Financial Management a Concern Among Local Authorities – Uutoni

Home Uncategorized Financial Management a Concern Among Local Authorities – Uutoni
Financial Management a Concern Among Local Authorities – Uutoni


Staff Reporter

THE Minister of Urban and Rural Development, Erastus Uutoni, has stated that financial management remains a significant concern within local authorities, particularly in relation to the collection of outstanding municipal monies.

Uutoni made these remarks during the signing ceremony for the renewal of cooperation agreements between Windhoek and 16 local authorities.

Renewal agreements were signed between the City of Windhoek and the following: Gibeon, Gobabis, Katima Mulilo, Karibib, Keetmanshoop, Luderitz, Maltahohe, Mariental, Nkurenkuru, Orangemund, Rehoboth, and Stampriet. Additionally, new agreements were penned with the Okahandja Municipality, Okahao Town Council, Ruacana Town Council, and Tsandi Village Council.


Uutoni emphasized that this vital collaboration aims to assist local authorities in enhancing their performance and resilience by developing the capacity and capability of the sector. Addressing the key challenges faced by local authorities, Uutoni noted that despite the training they receive, there are still observed challenges in their daily managerial activities.

“I want you to focus on financial management; this is where the problem lies. For example, local authority expenditure should align with your estimated collections. If you estimate that you will collect 80%, but by the end of the financial year, the local authority has only collected 30%, where does the problem lie – is it the staff, the economic base of the local authority, or the management?” Uutoni asked.

He further highlighted that the City of Windhoek provides training on how local authorities can collaborate in this regard. The minister also raised concerns about the capacity and skills within local authorities.

“When you manage a local authority, do not prioritize political party benefits. Sometimes, people without the necessary capacity are employed because political parties hire their own affiliates,” the minister said. He discouraged this practice and cautioned councilors that their primary focus should always be the well-being and prosperity of the people.

“Yesterday, we met with residents in Windhoek. They view the leadership here as their parents. They came to my office, perhaps because they perceive certain issues that need urgent attention. They informed us about their needs, trusting that we would address them promptly. This is the trust that has been placed in us. They voiced their concerns and left peacefully. If we neglect the people, circumstances will change. Let’s strive to do our best as leaders. When dealing with matters of local authorities and municipal councils, avoid excessive political considerations, as it can sometimes lead to improper processes. Our communities expect us to deliver services using the public resources entrusted to us,” Uutoni emphasized.



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