Local authorities owe Namwater more than N$7.5 billion, with some diverting government funds meant for prepaid water meters to other uses, Urban and Rural Development Minister James Sankwasa revealed in the National Assembly.

Sankwasa explained that the massive debt has ballooned partly because councils failed to install prepaid meters as budgeted, despite allocations in the 2022-23 financial year to help them generate revenue.

"The cost of water infrastructure must be recovered, even if not 100%. Consumers are expected to pay," he said. "Prepaid meters were introduced because people kept receiving water without paying. Now, local authorities owe Namwater almost N$7.5 billion."

He added, "Government budgeted funds for councils to install prepaid meters so they could run their own affairs. But some chose not to, using that money for something else instead."