Govt opposes external debt collectors

Urban and rural development minister Erastus Uutoni has appealed to local authorities to curb their reliance on external debt collectors to recover funds from defaulting clients.He said local authorities should rather engage account holders to find out what the reasons for non-payment are and enter into agreements, instead of enlisting a third party to do their work.The handing over of accounts to external debt collectors means those who are employed by local authorities to collect debts become mere ‘salary collectors’, Uutoni said.“I am appealing to local authority councils not to resort to handing over your residents to third parties. Do not do that. You cannot outsource your public service which you are employed for.” Yesterday, during the official opening of the 11th edition of the Ondangwa Trade and Industrial Exhibition (OTIE), Uutoni said: “You are handing over your communities to third parties and that is why they are not happy. We have to make sure that we make use of our credit control systems and policies. Let them work. People should not just sit in their offices and at the end of the month collect their salaries”.“Engage the community, they are not difficult people. I am encouraging everyone, not only Ondangwa,” he said.Legal battlesUutoni’s sentiments on debt collectors comes at a time when several local authorities - including Ondangwa - have enlisted the services of debt collectors to recover millions owed by residents.Redforce Debt Management, which collects debt on behalf of Ondangwa, the City of Windhoek, Oshakati and Walvis Bay, has been making headlines as residents express their dissatisfaction over the manner in which it operates.At the moment, Redforce is facing legal battles as some local authorities have attempted to cancel their contracts with the company.The Rundu Town Council is among the the local authorities that have cancelled their contracts with Redforce, only to be hit with an over N$9 million civil claim.The Walvis Bay municipality also attempted to cancel its contract, which Redforce then challenged in court. The company successfully got an interdict and may continue with its operations.As for the two northern towns Oshakati and Ondangwa, disgruntled community members have aired their dissatisfaction, but these councils continue to honour their contracts.EmpoweredShortly after the official opening of the OTIE, Namibian Sun asked Uutoni whether local authorities engage his office before entering into agreements with debt collectors. He said local authorities are empowered by the Local Authorities Act to enter into public-private partnerships. He, however, discouraged local authorities from handing over their responsibilities to a third party.Uutoni has often said that local authorities should engage their clients more often and exhaust all possible avenues before taking decisions that destabilise peace in the community.kenya@namibiansun.com

Govt opposes external debt collectors

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Namibian Sun 2025-06-09

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Govt opposes external debt collectors

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Namibian Sun 2025-06-09

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