Outjo residents owe the municipality N . dollars 46 million for taxes , waste collection fees , and utilities , including water and electricity . These debts are reportedly hindering the municipality ' s ability to fulfil its statutory obligations . According to the council , these debts date back to over five years ago , particularly since the COVID - 19 pandemic , when the municipality was instructed to provide water to all residents , regardless of whether they were in arrears . Following a directive from the Ministry of Urban and Rural Development in 2020 , which mandated that all residents should have access to water as a relief measure to assist those in need , particularly those in informal settlements who were financially impacted by COVID - 19 restrictions , local authorities nationwide accumulated debt . The Outjo municipality now faces substantial water bills due to this directive . " These debts are crippling the municipal cash position and ability to fulfil its statutory mandate of service delive ry ," said Rivonia Roswitha Roman , the Public Relations Officer ( PRO ) for the Outjo Municipality , in an interview with Nampa on Tuesday . " Non - payment for services leads to cash flow challenges for the council and hampers service delivery , as it affects the daily operations of the council and the payment of service providers such as CENORED for electricity and Namcor for fuel ," she added . Roman also noted that the council ' s ageing fleet of heavy - duty equipment , which requires frequent repairs , is another factor affecting the maintenance of the municipal fleet . However , the council owes its suppliers less than what businesses and residents owe it . " The municipality nevertheless owes its suppliers N . dollars 1 . 6 million ," she added . Roman emphasised that to recover its debts , the council enforces its credit policy . " The council sends out monthly invoices to the residents , and the finance department is in constant contact with residents and businesses with outstanding accounts ," she added . In an effort to compel customers to pay their bills , the council has decided to cut off utilities , such as water , for those in arrears . Roman further explained that settlement agreements are in place , allowing residents and businesses to repay outstanding balances monthly , often via bank debit orders . To encourage defaulters to enter into these agreements , the council is willing to waive the interest accrued on overdue accounts .Source: The Namibia Press Agency