Urban and Rural Development Minister James Sankwasa has warned that councillors and administrative officials responsible for financial losses within regional and local authorities could be required to compensate the state.
Speaking at the 2026 Regional and Local Authorities induction training in Mariental, Sankwasa expressed concern over rising unpaid municipal bills and weak financial oversight in several councils. He said growing arrears owed by residents, government institutions and councillors themselves are placing pressure on the financial stability of municipalities and undermining their ability to deliver essential services.
Sankwasa said government is prepared to take stronger action to ensure accountability where mismanagement or negligence results in financial losses.
“I will ensure that any councillor or administrative official who causes financial damage to a government institution must be prepared to compensate the state for that loss,” he said.
The minister directed local authorities to submit lists of outstanding municipal accounts belonging to pensioners and people living with disabilities to his office for possible consideration of debt write-offs.
However, he stressed that other categories of debtors, including councillors and government institutions, would not be exempt from paying what they owe.
According to Sankwasa, councillors who have unpaid municipal accounts will be required to settle their debts, with deductions from their allowances to be implemented where necessary until the arrears are cleared.
He added that chief executive officers of local authorities must ensure strict enforcement of municipal billing systems and take steps to recover outstanding debts.
“Some newly elected councillors who owe their local authorities will have those debts deducted from their allowances until all outstanding municipal bills are fully settled. Chief executive officers must act without fail to ensure that all outstanding accounts are paid,” he said.
Sankwasa also instructed government institutions with unpaid municipal accounts to settle their bills to prevent service disruptions to local authorities.
He said the ministry will introduce stronger oversight measures to ensure that regional and local authorities comply with existing legislation and strengthen financial management practices.
According to the minister, improving financial discipline and accountability at council level is critical to restoring public confidence in local government and ensuring that municipalities are able to provide reliable services to their communities.
