Staff Reporter
THE City of Windhoek has said that it will continue to enlist the services of the Red Force debt-collecting agency, despite public petitions against it.
The City of Windhoek said that it’s debt has now reached a total of N$1.2 billion due to its delay in cutting off water and electricity services in arrears due to moral considerations, which has exacerbated the situation.
This decision comes in the wake of the Katutura Residents Committee’s recent request for the Minister of Urban and Rural Development to intervene in Red Force debt collectors cutting off their water and electricity supply, and their call for the City of Windhoek to discontinue using Red Force’s services.
During the press briefing held at the council chambers of the City of Windhoek today, it was revealed that the city lacks the manpower to manage accounts that are in arrears, with a total of 68,000 accounts in debt. Furthermore, it was disclosed that approximately 20,000 pensioners owe the City N$255 million.
Herold Akwenye, Public Relations Officer within the City of Windhoek, noted that the city has also taken note of non-pensioner residents who are petitioning to rally support against Red Force to avoid paying their municipal bills. He added that the City of Windhoek will be investigating the reconnection of defaulters.
Deputy Mayor Magdalena Lombardt, giving a statement at the event, explained that the City of Windhoek has the mandate to suspend pre-paid services to recover outstanding debts for various services rendered. She emphasized that this action aligns with electricity regulation 20 as amended.
In response to the residents of Katutura’s request for prepaid meters to be installed for both water and electricity, the deputy mayor pointed out that the installation of prepaid water and electricity meters has faced challenges due to financial constraints and limited manpower. While the provision of prepaid electricity meters is free for pensioners, the City of Windhoek stated that water meters must be paid for.
It was also revealed that the City of Windhoek has spent a total of N$6 million to date on the rollout of prepaid meters, with a total of 1,400 prepaid meters installed, benefiting 723 pensioners.
Regarding the City ending its contract with Red Force, the deputy mayor explained that the City of Windhoek charges 20% per annum on arrears, while Red Force charges 10% on amounts paid. She clarified that prior to the appointment of Red Force, clients’ accounts were handed over to attorneys for further debt collection.
Lombardt said, “Those accounts handed over for legal collection to external attorneys accumulated vast amounts of debt, which placed a significant financial burden on the City and the clients, as the attorneys charged legal fees even if they had not collected the amount from the defaulters. It should be noted that no pensioner residential property accounts are handed over to Red Force, and there is no interest charged on accounts handed over to Red Force for all residents, apart from the collection of a 10% fee on each payment made.”
The Deputy Mayor however added that the City is working on the proposal to write off pensioner debts and interest rates for all residents.
Leave a Reply