Africa-Press – Namibia. FOR the next five years, residents and businesses owing the Katima Mulilo Town Council will be paying through RedForce Debt Management CC starting today.
The council is owed over N$148 million in arrears. The town’s chief executive officer, Raphael Liswaniso, on Wednesday confirmed the appointment of RedForce, saying the council resorted to the debt collector as its clients were not honouring their monthly payments.
He added that they have been patient for too long, as the debts have been accumulating since 2001.
“Our duty is to collect revenue from those who owe us. We have tried to get them to pay their debts and were not even charging them the 12% interest on the arrears, but they have failed. These outstanding debts are affecting our operational budget, as we cannot implement development projects around the town,” he said.
According to Liswaniso, residents owe the council NS$103 million for services, and N$45 million for land.
He added that out of the total N$148 million arrears, businesses and government institutions account for about N$20 million.
“They need to pay their debts now before they are enlisted, because RedForce will enforce the interest rate. If they fail, there will be serious consequences such as the repossession of property,” he stressed.
Liswaniso explained that Katima Mulilo is under-developed and the government only provided about N$1,8 million for capital projects in town this financial year. Therefore, the council needs to recover the money the residents owe to help kick-start development projects.
Should the council manage to recoup what it is owed, it can venture into businesses to increase revenue, he added.
“The money we are owed will not solve our current issues, but it can generate money for us to fund what we need to do,” he said.
Liswaniso said the council needs over N$730 million to implement development projects within the town, including upgrading the town’s roads. For the sewerage system in Ngweze, New Look, Soweto and Boma locations, the council needs N$257 million, and for standard water infrastructure it needs N$60 million.
“We are planning to upgrade the Lifasi road to a dual lane road on both sides, but we only have N$3,9 million, which is not enough because we need N$ 11 million for that project,” he said.
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