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The squabbling between coastal municipalities and Erongo RED
has been put to rest, a senior manager at the electricity distributor told the
Economist this week.
However, in direct contrast the municipalities are
maintaining that “no solution has been found”.
Acting chief executive officer of Erongo RED, Freddie Vries,
said an extra-ordinary board meeting took place two weeks ago to tackle the
problems raised by the municipalities, mainly the Swakopmund Municipality.
A follow-up board meeting has already been scheduled for
October.
All the municipalities are shareholders in Erongo RED and
were present in the board meeting, according to Vries.
Eckard Demasius, the chief executive of Swakopmund
Municipality, has repeatedly maintained that the coastal towns were better off
before the establishment of the regional distributor. The municipalities are at
pains with dwindling income from electrical distribution: Swakopmund is said to
be losing as much as N$6 million per annum through duplication of functions,
higher tariffs and excessive remuneration packages for executives at Erongo
RED, money which, it is said, could be used for infrastructure development.
The municipalities had earlier spoken of their plans to
approach the Head of State Hifikepunye Pohamba for an audience.
Vries said all these issues, “some of which were more of a
misunderstanding than anything else”, were discussed at the extra-board meeting
in which Demasius was also present.
Vries said “a resolution was passed during the board meeting
to come up with an action plan that will address the issues”.
Demasius was not available for comment. But the spokesperson
for the Swakopmund Municipality, Freddy Kaukungua, said “all I can tell you is
that no solution has been found”. He could neither confirm nor deny that an
agreement had been reached with Erongo RED to iron out the complaints.
Neither could he comment on whether the meeting with President
Pohamba had taken place.
The meeting with Pohamba was seen as the last solution after
the municipalities failed to get a favourable response from the Electricity
Control Board (ECB) during a meeting in Swakopmund. The CEO of ECB, Siseho
Simasiku, is said to have informed the municipalities that their participation
in Erongo RED was voluntary.
Simasiku, who is out of the country, did not pick up his
mobile phone when contacted for comment.
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