Outjo Residents Owe Municipality Over N$46 Million in Unpaid Bills

Outjo: Outjo residents owe the municipality a staggering N$46 million in unpaid taxes, waste collection fees, and utilities including water and electricity, as reported by the Public Relations Officer of the Outjo Municipality. The accumulation of these debts, dating back over five years and exacerbated by the COVID-19 pandemic, is severely impacting the municipality's ability to carry out its essential services. According to Namibia News Digest, the debts accrued particularly since the onset of the COVID-19 pandemic when the Ministry of Urban and Rural Development issued a mandate in 2020 requiring that all residents have access to water. This directive was part of a relief measure to assist those in informal settlements who were financially impacted by the pandemic. Due to this, municipalities like Outjo have been left with substantial unpaid water bills, further straining their financial stability. Rivonia Roswitha Roman, the Public Relations Officer for the Outjo Municipality, highlighted in an intervie w with Nampa on Tuesday, the dire consequences of these unpaid bills. "These debts are crippling the municipal cash position and ability to fulfil its statutory mandate of service delivery," Roman stated. She further explained that non-payment leads to cash flow challenges that affect the daily operations of the council and hinder payments to service providers like CENORED for electricity and Namcor for fuel. The situation is made more complex by the municipality's ageing fleet of heavy-duty equipment, which requires frequent repairs, adding to the financial strain. Despite these challenges, the municipality's debt to its suppliers, at N$1.6 million, is significantly less than what it is owed. To address this critical issue, the council is enforcing its credit policy more stringently. Roman noted, "The council sends out monthly invoices to the residents, and the finance department is in constant contact with residents and businesses with outstanding accounts." In a bid to encourage payment, the municipality has begun cutting off utilities, such as water, for those in arrears. Moreover, settlement agreements are available, allowing residents and businesses to repay their balances monthly, often through bank debit orders. The council is also willing to waive the interest accrued on overdue accounts to motivate defaulters to settle their debts.