ONGWEDIVA – The Oshakati town council will offer 100% interest relief to residents and businesses for interest accumulated on outstanding account payments.

This proposal was tabled by Oshakati Town Council management committee chairperson Hofeni Mutota during the council meeting last week.

According to the town’s mayor, Leonard Hango, the council debt currently stands at N$85 255 328.32.

“The debts have increased rapidly due to the economic downturn, compounded by the severe effect of Covid-19, where most of the residents lost their sources of income,” he noted.

Hango explained the council shall write off the interest charged on outstanding debts, 100% on all debts for customers who settle their debts within a period of six months as from 1 July 2022, and 60% for those who settle their debts within 12 months.

“The agreement entered must be fully complied with in the duration of the agreement period,” he advised.

The mayor said the waving of interest programme will come into effect on 1 July 2022 but will only apply to residents of Oshakati, except government offices, ministries and agencies, including state-owned enterprises.

The implementation of the policy follows consultations between the council and senior citizens.

“The council recognised that not all residents or business owners are able to meet their monthly payment obligations for municipal services rendered, either fully or partially, due to prevailing economic hardships,” he added.

Furthermore, clients who fail to apply for the incentive programme, to have interest charges waived during the period allocated, will forfeit the benefit when the incentive programme lapses.

- vkaapanda@nepc.com.na