ payment arrangements, a principal decision was taken to charge only a 15% down-payment, instead of the 33.33% as per the City’s Credit Control Policy.
This figure led the municipality to start disconnecting its services for accounts in arrears for 30 days and older.
Many homes, especially in Katutura, went dark between June and July 2023, an action that did not sit well with residents.
The deputy mayor added that the City has the mandate to suspend prepaid services to recover outstanding debts for various services rendered.
It is important to note that the electricity prepaid installations have always been free for pensioners. However, the only requirement is that the pensioners apply for the installation of prepaid electricity meters.
“As for the prepaid water meters, there are currently payment options available to pensioners and general residents, which are upfront payments or payment of repayment of the prepaid meter installation cost over a maximum period of five years, deducted through the purchase of the unit at an interest rate of 11%,” said Lombard.
On the matter of residents demanding that the City ends its agreement with RedForce, Lombard said the City charges 20% per annum on arrears, while RedForce charges 10% on amounts paid.
Prior to the appointment of RedForce, clients’ accounts were handed over to attorneys for further debt collection.