The Walvis Bay municipality recently announced it has procured the services of RedForce Debt Management to recoup debt of N$375 million owed by residents at the harbour town.
Walvis Bay municipality spokesperson Kevin Adams last week said the decision to involve in an external agency was taken following careful consideration of the complexity and magnitude of the outstanding debt and after exhausting all internal debt-collecting measures.
He said appointments and calls for expression of interest were done in accordance with the Public Procurement Act.
“The procurement process was followed to the letter, following the advertising of an open national bid.”
Adams said the municipality is aware of some complaints from residents at other local authorities regarding the conduct of debt-collecting agencies, including RedForce.
“To address these concerns, the Walvis Bay municipality will work closely with RedForce to ensure that debt-collection practices are fair, transparent and respectful of the debtors’ dignity,” he said.
Queried on the municipality’s expectations from the agency in terms of deliverables and timelines, Adams said these are based on the agreed-upon terms of reference as contained within the service level agreement.
“Transparent communication between the municipality and the agency will be crucial to measure the effectiveness of the partnership,” he said.
He said the municipality will work closely with RedForce to establish clear and well-defined terms of agreement from the outset, which will help minimise the likelihood of misunderstandings and disputes.
“Regular communication channels will be maintained to promptly address any emerging concerns, ensuring a smooth working relationship throughout the contract period,” Adams said, adding that the municipality is committed to upholding ethical standards throughout the process.
PROTESTS
The Katutura Residents Committee has been at the forefront of protesting against RedForce’s appointment by the City of Windhoek.
Last week, the committee staged a demonstration at the Ministry of Urban and Rural Development’s head office in Windhoek, calling on minister Erastus Uutoni to remove the City of Windhoek leadership.
“The city’s sole focus is only on monetary gain, without considering the circumstances of the residents,” said committee spokesperson Shaun Gariseb.
Committee chairperson Benestus Kandundu said the municipality should focus on strengthening its internal debt-collection processes.
“Who proposed the appointment of RedForce, and why is the company the only entity getting these tenders at all local authorities?”
Kandundu urged the agency to reveal its debt-recovery policy and how it aligns with that of the City of Windhoek.
In June, Okahandja residents joined the Katutura Residents Committee in a march that culminated in the handing over of a petition at the City of Windhoek’s head office.
City of Windhoek spokesperson Lydia Amutenya in an interview with Desert Radio last week said: “Prior to the appointment of RedForce, client accounts were handed over to attorneys for debt collection and those accounts were handed over for legal collection, and this placed a huge financial burden on the city and its clients.”
Amutenya said accounts handed over to RedForce were those of clients who have been in arrears for over four months.
She said residents are given ample opportunity to pay before being handed over, including making payment arrangements.
“You still have the opportunity to come to the City of Windhoek, and we can make arrangements.”
ETHICAL
RedForce chief executive Julius Nyamazana last week said the agency’s collection methods are holistic and ethical and are derived from credit control policies that govern its clients.
Describing the demonstration as unfortunate, Nyamazama questioned the motives of the protesters.
“It is our considered opinion that these leaders are intentionally inciting residents to serve their own interests and detract from their responsibilities,” he said.
Leave a Reply