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Grootfontein to write off municipal debt

2022-07-13  Albertina Nakale

Grootfontein to write off municipal debt

The Grootfontein municipality is hard at work clearing N$140 million in debt, which accumulated over 10 years. 

Residents owe the municipality N$140 million – a debt is seen as derailing the council’s efforts in accelerating service delivery due to lack of income. 

Over the years, the municipality has been calling upon residents to settle their municipal bills or face water disconnections as the financially embattled council struggles to provide adequate services.  Grootfontein has been providing free water to impoverished communities; however, this generous gesture has come to haunt its operations. 

In an interview with New Era on Monday, Grootfontein chairperson of the management committee Elizabeth Kastoor confirmed the outstanding debt on rates and taxes, which accrued over a period between 10 to 15 years. As a mitigation measure, she said, once approved by the urban development minister Erastus Uutoni, the council has resolved a dollar-to-dollar system, where it will write off a dollar on every dollar paid.

“Council is also in the process of introducing pre-paid water meters,” she noted.

Kastoor clarified that Grootfontein does not have any NamPower debt, as the municipal council are using Cenored prepaid electricity. Equally, she said, the council does not owe NamWater, as Grootfontein has its boreholes to supply potable water to its residents. Other measures, she mentioned, were highlighted during a recent council strategic plan workshop and it’s still not finalised. 

“Once it’s done, it will be made available to the public.”

Meanwhile, Cenored managed to electrify 20 houses of the Shack Dwellers’ Federation at Grootfontein to the value of N$300 000 during 2021/22. 

– anakale@nepc.com.na


2022-07-13  Albertina Nakale

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