Some local authorities are owed more than N$162 million by government ministries, institutions and businesses as the deadline for settling outstanding municipal accounts expires today.
The debt burden has placed severe financial pressure on councils, prompting the government to direct municipalities to disconnect water and electricity services to defaulting state entities and large businesses.
This comes after the urban and rural development minister James Sankwasa last month directed all local authorities to cut off services of ministries with outstanding debts that fail to settle their accounts on or before today.
In a circular dated 21 May, Sankwasa says many municipalities are facing severe financial strain because ministries, government institutions and large businesses are failing to pay for services rendered.
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"I am aware that most ministries will deny having received monthly bills or accounts, but that should not be a valid reason for failing to settle outstanding accounts by 5 June," he said.
Speaking to The Namibian yesterday, Mariental Municipality chief executive Paul Nghiwilepo said the municipality is owed N$4.6 million.
"Ministries pay, it's just that some take too long to pay but eventually, they do pay," he said.
Rundu Town Council assistant spokesperson Prisca Marembo says as of 3 June, the balance owed to the council by government offices stands at N$34 million.
She also reveals that the business and industrial areas owe council N$62.6 million and N$66.7 million, respectively.
"The non-payment for services rendered to government ministries, government institutions and big businesses has rendered most local authorities bankrupt and unable to effectively provide services to residents," Sankwasa says.
He says local authorities continue to cut off services to ordinary residents over relatively small debts, while government offices and large entities owe municipalities thousands and, in some cases, millions of dollars.
He says the outstanding debts are depriving councils of much-needed revenue required to maintain basic services and infrastructure.
As of March 2025, local authorities and councils owed the Namibia Power Corporation N$2.4 billion, with municipalities alone accounting for N$150 million of this in early 2025, according to reports.
The City of Windhoek previously indicated that residents, businesses and government ministries combined owed the municipality N$1.2 billion, with some debts transferred to private collectors.
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