Ondangwa residents, businesses and government ministries owe the town over N$64 million in unpaid rates and taxes.

The debt has accumulated over a period of five years, up to 31 July this year.

Town council spokesperson Petrina Shitalangaho-Mutikisha told The Namibian on Wednesday that the council's debts increased rapidly due to economic downturns and the severe effects of Covid-19.

"Council has taken note that some residents have lost their employment and income, businesses have closed or retrenched some of their employees, limiting household disposable income and purchasing power and in return, the residents ability to pay their municipal services in full," she said.

Shitalangaho-Mutikisha noted that the council's debt incentive has brought relief to many.

This follows a debt relief incentive, adopted during an ordinary council meeting on 27 July 2023, which waives interest on all accounts in arrears for residents who settle their debts within a period of 12 months between 1 October 2023 and 30 September 2024.

"So far, 1 062 account holders have benefited from this initiative, with N$26,5 million in interest being written off for a period of three months," noted the spokesperson.

Shitalangaho-Mutikisha urged residents and account holders to take this initiative seriously and settle their principal debts within the stipulated time to benefit.

"The programme is still running and applicable to all account holders classified as domestic (residential), commercial (business and industrial), non-profit organisations, community-based organisations, churches and private institutions," she said.

"However, it is not applicable to government offices, ministries and agencies, including state-owned enterprises."

The Ondangwa Town Council has employed the services of RedForce Debt Management to collect outstanding debt and recommend how to deal with the council's growing debt book.