KEY POINTS
- MURD approves NAD26 million ($1.43 million) debt relief for Rehoboth.
- Housing scheme debt relief impacts 609 properties.
- Government invests NAD26 million ($1.43 million) in prepaid meters.
Namibia’s Ministry of Urban and Rural Development (MURD) has defended its decision to approve a NAD26 million ($1.43 million) debt write-off for the Rehoboth Town Council. The move, tied to the council’s housing alienation scheme, is part of a broader strategy to resolve long-standing issues associated with the program.
The debt relief, unveiled recently by the town council, addresses unpaid balances linked to 609 properties in Block E of Rehoboth. These houses and erven form part of a larger housing scheme aimed at facilitating property ownership for lessees and buyers under specific historical conditions.
Legacy housing policy in focus
According to New Era Live, Nghidinua Daniel, executive director of MURD, explained in an interview that the housing alienation scheme, initiated under the former Ministry of Local Government and Housing, targeted residents leasing municipal houses or holding municipal housing loans before mid-1991.
“The scheme applied to lessees who, as of 13 July 1991, had leased old municipal houses for seven years or longer, as well as to existing purchasers with municipal loans predating 31 July 1991,” Daniel said.
The initiative aligns with Cabinet Decision No.16*/17.09.24/011, which authorized the transfer and donation of properties under Rehoboth’s Old Kaptein Hans Diergaardt Raad. This included brick houses, even with informal structures, and older housing allocated through the government’s Alienation Scheme.
Strengthening fiscal controls
Daniel highlighted that the Cabinet had also instructed MURD and the Ministry of Finance and Public Enterprises to evaluate the viability of writing off debts tied to these properties.
To curb future utility debt accumulation, MURD has been advising local authorities to enforce stringent credit and debt management policies aligned with national regulations. “The ministry routinely calls on government offices, ministries and agencies to settle outstanding debts to local authorities so they can meet obligations to NamPower and NamWater,” Daniel added.
Utility debt challenges
Namibia’s government has allocated N$250 million($13.72 million) for the 2024/25 fiscal year to equip local authorities with prepaid water and electricity meters. This measure aims to enhance revenue collection and ensure residents remain current on rates and taxes.
Currently, the Rehoboth Town Council owes NamWater NAD14 million($0.77 million) and NamPower NAD190 million($10.44 million), underscoring the financial strains faced by local authorities. Daniel noted that equipping homes with prepaid meters would improve fiscal discipline and secure a more sustainable model for utility payments.
The debt write-off marks a significant step in addressing Rehoboth’s financial woes, but it also highlights the critical need for comprehensive reforms to bolster fiscal responsibility across Namibia’s local authorities.
