KARIBIB Town Council is facing significant losses in revenue as a result of the free water distribution programme for its residents in the wake of the Covid-19 pandemic.
The chief executive officer of the council, Lesley Goreseb, told the town’s financial revenue reserves will only last another two months if the government does not come up with a rescue plan for local authorities.
“We might not be able to operate the institution within the next two months. We will not be able to get an income because the residents don’t pay for water any longer. When we close down, we will not be able to collect waste, we will not able to do sewerage, provide water or do any maintenance for that matter. Our workers will simply say if we are not getting paid, we are not working,” says Goreseb.
Karibib’s monthly operating expenses stand at around N$1,4 million. Goreseb added that the town is currently operating from its investment resources, which he says will carry them through this month.
He fears that local authorities night not have the resources to fight the Covid-19 pandemic if the government doesn’t provide them with operational funds upfront.
“Currently, we have a very big problem and I foresee this being seen [as an emergency only] when I won’t be able to pay the council staff salaries, or the trucks for waste collection cannot move because we don’t have money for diesel. That’s the time that people will wake up and smell the coffee,” he explained.
The council has been providing free water to residents at informal settlements for the duration of the lockdown, and has installed seventy-three prepaid meters in households with generational debts to give them access to water.
“Ninety percent of our income comes from the water which we have to buy from NamWater. What people need to understand is that NamWater gives us a bill.
“We have paid over five hundred thousand to NamWater and now we are obliged to give around 80 000 litres of water to the community for free every third day, which is unaccounted for currently,” he added.
Goreseb added that the bill for free water is being ring-fenced and they are expecting government to refund them. However, those with prepaid and conversional water meters still have to pay for water.
The town’s monthly bill to NamWater is around N$600 000.
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