CoW explains debt relief
The City of Windhoek (CoW) has responded to statements made by Benestus Kandundu, a former councillor and chairperson of the Katutura Residents Committee, regarding the recently approved debt relief programme.“Contrary to Mr Kandundu's claims, the City of Windhoek has been diligently working on a debt relief plan for over a year, even before the Katutura Residents Committee approached the City with their request,” the City said in a media statement.
“The Windhoek Municipal Council officially approved the N$524 million debt write-off programme at its meeting on 30th November 2023 with specific terms and conditions. One of them is that the debt write-off only covers debts incurred until 30 November 2023, and any subsequent debts must be paid in full to qualify for the programme,” the City said.
According to the City, pensioners receive a 100% debt write-off on both the capital and interest amounts if they have or applied for pre-paid water and electricity meters. The condition of installing prepaid services is important to ensure future debt management preventing the accumulation of debts they cannot pay. The Council cannot write off debts indefinitely.
Furthermore, non-pensioners (businesses, residential and other debtors) will get a 50% debt cancellation on interest only, if they pay the outstanding principal amount within 6 to 12 months.
“This programme's primary goal is to support residents during difficult economic times and adhere to accounting standards, as some debts have become irrecoverable. The Council last wrote off debt for pensioners and vulnerable residents in 2018 amounting to N$191 million. Since then, the debt book has grown to N$1.2 billion in 2022 and has since stabilized,” the City said.
In conclusion, the City said that the detailed conditions, registration dates, process and procedures for the programme will be communicated in early 2024. In the meantime, residents are urged to keep paying their accounts regularly to avoid service interruptions and to comply with the terms and conditions precedent for the debt write-off programme.