Renthia Kaimbi
The Keetmanshoop municipality is allegedly broke and unable to pay its employees for October, urban and rural development minister James Sankwasa has confirmed, amid mounting concerns over the council’s nearly N$100 million debt to NamWater and allegations that political campaign promises contributed to the financial crisis.
Sankwasa said the ministry would not bail out the municipality, accusing the council of deliberately contributing to its financial predicament. He also questioned the decision by three councillors to travel to Cape Town without ministerial approval while the municipality struggles to meet its salary obligations.
“They are broke and can’t pay salaries this month. And as leaders, how do you travel to a foreign country if you can’t pay salaries?” he asked.
The minister said the government would not use public funds to rescue the council from a crisis he believes resulted largely from its own actions.
“I will not bail them out. They are deliberate,” he said.
The financial crisis comes after the municipality reportedly used Build Together Project (BTP) funds and money owed to it by the Keetmanshoop Electricity Business Unit (KEBU) to pay September salaries for more than 250 employees.
A leaked round-robin council resolution dated 21 September 2026 shows that the council approved the use of available BTP funds, where permissible, and outstanding money owed by KEBU to meet the September payroll.
The document stated that the municipality had insufficient funds in its Main Cheque Account to pay employees by the 25 September deadline.
The resolution authorised management and relevant officials to facilitate the transfer and use of the funds, subject to applicable financial requirements and confirmation of the amounts available.
However, the arrangement appears to have provided only temporary relief, with Sankwasa now confirming that the municipality cannot meet its October salary obligations.
An investigation by the Windhoek Observer found that residents owe the municipality more than N$84 million, while the council’s debt to NamWater has reportedly climbed to nearly N$100 million.
Sources familiar with the municipality’s finances said the council’s debt to NamWater stood at approximately N$6 million before the Covid-19 pandemic, before increasing to N$36 million after local authorities provided water to residents, including those whose accounts had been suspended, as a public health measure.
The debt has since risen sharply, with sources attributing part of the increase to alleged non-payment by residents following campaign promises made by the Landless People’s Movement (LPM) during the 2020 regional and local authority elections.
Sources on the ground alleged that some residents stopped paying for municipal utilities after being promised during the campaign that they would not have to pay for services if they voted the party into power.
These allegations could not be independently verified.
However, the LPM’s deputy operative secretary, Eneas Emvula, dismissed the claims as “unrealistic”, saying the party had directed its councillors to develop strategies to generate revenue for local authorities and pursue viable relief arrangements with bulk utility suppliers, including NamWater and NamPower.
He said the party had also supported a shift from conventional utility supply to prepaid systems.
“As far as campaign messages are concerned, we’ve heard the likes of 50 000 houses and free education that moved to subsidized education. It is unrealistic to send out such a campaign message. I cannot confirm or agree that our party office sanctioned such a message. Whoever came up with such a gimmick is not talking in favour of the Land People’s Movement,” Emvula said.
The municipality’s financial difficulties have also been attributed to delayed payments by government offices, ministries and agencies, as well as private businesses, according to municipal sources.
Sources further pointed to ageing water infrastructure, claiming that about 40% of the water purchased by the municipality is lost through damaged and leaking pipes before reaching consumers. The council must nevertheless pay NamWater for the water supplied, adding to its financial burden.
The reported losses raised questions about the sustainability of the municipality’s water distribution system and its ability to recover costs while maintaining services.
The council has reportedly not approached the ministry of urban and rural development for a bailout but has allegedly asked NamWater to ring-fence interest and charges on its account.
Sankwasa’s refusal to provide financial assistance places pressure on the municipality to identify alternative ways of meeting its obligations, including its wage bill and outstanding utility debt.
When contacted for comment, Keetmanshoop mayor Emrico Blaauw said he was aware of the allegations but declined to comment further.
“I’m aware of the allegations but cannot talk about it. There are channels to follow,” Blaauw told the Windhoek Observer.
The municipality’s public relations officer, Monica Imene, also declined to comment, saying the council would review the questions raised.
“Thank you for sharing your queries. The municipality is currently unable to comment on the matter. However, we will review the questions raised and provide a response in due course,” Imene said.
