The Henties Bay Municipality has started replacing prepaid water meters with conventional meters after the town’s prepaid water vending system was shut down by contractor ITEM Engineering CC following a payment dispute.
Residents were left unable to purchase water tokens last week after the contractor disabled the system. The municipality has since deployed technical teams to replace the affected prepaid meters free of charge to ensure that households continue to receive water. Speaking at a public meeting with residents, Acting Chief Executive Officer Ignasia Neis said the suspension of the system was “illegal”, adding that the contractor was attempting to force early payment on funds that are not yet due. Neis explained that the prepaid meter project is valued at about N$27 million. She said the Ministry of Urban and Rural Development paid an initial N$15 million in November 2025, while the remaining balance of around N$12 million is only due in the 2026/27 financial year, which starts on 1 July.
According to her, ITEM Engineering is now demanding about 70% of the outstanding amount immediately, despite no budget being available for such payment in the current financial year. “The suspension that is taking place currently is illegal. That is what we are saying,” Neis told residents. She added that the municipality has already written urgent letters to both the Executive Director and the Minister of Urban and Rural Development. Mayor Johannes Titus assured residents that although the vending system had been shut down, the town’s water supply itself has not been disconnected. “We will not allow anyone to go without water,” Titus said, confirming that municipal teams are replacing the disabled prepaid meters with conventional meters at no cost to residents.
Neis also told residents she inherited the project and was not involved in its initial approval. She said ITEM Engineering first ran a pilot project in 2022 before the full agreement was signed in September 2025. Councillor Sifried Junios Garoeb said the previous council proceeded with the project following a directive from the ministry, but the current council must now determine the way forward. He said a legal opinion will first be sought before any decision is made on possible termination of the contract, warning that such action could carry legal consequences.
Management Committee Chairperson Danie Wehl said the municipality remains committed to electronic water metering due to its benefits for water conservation and revenue collection. However, he said a new service provider could be considered if the dispute is not resolved. Meanwhile, frustration is growing among residents and property owners, with a petition now circulating calling on Minister of Urban and Rural Development James Sankwasa to urgently intervene.
A group of residents is also planning to meet the minister upon his return from Katima Mulilo, where he is attending a family funeral. The municipality says it is currently consulting legal advisors while continuing to replace prepaid meters and restore normal water access. No timeline has yet been given for the restoration of the prepaid vending system.
By Eileen van der Schyff
