Kuzeeko Tjitemisa
Residents of Rehoboth have questioned the signing of a US$6.5 million letter of guarantee, by the town’s deputy mayor for a private company.
Leilani Uiras allegedly signed a letter that states, “We as RTC are standing in as guarantor for Jacquin Consulting Agency and Developments for the amount of US$6.5 million” on a town council letterhead.
“We give guarantor to any company/business that will assist Jacquin Consulting Agency and Developments with the above mention amount that should they Jacquin Consulting Agency and Developments fail to refund or pay back the full amount plus interest to such company/business, We as RTC will take full responsibility and repay the full amount plus interest to such company,” further reads the letter signed by the Landless People’s Movement councillor.
Residents were outraged yesterday on social media questioning the wisdom of the decision while the town swims in debt.
Others wrote the letter off as a hoax.
The town has been caught in a continuous cycle of debt owing both NamPower and NamWater over N$100 million while failing to collect sufficient amounts from residents and local businesses.
A signature, purported to be for Uiras appears on a US$6.5 million guarantee letter for Jacquin Consulting Agency and Developments owned by a certain Stanford Lucas that will see the agency developing and servicing 760 residential erven, 24 general residential erven, two business erven and two institutional erven on a total area of 71.7 hectares.
Uiras’ phone went unanswered yesterday. She did also not respond to a WhatsApp message sent to her.
However, a statement yesterday from the office of the town’s CEO, said, “the council wishes to make it clear that the issuing of such a guarantee has never been approved at any of its council meetings. Therefore, such guarantee could not have been issued from council, more specifically the office of the mayor as the letter states.”
The council warned financial institutions not to accept the letter as it is “devoid of any truth”.
“The information is false and the Rehoboth Town Council distances itself from any liability, financial support or any support as a result of this letter,” said the council.
Mayor Enrico Junius yesterday said a meeting was convened to discuss the issue.
“I can’t say much, I am also in the dark. We set up a meeting tomorrow (today) on the matter and a press statement will be issued later this afternoon,” said Junius who represent Rehoboth Independent Town Management Association (RITMA) on the council.
Caption (Rehoboth) In the dark… Rehoboth residents have questioned the over N$99 million guarantee signed by the council’s deputy mayor for a business.
Photo: Nampa