Customers of the Water and Sanitation Company in Cunene Province have accumulated debts exceeding 600 million kwanza, hindering the expansion of the regional water distribution network, according to the company’s Chairman of the Board, Dinis Simão.
To recover the outstanding amounts, Simão stated that installment payment options are being made available. Customers must pay over 50 percent of their debt upfront, while enforcement and fine collection measures have been tightened. Ultimately, water supply will be cut off for defaulters.
The total accumulated debt in the province stands at 601,733,340 kwanza, with more than 214 million owed by public institutions.
Simão highlighted that the situation also compromises the company’s ability to pay taxes and salaries, as well as to acquire consumables and chemical products needed for water treatment. The company owes suppliers over 53 million kwanza.
In terms of revenue, the water company generated 107,352,859 kwanza in the first quarter of this year—a drop of over 30 million compared to the last quarter of the previous year.
Simão added that expanding the client base remains a major challenge for the company in order to boost revenue.
The company has around 18,000 connections, of which 14,496 are active clients in the cities of Ondjiva, Anhanga, Calueque, Xangongo, Humbe, Môngua, Santa Clara, Namacunde, and Cahama.
Source: Angop
