Swakopmund’s N$20m salary controversy

By Kaundjire Humbu

The ministry of urban and rural development has indicated that its minister James Sankwasa did not approve the disputed salary increases at the Swakopmund municipality, following a questionable proposed N$20 million increase in personnel expenditure.

This comes hot on the heels of a petition by concerned Swakopmund residents calling on Sankwasa to investigate the municipal council and consider placing the municipality under administration if it is found to have wilfully disregarded ministerial directives on salary increases and personnel costs.

In a letter dated 16 October 2026, the residents accuse the council of proceeding with salary-related decisions despite conditions imposed by the ministry when it approved the municipality’s 2026/27 budget.

The bone of contention is the implementation of the municipality’s 2024/25 job evaluation and grading results, which the residents claim could add approximately N$20 million to the personnel bill.

The residents allege that the ministry did not approve proposed salary increases of 0.5 percent and 4.5 percent, employee bonuses and a proposed five (5) percent increase in management motor vehicle allowances when it approved the municipality’s budget.

They want the minister to determine whether the council acted within the law by proceeding with the salary-related decisions despite the conditions attached to the budget approval.

The residents also questioned whether the municipality would remain within the ministry’s requirement that personnel expenditure be restricted to 40 percent of total operating costs once the additional expenditure is factored in.

They argue that the situation is particularly concerning because Swakopmund residents and businesses are facing a 5 percent increase in rates and taxes while the municipality is expanding its personnel expenditure.

The dispute has also raised questions about the council’s interpretation of its powers under the Local Authorities Act of 1992.

According to the letter, the council relies on section 27(1)(c)(ii)(bb) of the Act regarding its authority over the conditions of service of municipal employees.

The residents, however, question whether those powers allow the council to make decisions that conflict with conditions imposed by the ministry when approving its budget.

They further cite section 84 of the Act, arguing that municipal funds must be spent in accordance with an approved budget and that certain expenditure not provided for in the budget may require ministerial approval.

The group wants Sankwasa to obtain council resolutions, financial projections and implementation records to establish the full cost of the decisions and determine whether they comply with the approved budget and the law.

While stressing that municipal employees are entitled to fair remuneration, the residents said such adjustments must be lawful, affordable and financially sustainable.

They further urged Sankwasa to consider stronger intervention if an investigation finds that the council wilfully disregarded or persistently failed to comply with lawful ministerial directives.

This includes considering whether the municipality should be placed under administration, with a person appointed to oversee its affairs, if the circumstances meet the legal requirements for such intervention.

The residents are awaiting Sankwasa’s intervention and clarity on whether the disputed expenditure was properly authorised and budgeted for.

Speaking to Confidente, Erongo Governor Nathalia /Goagoses said she had contacted the ministry’s executive director, Wilhelmine Shivute, to establish whether Sankwasa had approved the disputed salary increases at the Swakopmund municipality.

/Goagoses explained that Shivute said she could not find evidence that the minister had approved the increases and was also unaware of any attempts by the municipality to increase salaries.

“She does not see any evidence where the minister is approved for the salary increases. And she’s also not aware that the municipality is making attempts to increase the salaries,” /Goagoses said, recounting her conversation with the Shivute.

She said Shivute had explained that local authorities might consult the minister on such matters without necessarily seeking formal approval, although the legal position remained unclear.

/Goagoses added that the executive director had indicated that the municipality’s budget was forwarded after consultations with the Erongo Regional Council.

“She said the budget was forwarded after they have consulted with the Erongo Regional Council.”

/Goagoses said the municipality’s chief executive officer and mayor should also be approached to clarify the circumstances surrounding the proposed N$20 million increase in personnel expenditure.

According to the governor, the inquiries should establish whether the amount had been budgeted for, whether the Erongo Regional Council had approved it and whether the ministry had authorised the expenditure.

She said Shivute had encouraged union representatives to seek clarification directly from the municipality’s leadership.

“Journalists have got the right to now do the inquiries from the institution itself, from the municipality chief executive officer (CEO) and from the municipality’s mayor, just to establish the facts as to what is happening,” /Goagoses quoted the Shivute.

Swakopmund mayor Suamma Kautondokwa referred all queries to the council spokesperson Linda Mupupa who did not respond to questions at the time of going to print.

Efforts to obtain further comments from Sankwasa, the chairperson of the management committee Angula Shivute and the town’s CEO Alfeus Benjamin and were also unsuccessful.

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