Residents, institutions and businesses owe the Ondangwa Town Council a cumulative N$85 million.
Disclosing the figures, the town’s spokesperson Petrina Shitalangaho-Mutikisha said the council’s debts increased significantly due to the economic downturn, worsened by Covid-19 pandemic, which brought most businesses to their knees.
“Some of the residents had lost their income and employment, limiting their purchasing power and ability to pay their municipal services in full.
“In addition, the global economic slump has severely affected the economic development activities resulting in the closure of some local business establishments,” she said.
According to her, the situation resulted in the council constantly receiving requests from account holders or consumers, in particular who are in arrears to have their interests rate and debts waived.
“Ondangwa Town Council during the ordinary council meeting on 27 July 2023, passed a resolution to waive full interests on all accounts with debts for consumers who can settle their debts within a period of 12 months from October 2023 to September 2024,” she stated.
“This is not the first time council is bringing a relief programme to its residents. In the 2021-22 financial year, during the sixth ordinary council meeting in 2021, for a period of 12 months, council exempted people in informal areas from paying connection fees for sewer and water,” she said, adding that the waiver presents those who were hard hit by the pandemic an opportunity to settle their outstanding accounts.
Shitalangaho-Mutikisha further said the council has enlisted the services of debt-management firm, Redforce to help collect what is due to it.
– vkaapanda@nepc.com.na