GOVERNMENT last week paid the last N$340 million of the N$600 million owed to Italian dam builder Salini Impregilo SpA for work done on the Neckartal Dam, established yesterday.
This year, Salini, which was awarded the N$2,8 billion contract to build the dam near Keetmans-hoop, stopped operations at the construction site three times because of government’s non-payment.
In September, treasury directed NamWater to borrow the money to pay Salini’s outstanding invoices of N$600 million.
In October, NamWater released N$200 million from its cash reserves to the agriculture ministry to pay part of what was owed to Salini.
The agriculture ministry’s permanent secretary, Percy Misika, yesterday confirmed that NamWater last week transferred N$400 million to the ministry’s bank account to settle the outstanding N$340 million still owed to the company.
“We have settled all outstanding Salini invoices,” he stated.
Misika could, however, not say where NamWater had sourced the N$400 million to bail out government to settle the bill.
Attempts to get comment from NamWater’s spokesperson, John Shigwedha, yesterday were unsuccessful as his cellphone went unanswered.
Misika also revealed that the agriculture ministry has started making payments totalling N$6,8 million on unpaid electricity and water bills of state veterinary offices.
The Namibian last week reported that many state veterinary offices countrywide have been without electricity – some since April this year – over unpaid bills.
Electricity to state veterinary offices at Outjo, Otavi, Kamanjab, Okahandja and Khorixas had been disconnected because of long-outstanding bills, The Namibian was informed.
According to sources within the agriculture ministry, government was battling to pay bills due to severe financial constraints.
“We are told the ministry has no money,” said a source, adding that the “Neckartal Dam project had eaten up all the money”.
Sources indicated that water supply was also cut to the Otavi office over unpaid bills.
Area farmers have been contributing money to pay for fuel for generators used at most of the affected agriculture offices in order to ensure the continuation of services with livestock transport permits issued by those offices.
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