Govt blocks local authorities’ pay hikes
Despite the cost of living increasing on an almost monthly basis, the urban and rural development ministry has blocked local authorities from adding salary increments to their 2022/2023 budgets.
This is contained in a circular dated 13 June, signed by the ministry’s executive director Nghidinua Daniel, directed to the accounting officers of all local authorities.
The announcement follows local authorities submitting 2022/2023 budgets which included salary adjustments, which the ministry said it will not approve.
“This circular therefore serves to request the councils to remove any budgetary provisions made for salary adjustments for staff members from their budgets for the time being and to submit your budget for the 2022/2023 financial year to the ministry for consideration and approval,” Daniel wrote.
“This intervention has been necessitated and takes into account the fact that the ministry has already received requests for approval of salary adjustments for the 2022/2023 financial year from some councils on the one hand, and will allow the ministry to undertake and conclude consultations with other decision bodies at central government levels.”
Drowning in debt
In the statement, Daniel argued that local authorities are already drowning in debt as they are failing to pay creditors and third-party service providers as well as their high debts with NamWater and NamPower. This, while revenue collection remains poor.
“An analysis of the financial performance of various local authority councils indicates that they are already struggling to finance their basic operating expenses due to overall decline in economic activities and a subsequent reduction in revenue collection,” he wrote.
“The negative impact of the economic downturn on the affordability of residents has been worsened by the negative impact of the Covid-19 pandemic.
“Due to the existing agreements in principle with trade unions, the above-mentioned disapproval resulted in labour disputes being declared at some local authority councils as well as persistent appeals to the ministry to reconsider the disapproval - despite a Cabinet directive to that effect.”
Government - through Cabinet - last year resolved that no salary increments would be granted for civil servants, who have not seen an increase in several years.
In May, Oshakati town council employees voted in favour of downing tools after their request for salary increments was denied by the ministry. The same happened at the Rundu town council.
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This is contained in a circular dated 13 June, signed by the ministry’s executive director Nghidinua Daniel, directed to the accounting officers of all local authorities.
The announcement follows local authorities submitting 2022/2023 budgets which included salary adjustments, which the ministry said it will not approve.
“This circular therefore serves to request the councils to remove any budgetary provisions made for salary adjustments for staff members from their budgets for the time being and to submit your budget for the 2022/2023 financial year to the ministry for consideration and approval,” Daniel wrote.
“This intervention has been necessitated and takes into account the fact that the ministry has already received requests for approval of salary adjustments for the 2022/2023 financial year from some councils on the one hand, and will allow the ministry to undertake and conclude consultations with other decision bodies at central government levels.”
Drowning in debt
In the statement, Daniel argued that local authorities are already drowning in debt as they are failing to pay creditors and third-party service providers as well as their high debts with NamWater and NamPower. This, while revenue collection remains poor.
“An analysis of the financial performance of various local authority councils indicates that they are already struggling to finance their basic operating expenses due to overall decline in economic activities and a subsequent reduction in revenue collection,” he wrote.
“The negative impact of the economic downturn on the affordability of residents has been worsened by the negative impact of the Covid-19 pandemic.
“Due to the existing agreements in principle with trade unions, the above-mentioned disapproval resulted in labour disputes being declared at some local authority councils as well as persistent appeals to the ministry to reconsider the disapproval - despite a Cabinet directive to that effect.”
Government - through Cabinet - last year resolved that no salary increments would be granted for civil servants, who have not seen an increase in several years.
In May, Oshakati town council employees voted in favour of downing tools after their request for salary increments was denied by the ministry. The same happened at the Rundu town council.
[email protected]
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