By Rochelle Neidel
TSUMEB – Tsumeb municipality has decided to write off 50 percent of the household municipal debts, in a bid to encourage residents to pay off their mounting debts.
Tsumeb residents owe the municipality N$94 million in water and energy utilities tariffs as well as other municipal services.
Under the new arrangement, residents are expected to pay arrears that are more than 120 days and thereafter council would write-off debt equivalent to the arrears paid off.
“The dollar-to-dollar initiative is basically an effort by council to encourage people to pay their debt. This move is aimed at reducing debt. We understand the challenges that residents may face so we [are] basically trying to reach out to the residents,” Stella Imalwa, Tsumeb’s public relations officer said, adding that the initiative would start on June 30 this year.
The incentive is not applicable to loan holders, those owning vacant erven, business owners, those with temporary connections and those that have made requests for property sales and clearance.
“The incentive is only applicable to those owning residential properties and if a resident intends to sell the property in the timeframe that the initiative is running, it will forfeit all written-off debt and the amount will be due to the owner,” she said.
Imalwa also explained that the initiative was aimed at encouraging those especially residing in municipal houses as tenants to register for the initiative so that the town council can alienate the houses once debt is written off completely.
Late last year the town council confirmed its plans to make more residential land available as the town was growing due to increased mining activity in the surrounding areas that have created jobs for many outsiders. De-bushing of plots earmarked for future residential developments has commenced.