City of Windhoek Mayor Sade Gawanas said the capital city is working on balancing its books amid revelations that the municipality is currently utilising a N$200-million overdraft facility to meet its day-to-day operations.
A report, made by Councillor and former management committee member Jurgen Hecht, revealed that the city had accumulated losses estimated at N$3.2 billion since 2012 to date.
“I am not going to indulge in discussions related to the municipality’s financial standing. However, the Strategic Finance Committee is working on it, only then we can engage the public,” said Gawanas.
The Mayor, however, noted that Hecht’s report was not comprehensive and lacked some critical elements.
“So, that is why we are dealing with the issues to get to the bottom, then we can see where we are spending much and how we can reduce that. Equally, I will not talk about double-dipping,” she said.
On his part, Hecht said he was not aware of any action being taken since the tabling of his report in July to address the findings.
“I am not aware of any saving measures being implemented, but I should however not pre-empt because I am no longer in the management committee, perhaps there could be something,” he told The Brief, adding that the challenge could be the lack of financial literacy among his fellow councillors, hence a slow reaction.
The damning report also revealed that CoW had N$2.3 billion liabilities, which exceeded current assets of N$1.64 billion.
Cost drivers for the city, according to the report, include the Municipality bus services which incurs N$70 million in losses and has an existing pool of 50 bus drivers each earning N$600 000 per annum, an excessive remuneration policy, post-retirement healthcare benefits, staff vehicle finance and staff loans.
City of Windhoek cumulative losses for the past 10 years were said to now amount to N$3.2 billion after it recorded a N$480-million loss for the 2021 financial year.
As of 31 March 2022, CoW’s total outstanding debtors amounted to N$1.2 billion, of which N$929 million was in arrears, with pensioners owing N$95 million, normal clients and businesses N$120 million, State-Owned Enterprises and Government owing N$78 million.
