State, businesses face utility cutoffs

Government offices, institutions and businesses that owe local authorities will have their water and electricity cut if they do not settle their debt by 5 June.

The directive is contained in a circular dated 21 May, seen by The Namibian, that forms part of government efforts to improve revenue collection at struggling local authorities.

Minister of urban and rural development James Sankwasa says many municipalities are facing severe financial strain because ministries, government institutions and large businesses are failing to pay for services rendered.

Earlier this month, The Namibian reported that 14 local authorities have breached repayment arrangements with the Namibia Power Corporation (NamPower), totalling about N$635.3 million.

“The non-payment for services rendered to government ministries, government institutions and big businesses has rendered most local authorities bankrupt and unable to effectively provide services to residents,” Sankwasa says.

He says local authorities continue to cut off services to ordinary residents over relatively small debts, while government offices and large entities owe municipalities thousands and, in some cases, millions of Namibia dollars.

He says the outstanding debts are depriving councils of much-needed revenue required to maintain basic services and infrastructure.

As of March 2025, local authorities and councils owed NamPower N$2.4 billion, with municipalities alone accounting for N$150 million of this in early 2025, according to reports.

The City of Windhoek previously indicated that residents, businesses and government ministries combined owed the municipality N$1.2 billion, with some debts transferred to private collectors.

In the circular, Sankwasa reminds local authorities that the Local Authorities Act 23 of 1992 requires councils to collect all rates, service charges and other revenue due to them.

He further instructs chief executives of local authorities to ensure the directive is implemented without fail, while mayors, town councils and village councils have been directed to carry out their responsibilities in line with the law.

Sankwasa has dismissed excuses from ministries claiming they did not receive monthly accounts, saying this should not be used as grounds for non-payment after the deadline.

“I am aware that most ministries will deny having received monthly bills or accounts, but that should not be a valid reason for failing to settle outstanding accounts by 5 June,” he says.

Lawyer Richard Metcalfe yesterday said government ministries are not above the law and should also face service disconnections if they fail to pay.

Metcalfe argued that electricity supply and administration should be returned fully to local authorities, saying this would significantly strengthen municipal revenue.

He criticised regional electricity distributors, saying revenues collected are not adequately benefiting communities served by local authorities.

“It is high time these ministries are held accountable and perhaps those at leadership start questioning why ministries and government institutions who each year receive millions in the budget to sustain the ministry have outstanding municipal bills,” he added.

Independent Patriots for Change shadow minister for urban and rural development Armas Amukoto welcomes the suspension, saying it promotes accountability.

Amukoto says ministries receive a budget for operational expenses, including water and electricity, and should, therefore, settle their debts to local authorities.

“It is unfair for local authorities to carry huge debts owed by ministries, as this affects service delivery,” he says.

He urges local authorities to first reconcile accounts properly before cutting services, noting that some ministries may have already paid.

However, he says the directive could be harsh on struggling businesses still recovering from the Covid-19 pandemic, suggesting repayment agreements instead of immediate suspensions.

He also backs the installation of prepaid water meters to curb waste and prevent debt accumulation.

Erongo Regional Council chairperson Mupenzeni Ntelamo says they are executing the directive and cautions those with outstanding bills to settle them before or on the set date.

“What we have done as a council is to engage them so they can pay or make arrangements. Remember, when ministries’ water and electricity are suspended, offices close, meaning residents will not get the help from these ministries,” he says.

In 2021, a similar directive was issued when the City of Windhoek disconnected the electricity of more than eight government ministries and agencies, including the safety and security ministry, the defence ministry, the agriculture and land ministry and the mines and energy ministry, after they owed the municipality a total of N$82 million.

The ministry of land’s water supply was also cut off due to a N$4 million debt to the city.

Keetmanshoop municipality spokesperson Monica Imene-Sheehama in February revealed that as of 31 December 2025, the municipality’s water debt stood at approximately N$209 million, while its electricity debt was roughly N$50 million.

Of this debt, the Namibia Industrial Development Agency owes the municipality a N$3.9 million water and electricity debt.

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المصدر: The Namibian