New Era (Windhoek)

Namibia: Okahandja Counts Losses

Okahandja — The business community in Okahandja was yesterday left counting their pennies following the sudden power blackout on Tuesday.

Although no official figures have been released yet, several businesses at the town estimated that their combined losses could run into millions.

Consequently, they are calling on the municipality management to shape up or ship out. They accuse the municipality of having no clear plans for the town.

By late Tuesday afternoon, the Okahandja Municipality had restored some lost pride by successfully negotiating with NamPower for a partial reconnection of electricity.

The garden town was plunged into darkness on Monday when NamPower decided to pull the switch due to an electricity bill that is estimated at nearly N$10 million.

The 48-hour shutdown cost millions of dollars in lost business. Those severely affected were mainly the retail sector, accommodation establishments, the meat and poultry industry, as well as other industries.

Sources revealed that the municipality has accumulated a N$7.9-million debt as a result of non-payment.

The municipality blames the debts on non-payment by some residents and businesses, including government departments.

Okahandja Chief Executive Officer, Regina Alugodhi, and her team held a meeting with NamPower management to negotiate for reconnection on Tuesday afternoon.

Although this could not be independently verified, it is widely believed that the municipality made a down-payment of N$4.9 million for reconnection.

According to sources, money owed to NamPower could be as high as N$10 million. It also emerged yesterday that the municipality paid N$2.5 million from its investment account to the power utility on Tuesday afternoon with a promise to pay more later.

Sources privy to the case have revealed that the municipality would have to pay N$3 million by September 17 to avoid another black-out.

The office of the CEO remained mum on the issue yesterday, but said it will be in a position to shed more light on the shutdown on Friday. It said it would make a formal announcement on Friday about the shutdown and negotiations with NamPower.

Okahandja Country Lodge manager, Ikus Conradie, one of the affected businesses, said the municipality should get help from experts on how to run the affairs of the town.

"As a business, I pay my electricity bill and a thousand others, but it is just not understandable that a town as big as Okahandja could find itself in such a situation, what did they do with all the money?"

Conradie said his business suffered losses of up to N$10000 for the duration of the black- out.

"They must get help, someone to teach them how to deal with funds as a municipality.

They are also a business and must learn basic business skills to take care of money.

How did they get themselves into such a mess? It is purely a case of maladministration," said Conradie.

Another affected business is the Namibia Plastic Converters that employs nearly 50 permanent workers. NPC has been in business in Okahandja since 1968 and produces pipe works for domestic and industrial water usage. The company is the second highest consumer of electricity at the town after the Meat Corporation of Namibia.

Managing Director of NPC, Koos Ehlers, said his company made a loss of N$400000, as production came to a halt following the shutdown.

"The worst of all is that you don't know what is going on."

Ehlers blames the municipality for not initiating proactive discussion with the town's businesses or at least informing residents about eminent shutdown.

In the same boat as NPC is the Okahandja Plastic Converters (OPC). According to its manager, Bertus Myburgh, his company is 100 percent reliant on electricity to produce plastic storage tanks on a 24-hour basis. On Monday, production was halted completely.

"My worry is for how long this will continue now; it is good that the power is back on but until when," he wondered.

However, some retail shops escaped unharmed.

Okahandja Spar assistant manager, Eugene Wheal, said his company had a back-up generator and continued with operations.


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