25 Jul 2013 06:10
WINDHOEK, 25 JUL (NAMPA) - The City of Windhoek (CoW)s debt-book currently stands at N.dollars 390 million, an amount which has accumulated over the past five to 10 years.
The CoW's Manager for Corporate Communications, Tourism, Marketing and Customer Care, Joshua Amukugo said during a media briefing held here on Wednesday afternoon that the non-payment of municipal services poses a serious threat to the financial health of the Windhoek Municipality.
The City of Windhoek relies on its own revenue, which is composed mainly of property rate taxes and charges for providing water, electricity, refuse removal, sanitation and other services, he explained.
Amukugo said there has been an outcry from the public about the steps taken by the municipality to ensure that debt is paid on time, and that municipal debts are prioritised.
In applying its debt management policy, it has been strangely noted that debtors are willing to stay without water, as opposed to electricity. If the services for water are discontinued due to prolonged periods of non-payment by debtors, nothing changes! he stressed, adding that debtors just continue with their habit of the non-payment of municipal debts.
Amukugo, however, stated that once such debtors electricity is disconnected, they either come in to make arrangements to pay off the debt, or settle their accounts in full, hence the Citys decision to block pre-paid meters.
He said the Windhoek Municipality does not receive subsidies from Government, and only benefits from the Targeted Intervention Programme for Employment and Economic Growth (TIPEEG), which is only aimed at specific projects.
The City of Windhoek announced in May this year that it will spend over N.dollars 200 million for the servicing of land in Otjomuise Extension 4, Otjomuise Extension 10 and Academia Extension One under TIPEEG.