Coen Welsh | Nov 14, 2017 | 0
City owes government N$575 million
The City of Windhoek’s current liabilities which are N$941 million, exceed their current assets of about N$531 million and their current liabilities include loans from lending agreements, in particular with government amounting to approximately N$575 million.
Joshua Amukugo, Spokesperson for the City stated that they have requested government to consider writing off this debt. “Should government consider to write off this debt it will naturally place the City back in to a healthy financial position, as a matter of fact, these loans are not supposed to feature under liabilities but under long term loans,” he announced.
Joshua explained that the City also pays its bulk suppliers NamPower, N$125-N$130 million per month and NamWater N$25-N$30 million per month which they normally pay in July of the subsequent financial year.
“We still manage to meet our monthly payment obligations and we have a sound monthly income that enables us to meet our expenditures and it should be noted that the City’s financial position further reflects its corporate mandate of an institution that is not for gain or profit, but that should function sustainably, therefore all revenue generated is re-invested back into infrastructural development and operations.” he confirmed.
He stated that the City’s financial challenges include lack of external capital expenditure funding, lack of government subsidies for vulnerable residents, urbanization that puts pressure on infrastructure, high unemployment in the City, outstanding general debts amounting to N$514 million and government and parastatals accounts for services, standing at N$50 million.