The Minister of Urban and Rural Development, James Sankwasa, has raised concerns about financial mismanagement and unfair practices within the Katima Mulilo Town Council.

He cited the auditor's report, which highlighted irregularities in tenders, land allocation, and service delivery.

Speaking at a public meeting in Katima Mulilo, Sankwasa revealed that no Chinese-owned business in the town has ever paid for water or electricity.

He also questioned the renovation tender of the Council's guesthouse, which was originally quoted at N$986,000, but it was instead awarded at N$1,043,000.

"Eventually, after the renovation, the final invoice was N$2.8 million on the renovation of the guest house, not the construction of a new guest house."

The minister also addressed the issue of the debt collection company, Redforce.

"When I gave a directive that the Redforce contract must not be renewed, the first reaction came from the Katima Mulilo Town Council, saying the minister was wrong. But this report reveals that Redforce never even had a contract with the Katima Mulilo Town Council."

There is also a double allocation of plots for Chinese and Namibian nationals.

"The Namibian was charged between N$600,000 and N$800,000; for the same plot, a Chinese is charged N$200,000 to N$300,000. We should be serious in this region."

The minister warned incoming councillors to guard against maintaining the status quo.

Sankwasa dissolved the council management this year, after several allegations of maladministration. 

The minister commended the council and the residents for keeping the town clean through the Cash- and Food-for-work initiative.

He further reassured residents that water and electricity supply challenges were being addressed.

The government, he said, has made available N$100 million for services at Nova, Macaravani, and Dairy, while the Bukalo Village Council also received N$35 million.