Rundu to discuss whether to divorce Redforce
Debt collector fails to meet targets
Redforce was expected to rake in a minimum of N$5 million a month from Rundu's defaulters, but the last time the company managed to meet this target was February 2021.
A meeting slated for next Tuesday will see Rundu town council office-bearers deliberate on whether to terminate Redforce Debt Management’s contract.
This after the debt collector failed to meet its N$5 million monthly target since March 2021.
Rundu CEO Olavi Nathanael confirmed the meeting, adding that deliberations on Redforce are
“on the agenda”.
It has been six months since the Office of the Attorney-General (AG) gave the town council the green light to terminate its contract with Redforce.
The debt collector is also facing the axe because it allegedly breached the agreement as far as data collection is concerned.
The council - through the urban and rural development ministry - sought a legal opinion from the AG’s office last November following Redforce’s poor performance in hopes of terminating the contract.
The debt collector was expected to rake in a minimum of N$5 million a month from Rundu’s defaulters; however, the last time the company managed to meet this target was in February 2021.
Terminate it
According to a letter dated 19 April, AG Festus Mbandeka advised urban and rural development minister Erastus Uutoni that the debt collector indeed breached the contract it entered into with the town council.
“Redforce did not meet the target amount of N$5 million from March 2021 to October 2021 and furthermore. Redforce did not collect data as provided for in [the] terms [of the contract], therefore this amounts to material breach of contract,” he wrote.
“We therefore wish to advise that council may terminate the memorandum of agreement.”
Missing targets
During a meeting in July, the council was furnished with a report on Redforce’s performance by the town’s finance department, which showed that the debt collector has continued to fail to meet its target.
According to the document, dated 28 June and seen by Namibian Sun, Redforce has not made its target once this year.
The highest amount was collected in March when N$3 802 942.81 was received from the town council’s defaulters, while in January, it collected the lowest amount of N$2 555 022.08.
Meanwhile, the document also indicated that the company submitted a number of reports suggesting that it is not getting necessary support from the local authority.
“Redforce has submitted multiple reports lamenting the lack of support from council as one of the reasons why they have not been able to meet their monthly target. There has always been pushback from community members in protest of Redforce’s appointment and activities,” it read.
“Notwithstanding, one can conclude that if Redforce had the necessary support from all parties involved, collections would be higher.
“It is therefore our considered opinion that the issues raised in the reports are indicative of the challenges currently on the ground and unless those challenges are addressed by council, we will never be able to recover all the monies owed to us, much less improve service delivery,” the report said.
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This after the debt collector failed to meet its N$5 million monthly target since March 2021.
Rundu CEO Olavi Nathanael confirmed the meeting, adding that deliberations on Redforce are
“on the agenda”.
It has been six months since the Office of the Attorney-General (AG) gave the town council the green light to terminate its contract with Redforce.
The debt collector is also facing the axe because it allegedly breached the agreement as far as data collection is concerned.
The council - through the urban and rural development ministry - sought a legal opinion from the AG’s office last November following Redforce’s poor performance in hopes of terminating the contract.
The debt collector was expected to rake in a minimum of N$5 million a month from Rundu’s defaulters; however, the last time the company managed to meet this target was in February 2021.
Terminate it
According to a letter dated 19 April, AG Festus Mbandeka advised urban and rural development minister Erastus Uutoni that the debt collector indeed breached the contract it entered into with the town council.
“Redforce did not meet the target amount of N$5 million from March 2021 to October 2021 and furthermore. Redforce did not collect data as provided for in [the] terms [of the contract], therefore this amounts to material breach of contract,” he wrote.
“We therefore wish to advise that council may terminate the memorandum of agreement.”
Missing targets
During a meeting in July, the council was furnished with a report on Redforce’s performance by the town’s finance department, which showed that the debt collector has continued to fail to meet its target.
According to the document, dated 28 June and seen by Namibian Sun, Redforce has not made its target once this year.
The highest amount was collected in March when N$3 802 942.81 was received from the town council’s defaulters, while in January, it collected the lowest amount of N$2 555 022.08.
Meanwhile, the document also indicated that the company submitted a number of reports suggesting that it is not getting necessary support from the local authority.
“Redforce has submitted multiple reports lamenting the lack of support from council as one of the reasons why they have not been able to meet their monthly target. There has always been pushback from community members in protest of Redforce’s appointment and activities,” it read.
“Notwithstanding, one can conclude that if Redforce had the necessary support from all parties involved, collections would be higher.
“It is therefore our considered opinion that the issues raised in the reports are indicative of the challenges currently on the ground and unless those challenges are addressed by council, we will never be able to recover all the monies owed to us, much less improve service delivery,” the report said.
[email protected]
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