Usakos unable to settle N$2,3m debt

13 July 2018 | Government

Jessica Botes

The Erongo regional council (ERC) refused two requests by the Usakos town council to write off debt amounting to more than N$2,3 million.

During a recent ordinary monthly regional council meeting, a request was made by the town council for the ERC to consider nullifying the outstanding amount of N$1 854 566 for outstanding levies owed to the ERC. The town council has failed to pay its 5% levy of the total rates levied on all rateable properties in the town to the ERC since April 2009.

In a letter addressed to the acting chief regional officer, Seblonica Kauari, the CEO of the town council, Ivin Lombardt, acknowledged the town council’s failure to pay its levies to the ERC.

“As at this moment, council is certainly not in a position to settle the outstanding amount at once or in the foreseeable future. However, the council wishes to make the following submission for the way forward: For the ERC to consider the nullification of the outstanding amount of N$1 854 566 for the period April 2009 to February 2016 in order to relieve the council from this burden and pressure,” said Lombardt in his letter.

He did state that the town council will pay the outstanding amount for the period from March 2016 to February 2018 as soon as invoices are captured. The ERC recommended that the town council settle the current outstanding amount owed to council for this period.

“The council has taken a decision and promises that henceforth, especially for the current and future financial years, that the 5% levy will be paid duly and on a monthly basis.”

During the meeting, the chairperson of the ERC, Hafeni Ndemula, said that all the debt will not be written off, but that technical assistance will be provided to the struggling local authority.

“By providing assistance to the local authority we are not waiving its legal obligations. The 5% is a budgeted income for the ERC and must be duly paid by all local authorities,” said Ndeluma.

A second request was also made by the town council for the ERC to consider writing off its debt of N$500 000 for financial assistance provided by the ERC to the town council in 2011. The ERC rendered financial assistance towards the town council’s NamWater account.

An agreement was entered into with the town council and a memorandum of understanding was also signed on 4 July 2011. According to the ordinary monthly regional council meeting agenda the terms and conditions of the agreement stipulate that the town council would repay a fixed amount of N$100 000 in five monthly instalments, beginning five months after receipt of payment of their NamWater bill. No payment has however been received to date.

In another letter addressed to Kauari, Lombardt asks that the ERC should seriously consider writing off this debt “in the name of progress”.

“Such action by the regional council will help unshackle the town council from historical debts that only work to slow down our reform and upliftment efforts,” said Lombardt.

Council however recommended that the debt not be written off. Ndeluma also said during the meeting that the submission by the town council should be referred back to the ERC to determine a repayment plan.

“We should look at the town council’s budget again and at their income to determine how they can repay this debt and how we can assist them,” he said.

Similar News


Municipal tariffs to increase with 8 percent overall

1 month - 15 April 2019 | Government

Walvis Bay - Leandrea Louw The chairperson of the management committee of the Walvis Bay council, Lilo Niilenge, has tabled the budget for...

Asbestos removal project under way

1 month - 15 April 2019 | Government

Arandis - Leandrea Louw The Walvis Bay municipal council accepted a proposal by Adcon CC to rehabilitate the hazardous waste site and create more space...

'The Topnaar throne is ours'

1 month - 01 April 2019 | Government

Swakopmund • Leandrea LouwChief Samuel #Khaxab and deputy chief Ephraim Petersen of the #Khaxab Royal House have been involved in a lengthy legal battle to...

Topnaar divided in absence of leader

1 month - 25 March 2019 | Government

Leandrea Louw - The Topnaar traditional council (TTC) called a community meeting to discuss the way forward after the untimely death of their chief, Seth...

Working towards gender equality

2 months ago - 04 March 2019 | Government

Leandrea Louw - A capacity building workshop of women in regional councils under the theme “Enhancing gender equality and women empowerment in Namibia”, concluded on...

Council approves MOU with SDFN

3 months ago - 18 February 2019 | Government

Adolf Kaure - The municipal council has approved a proposed memorandum of understanding (MOU) with the Shack Dwellers Federations of Namibia (SDFN) during its latest...

ERC launches five-year strategic plan

4 months ago - 24 December 2018 | Government

Adolf Kaure -The Erongo regional council (ERC) launched its five-year strategic plan for the period 2017/2018 to 2021/2022 at the Mondesa Multipurpose Centre in Swakopmund...

Nashilundo re-elected as mayor

4 months ago - 24 December 2018 | Government

Adolf Kaure - Paulina Nashilundo was re-elected as the mayor of Swakopmund for 2019. The election of office bearers took place on Tuesday in the...

Solar heating for Municipal Rest Camp

5 months ago - 03 December 2018 | Government

Jessica BotesIn an effort to become more ‘green’ the Swakopmund Town Council has approved the installation of a solar geyser system at the Municipal Rest...

Municipality workers up in arms

5 months ago - 03 December 2018 | Government

Swakopmund municipality workers, who were represented by the Namibia Public Workers Union (NAPWU), held a demonstration on Tuesday expressing their dissatisfaction with their salaries for...

Latest News

Learners benefit from educational tour

2 days ago - 20 May 2019 | Education

Thirty-five grade 7 learners of Narraville Primary School (NPS) toured to South Africa recently. The learners visited various places of interest during the 16-day educational...

New term, new me

2 days ago - 20 May 2019 | Education

Walvis Bay - Karl Philander The second trimester of the year is usually the most important for senior secondary school learners. Here are some useful...

Living with lupus

2 days ago - 20 May 2019 | Health

Walvis Bay - Karl Philander Community members staged a march on World Lupus Day commemorated on Friday 10 May to raise public awareness about...

Tackling hepatitis E

2 days ago - 20 May 2019 | Health

Impacting cross border trade positively...

2 days ago - 20 May 2019 | Ministries

Namibia’s newly formed Revenue Agency (NamRA) aims for faster clearance times for legitimate trade and increased transparency in regulatory processes and decision-making in support of...

Oil storage capacity boosted ...

2 days ago - 20 May 2019 | Infrastructure

Walvis Bay - Leandrea Louw The minister of mines and energy, Tom Alweendo, visited the National Oil Storage Facility in Walvis Bay recently....

Four ROROs heading for Walvis...

2 days ago - 20 May 2019 | Infrastructure

The Port of Walvis Bay will receiving calls from 4 Roll-on/Roll-off (RoRo) ships later this month, the provisional port log indicates.They will discharge over 350...

Grumpy’s fishing report

2 days ago - 20 May 2019 | Fishing

Grumpy Gramowski • Outdoor CentreCatches fluctuated during the past week. Reports received from the ski boat owners and crew members were far from exciting,...


2 days ago - 20 May 2019 | Fishing

Sunday, 19 May High 06:04 Low 12:07 High 18:40 Low 00:40 Monday, 20 May High 07:00 Low ...

Load More