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Otjiwarongo approves revenue management policy

2022-09-29  Albertina Nakale

Otjiwarongo approves revenue management policy

Non-adherence to proper revenue management can seriously hamper the cash flow of operations, and it is therefore important to maximise the opportunity in reducing the risk of tying up capital in delinquent accounts.

The Otjiwarongo municipality has recently approved the revenue management policy that applies to all customers within the defined boundaries of the town. 

This policy shall be enshrined in a municipal by-law as per provision of section 30 of the Local Authorities Act, 1992 (Act 23 of 1992), as amended.  

 Otjiwarongo’s strategic executive for community development services Erikson Mwanyekange said the policy will be binding on the public, officials and councillors of this municipality, and that no interference in the process will be permitted. 

As the economic circumstances in the country and the town are volatile, he stated that finance should review the policy annually to adapt measures, procedures and guidelines in order to minimise risk and maximise collection. 

The objective of this policy is to reduce all municipal debts, subject to the principles provided for in this strategy.

Mwanyekange suggests that council must use innovative, cost-effective, efficient and appropriate methods to collect as much of the debt in the shortest possible time without any interference in the process.

 It also aims to provide for a uniform implementation of the revenue management policy and procedures within the boundaries of the Otjiwarongo municipality. 

Another objective is to promote a culture of good payment habits amongst the debtors here, and to instill a sense of responsibility towards the payment of municipal accounts and reducing municipal debt.  Equally, it aims to effectively and efficiently deal with defaulters, in accordance with the terms and conditions of the policy and the Act. 

Therefore, the council promised the policy will be implemented with equity, fairness and consistency. 

“Debts and arrangements to repay debts shall be treated holistically, but different repayment periods or methods may be determined for different types of services and customers. The implementation of this policy should be based on sound business practices,” he says.

Some of the core principles of the policy state that the current account must be paid in full. 

It also highlights that an amount up to N$10 000 should be settled in full. 

Those with a balance of over N$10 000 should apply before the service is reconnected. 

All disconnected debtors must pay 65% of the arrears in full. 

Furthermore, all debtors who are in arrears and apply to make arrangements to reschedule their debt will be subject to certain payment requirements at the time of making the arrangement.

 These include but are not limited to a maximum of a 48 months’ repayment period which should be agreed upon with customers.

2022-09-29  Albertina Nakale

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