35% of Build Together accounts are in arrears

A total of 35% of Build Together beneficiaries’ accounts are in arrears.

The Swakopmund Municipality disclosed the news at a recent parliamentary meeting. The municipality said the Build Together programme, which supports low-income Namibians in building houses, is facing huge challenges as 35% of participants are currently in arrears.

Council spokesperson Linda Mupupa said the project was expected to build 150 houses. In phases one and two, a total of 70 houses were built. “People who are in arrears with the council will have to pay a down payment of 30 per cent of the balance before they can get a construction permit. This means construction will start despite the debt owed to the council.”

She said a total of 27 of the 76 beneficiaries were reported to be in arrears with their service accounts and these persons were yet to make satisfactory payment arrangements with the finance department.

progress

Despite these financial setbacks, most beneficiaries have made progress in other areas of the program. Specifically, 70 beneficiaries signed updated deeds of sale and loan agreements, and 68 beneficiaries agreed to a transfer agreement with Pupkewitz & Sons to provide building materials. In addition, 42 beneficiaries signed consent agreements allowing the council to pay the remaining loan amount directly to their builders. However, Mupupa said five of the beneficiaries have requested to change builders.

Meanwhile, the construction process is progressing in phases. “We are currently busy with the third phase, which will see the construction of 80 properties that have been planned and approved for construction. Of these 80 properties, a total of 60 are already under construction and 76 beneficiaries have signed loan agreements,” she pointed out.

In response to the arrears, the city council sent letters to beneficiaries urging them to go to the municipal office to arrange payment. Beneficiaries who successfully arrange payment will have three months to prove their commitment before construction can begin. The municipality said that failure to meet these requirements may result in the cancellation of their co-construction loans.

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