Africa-Press – Namibia. The Rehoboth Town Council (RTC) has cancelled a planned auction of its vehicle fleet and instead opted to pay former employee Bertha Drotsky N$1.8 million from its operational budget.
RTC CEO Ronald Windswaai confirmed the auction had been called off and the settlement amount was paid into a trust account as the legal dispute continues. The case is scheduled to return to court on 10 September 2025. “The money will remain in that account until the appeal hearing is concluded,” he said.
Windswaai admitted that the diversion of funds had disrupted payments to key third parties, which normally cover essential expenses such as medical aid, pension funds, and tax contributions. He explained that RTC’s revenue streams are limited, making it difficult to absorb unexpected expenses.
“The council’s only source of income is from basic services and the selling of land. We do not have any other source of income,” Windswaai said.
To plug the N$1.8 million hole, RTC has turned its focus to outstanding consumer accounts. Windswaai said the council will recover the money from residents who are in arrears or have defaulted on payment agreements. “We have no choice but to recover it from arrear accounts of consumers and those that default continuously,” he said.
The recovery plan means services such as water, electricity, sewer, and maintenance are at risk of suspension for households behind on payments.
Despite these measures, Windswaai insisted that core service delivery will continue. He said most water and electricity is prepaid, which secures immediate revenue, and several capital projects are protected by outside funding.
“Most projects, such as roads funded by the Road Fund Administration, are safeguarded and good to go,” he said.
When asked what RTC’s contingency plan is, Windswaai said if the court rules in RTC’s favour, the funds will be returned immediately.
“If the ruling is in our favour, the lawyers of Ms Drotsky are bound to return the funds immediately,” he said.
The explanation from the council has, however, done little to calm residents’ concerns. Sonia Carew expressed frustration and disappointment, questioning the council’s competency.
“I questioned their competency from the beginning. Do they even understand the Local Authorities Act? Can they properly read and interpret budgets and financial statements?
“This is not just a double-edged sword, it’s a betrayal. When RTC has no money, and they don’t know where else to turn, they dip into the funds meant to keep our water flowing and our lights on. And who suffers? Not the decision-makers, but the ratepayers.”
Carew expressed fears the council’s plan to cut off water and electricity for households in arrears will push struggling families deeper into hardship. “Why are we being punished for the failures and negligence of staff and councillors?” she asked.
She also accused RTC of failing to prioritise its debts responsibly over the years. “With millions flowing in monthly from prepaid electricity sales, NamPower and NamWater debts should have been settled long ago. Instead, the council has allowed interest to pile up while services remain at risk.”
Carew, along with other citizens, has petitioned Urban and Rural Development Minister James Sankwasa to order a full forensic audit into the council’s finances.
“The people of Rehoboth have suffered enough under this council,” she said. “To further victimize residents, especially so close to elections, would not only be reckless, but it would also be political suicide.”
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