The Municipality of Otjiwarongo has intensified its debt recovery efforts by disconnecting water services to government and business properties with outstanding accounts.

Otjiwarongo chief executive officer (CEO) Mberipura Hifitikeko yesterday said the mass disconnection campaign started on Monday and targets about 60 businesses and government institutions at the town.

He said individual residential properties are currently exempted from the exercise.

“Our target for now is 60 business and government properties that have owed the municipality more than N$9.5 million for the past two months,” he said.

Hifitikeko said the municipality is unable to publicly identify the affected ministries and businesses due to a confidentiality agreement with them.

He said the municipality has issued several notices and letters of demand to them, but no payment has been made towards settling the outstanding accounts.

“Therefore, the municipality has no choice but to disconnect services to these properties in arrears as a method of recovering the outstanding debts,” he said.

The CEO urged heads of government institutions and parastatals affected by the disconnections to engage the municipality’s debt management office and make arrangements to settle their accounts.

He said some institutions and businesses’ continued failure to honour their monthly obligations has negatively affected the municipality’s cash flow.

Hifitikeko said the municipality would consider payment arrangements where debtors pay at least 50% of the outstanding amount while committing to clear the remaining balance.

The municipality pays NamWater about N$3.5 million per month for bulk water supply to the town.

The CEO further revealed that by the end of May, the municipality was owed more than N$79 million in rates and taxes.

Otjiwarongo currently has 8 968 active municipal accounts, comprising 1 760 account holders in informal settlements and 7 208 in formal residential and business areas.

– Nampa

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