City writes off N$124m in pensioner’s debt
The City of Windhoek (CoW) announced significant progress in its pensioner debt relief initiative.City spokesperson Lydia Amutenya says N$124 million has been written off for bad debts, benefiting over 15 411 pensioners.
The initiative aims to alleviate financial burdens on the City's vulnerable groups, and is currently being implemented in phases, notes Amutenya.
“The registration process for eligible pensioners remains open, encouraging those affected to apply. While this write-off impacts our financial standing, it has been considered and implemented with a commitment to social responsibility.
“Careful consideration of all factors was essential before moving forward, as this initiative supports our community's vulnerable groups while balancing the organisation's financial resilience," she notes.
Finances
In a recent unaudited report, the City revealed a notable decline in its debt metrics. This reflected that bad debts decreased by N$244 million, largely due to improved collection efforts.
This improvement coincides with a revenue increase of N$300 million, attributed to tariff increases in property taxes and service charges, which rose from 3.4% to 5%.
Despite these positive developments, the City faces challenges with its liquidity ratios. The current ratio has improved from N$0.46 to N$0.60 for every N$1, but remains below the critical threshold of N$1.
Officials noted that further interventions are necessary to enhance financial stability.
Capital projects
During the reporting period, the CoW allocated N$141 million to capital projects, with the electricity department receiving the largest share, amounting to 50% of the budget.
Funding for these projects was sourced from long-term loans, internal revenue and government grants, totalling N$141 million.
Notable expenditures included N$60 million for a second bulk power supply point with NamPower, N$20 million for water reticulation, and N$11 million for vehicle replacements.
As of June 2023, the City's total liabilities stood at N$3 billion, with current liabilities at N$1.8 billion and a bank overdraft of N$113 million, furthermore, current long-term loans were at N$726 million.