WINDHOEK – The Ministry of Urban and Rural Development (MURD) has justified its approval of a N$26 million debt write-off for the Rehoboth Town Council’s alienation scheme, describing it as part of efforts to resolve ongoing issues related to the scheme.

The town council recently revealed this write-off for outstanding debts tied to 609 houses and erven in Block E, which are part of the town’s broader alienation scheme.

The ministry’s executive director Nghidinua Daniel stated in an interview with Nampa on Wednesday that the government, through the then-Ministry of Local Government and Housing, implemented the Housing Alienation Scheme, especially for local authorities.

“The scheme applied to lessees who on 13 July 1991 leased the old municipal houses for seven years or longer; and the existing purchaser who bought their properties before 31 July 1991 and who had municipal housing loans, to redeem the purchase price,” he said.

Referencing Cabinet Decision No.16*/17.09.24/011 on the alienation and transfer of ownership of properties under the Old Kaptein Hans Diergaardt Raad in Rehoboth, Daniel said Cabinet approved the transfer and donation of Block E brickhouses and erven within informal structures (shacks), and older Kaptein Hans Diergaardt houses allocated under the government’s Alienation Scheme.

He added that Cabinet also directed the Minister of Urban and Rural Development and the Minister of Finance and Public Enterprises to consider the writing-off of the debts owed in respect of properties under alienation.

In addition, Daniel noted that in order to prevent utility debt, the MURD has been advising local authorities and regional councils to reinforce their credit and debt management policies in accordance with the gazetted regulations.

“On behalf of the local authorities, the ministry occasionally urges ministries, offices and agencies that owe money to local authorities to pay their debts so that the local authorities can pay NamPower and NamWater,” he stated.

Recently, Government allocated N$250 million for the 2024/25 financial year for local authorities to acquire pre-paid water and electricity meters to strengthen the collection of rates and taxes All houses will have pre-paid water and electricity meters, he noted.

The Rehoboth Town Council owes NamWater N$14 million, and NamPower N$190 million. 

– Nampa