Khomas Regional Council: N$100m Funds Transparency Concerns

• The City of Windhoek contributes at least N$30 million annually to the Khomas Regional Council through the mandatory five percent rates contribution.
• An estimated N$112 million has been transferred from the City to the KRC over the past five financial years.
• Residents have not seen sufficient evidence of how their lives have improved as a result of these transfers.
• 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.

Despite this significant investment, residents have not seen sufficient evidence of how their lives have improved as a result.

A long-standing dispute between the City of Windhoek and the Khomas Regional Council (KRC) has reignited over the use of millions of dollars collected through the capital's property rates. The controversy centers around whether residents have benefited from the funds, with veteran politician Fransina Kahungu questioning the lack of transparency in how the money is spent. According to Kahungu, the City of Windhoek contributes at least N$30 million annually to the KRC, with an estimated N$112 million transferred over the past five financial years through the mandatory five percent rates contribution required by law. However, despite this significant investment, residents have not seen sufficient evidence of how their lives have improved as a result. 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, and the City has complied with this obligation for years.

The dispute highlights the importance of transparency in financial dealings between local authorities. According to Section 77 of the Local Authorities Act, every local authority must transfer five percent of rates collected from rateable properties to the regional council within whose boundaries it falls. This requirement has been in place for years, and the City of Windhoek has consistently complied with this obligation. However, despite this compliance, residents have not seen sufficient evidence of how their lives have improved as a result of these transfers. The lack of transparency has led to concerns that the money is being misused or not accounted for, which could have serious consequences for local authorities and regional councils alike.

The controversy surrounding the Khomas Regional Council's N$100m funds highlights the need for greater transparency and accountability in financial dealings between local authorities. Lawyers advising municipalities and regional councils should be aware that transparency is crucial, as lack of accountability can lead to public outcry and potential legal action. Ensuring that financial transactions are properly documented and communicated to stakeholders is essential to maintaining trust and confidence in local authority finances. The Khomas Regional Council's response to the concerns raised by Kahungu has been met with skepticism, and it remains to be seen whether the council will take steps to address these concerns and improve transparency.

Lawyers advising municipalities and regional councils should be aware that transparency in financial dealings between local authorities is crucial, as lack of accountability can lead to public outcry and potential legal action. They should ensure that their clients' financial transactions are properly documented and communicated to stakeholders.

Source: Original reporting via New Era