A dispute has erupted between the City of Windhoek and the Khomas Regional Council (KRC) over the use of millions of dollars collected through the capital's property rates.
Veteran politician and former Windhoek mayor Fransina Kahungua wants to know if residents have benefited from the funds that run into millions.
According to Kahungu, the municipality contributes at least N$30 million to the KRC annually.
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Meanwhile, the regional council insists the money has financed clinics, schools, constituency projects and other development initiatives.
All is there to see, the council seemingly suggested.
Millions
Speaking to New Era yesterday, Kahungu said the City of Windhoek has transferred an estimated N$112 million to the KRC over the past five financial years through the mandatory five percent rates contribution required by law.
However, she said neither councillors nor residents have seen sufficient evidence of how the money has improved their lives.
Kahungu explained that Section 77 of the Local Authorities Act requires every local authority to transfer five percent of rates collected from rateable properties to the regional council within whose boundaries it falls. She said the City has complied with that legal obligation for years.
"I can tell you that over the past five financial years, the City of Windhoek paid around N$112 million. That translates to an average of about N$28 million every year to the Khomas Regional Council," she said.
However, Kahungu questioned whether the money has translated into visible improvements for residents.
"Residents want to know what the Khomas Regional Council used the money for. Personally, after serving as a councillor for all these years, I have never read any report showing how the money was spent," she said.
"Our budget is scrutinised by the Khomas Regional Council before it is approved. It is also high time for us to know how the five percent we contribute is being used," Kahungu said. She further called for a joint programme involving the city, the regional council and central government to update the database of informal settlements to help identify genuine first-time land applicants. She maintained that Windhoek should not continue carrying the burden of service delivery alone. "Every issue becomes the responsibility of the City of Windhoek: waste management, roads and many other services. Yet this is the capital city and contributes significantly to the country's economy," she said.
"We have had enough meetings. This is the time for action," she added.
Response
Responding to the concerns, KRC chief regional officer (CRO) Clement Mafwila rejected suggestions that the funds have not been accounted for, saying the council has been transparent and has invested the money in numerous development projects across the region. According to him, the council has worked closely with the City through an integrated strategic planning process and a memorandum of understanding that focused on areas such as low-cost housing, water and sanitation. "We have been very transparent. A year ago, we even held a breakfast meeting where we invited stakeholders to discuss our budget. The financial statements are clear, and the city is fully aware of the projects we are implementing," Mafwila said.
He said the money has funded a range of projects, including the construction of a clinic at Farm 508, renovations at Katutura, Hakahana and Okuryangava clinics, improvements to health facilities, soup kitchens, school infrastructure, smart classrooms, constituency projects and youth development initiatives.
"We can show you all the development projects funded through this money. We have renovated clinics, supported schools, provided computers and smart boards, established soup kitchens and funded many community projects," Mafwila said.
Mafwila added that the Regional Council has also invested in boreholes, sanitation projects, self-help housing initiatives and income-generating projects for women and young people. He said the council allocates about N$2.5 million annually to support small income-generating projects aimed at empowering youth and women.
"We have programmes that support young people and women. We are pumping this money back into our communities every year," he said.
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An estimate
The CRO also disputed the figure cited by Kahungu, saying the N$112 million was only an estimate based on projected municipal revenue.
He explained that the city only transfers five percent of the rates and taxes it collects from ratepayers, meaning the final amount may differ from budget estimates.
"The figure being quoted is an estimate. The City budgets based on expected collections, but it only pays what it actually collects," Mafwila said. He further said
the Regional Council has consistently received clean audit opinions and complies with international financial reporting standards. "Our audited financial statements are public. They show how much money we receive from the City and how it is spent. We are not hiding anything," he said. He also claimed the city still owes the regional council outstanding payments linked to the five percent contribution.
Despite their differing views, both Kahungu and Mafwila agreed that closer cooperation between the City of Windhoek and the Khomas Regional Council is needed to improve the lives of residents.
