Redforce threatens legal action against Rundu town council
Debt collector argues breach of contract
Redforce stressed that should the council or mayor fail to issue a public retraction of comments made to the media, the company will go the legal route.
Redforce has threatened legal action against Rundu town council following statements made to the media by the local authority's mayor that it plans to terminate its contract with the debt collector.
The legal threat came after Namibian Sun published an article earlier this month that reported on Rundu mayor Gabriel Kanyanga’s confirmation that the council, at its 24 October meeting, decided to terminate its contract with Redforce.
The basis for the contract termination was reportedly based on Redforce’s failure to reach a N$5 million monthly target since March 2021.
At the time, Kanyanga said the council had yet to confirm the minutes of the council meeting, after which Redforce would be formally informed of the decision.
Threat
However, in a letter dated 7 November, the same day the article was published, Redforce CEO Julius Nyamazana wrote to council to inform the local authority that they had breached their contract based on the comments made by Kanyanga.
"We note, with much indignance, that no such notice was provided to us prior to the commentary by the mayor, Mr Gabriel Kanyanga, in the aforementioned newspaper article," Nyamazana wrote.
"Contractually, Rundu town council should have given us notice prior to making statements in the media. Undoubtedly, this conduct by Rundu town council amounts to a material breach of the contract, as you have prejudiced us of our right (to remedy the alleged breach) in terms of the Memorandum of Agreement."
Withdraw comments
Nyamazana demanded a retraction of the statement, warning that failure to do so would lead to legal action.
"We accordingly demand that the Rundu town council and/or the mayor, remedy this breach by retracting the statements issued in the Namibian Sun of 7 November 2022, within fourteen days of this letter by issuing a public notice in the local newspapers, informing the general public that the Memorandum of Agreement is still valid, and calling upon the residents of Rundu to cooperate with the debt collection efforts, pending compliance with the relevant provisions (of breach) in the Memorandum of Agreement."
The letter stressed that should the council or mayor fail to issue a public notice within the stipulated timeframe, "we shall be left with no other option than to seek the appropriate legal recourse."
When contacted for comment, Rundu CEO Olavi Nathanael said council has taken note of the Redforce letter and the local authority is addressing the matter.
[email protected]
The legal threat came after Namibian Sun published an article earlier this month that reported on Rundu mayor Gabriel Kanyanga’s confirmation that the council, at its 24 October meeting, decided to terminate its contract with Redforce.
The basis for the contract termination was reportedly based on Redforce’s failure to reach a N$5 million monthly target since March 2021.
At the time, Kanyanga said the council had yet to confirm the minutes of the council meeting, after which Redforce would be formally informed of the decision.
Threat
However, in a letter dated 7 November, the same day the article was published, Redforce CEO Julius Nyamazana wrote to council to inform the local authority that they had breached their contract based on the comments made by Kanyanga.
"We note, with much indignance, that no such notice was provided to us prior to the commentary by the mayor, Mr Gabriel Kanyanga, in the aforementioned newspaper article," Nyamazana wrote.
"Contractually, Rundu town council should have given us notice prior to making statements in the media. Undoubtedly, this conduct by Rundu town council amounts to a material breach of the contract, as you have prejudiced us of our right (to remedy the alleged breach) in terms of the Memorandum of Agreement."
Withdraw comments
Nyamazana demanded a retraction of the statement, warning that failure to do so would lead to legal action.
"We accordingly demand that the Rundu town council and/or the mayor, remedy this breach by retracting the statements issued in the Namibian Sun of 7 November 2022, within fourteen days of this letter by issuing a public notice in the local newspapers, informing the general public that the Memorandum of Agreement is still valid, and calling upon the residents of Rundu to cooperate with the debt collection efforts, pending compliance with the relevant provisions (of breach) in the Memorandum of Agreement."
The letter stressed that should the council or mayor fail to issue a public notice within the stipulated timeframe, "we shall be left with no other option than to seek the appropriate legal recourse."
When contacted for comment, Rundu CEO Olavi Nathanael said council has taken note of the Redforce letter and the local authority is addressing the matter.
[email protected]
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