Grootfontein clears debt, buys vehicles after contracting Redforce
Grootfontein Municipality’s financial woes have been widely reported
Grootfontein acting CEO Indileni Lungameni says the municipality’s financial position has improved significantly since the appointment of Redforce eight months ago, ending years of instability that saw the local authority struggle to pay creditors and staff salaries.
The improvement has allowed the municipality to purchase new vehicles worth millions, including a brand-new Toyota Fortuner and a front loader, with plans underway to buy tipper trucks later this month.
Lungameni said the municipality no longer owes third parties and that residents are not being harassed by the debt-collecting company since the contract was signed.
He added that the council has resolved to write off bad debts deemed unrecoverable, and that senior citizens are not among those handed over to Redforce.
“The financial situation of council has improved. We do not owe any third parties,” Lungameni said.
Years of financial trouble
For years, Grootfontein Municipality’s financial woes have been widely reported — from delayed salary payments to court cases brought by creditors demanding payment.
According to one councillor, the partnership with Redforce has changed that.
“Redforce has been a blessing to this town of ours. Gone are the days when we used to scratch our heads on how we would solve our financial challenges,” the councillor said.
“We bought a front loader cash this year and even an off-road Toyota Fortuner for the mayor’s office. These vehicles were bought cash since our finance manager is against debts. Salaries are being paid on time, not like before when workers had to be sent memos that salaries would be delayed. Our financial situation is on the right track.”
When asked about urban and rural development minister Sankwasa James Sankwasa’s directive advising local authorities not to renew Redforce contracts, the councillor described it as unfortunate, but noted that Grootfontein’s agreement remains valid for the next four years.
The Redforce deal helped
Grootfontein signed a five-year contract with Redforce on 5 April 2024 after all other attempts to recover over N$213 million owed by residents and stakeholders had failed.
The debt-collection company was meant to start operations in May last year, but the rollout was delayed following backlash from the community.
Before Redforce’s appointment, Grootfontein Municipality could not pay its creditors and suppliers, and employees often went without salaries.
The turnaround, Lungameni says, shows that the town’s finances are “finally on the right track.”
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The improvement has allowed the municipality to purchase new vehicles worth millions, including a brand-new Toyota Fortuner and a front loader, with plans underway to buy tipper trucks later this month.
Lungameni said the municipality no longer owes third parties and that residents are not being harassed by the debt-collecting company since the contract was signed.
He added that the council has resolved to write off bad debts deemed unrecoverable, and that senior citizens are not among those handed over to Redforce.
“The financial situation of council has improved. We do not owe any third parties,” Lungameni said.
Years of financial trouble
For years, Grootfontein Municipality’s financial woes have been widely reported — from delayed salary payments to court cases brought by creditors demanding payment.
According to one councillor, the partnership with Redforce has changed that.
“Redforce has been a blessing to this town of ours. Gone are the days when we used to scratch our heads on how we would solve our financial challenges,” the councillor said.
“We bought a front loader cash this year and even an off-road Toyota Fortuner for the mayor’s office. These vehicles were bought cash since our finance manager is against debts. Salaries are being paid on time, not like before when workers had to be sent memos that salaries would be delayed. Our financial situation is on the right track.”
When asked about urban and rural development minister Sankwasa James Sankwasa’s directive advising local authorities not to renew Redforce contracts, the councillor described it as unfortunate, but noted that Grootfontein’s agreement remains valid for the next four years.
The Redforce deal helped
Grootfontein signed a five-year contract with Redforce on 5 April 2024 after all other attempts to recover over N$213 million owed by residents and stakeholders had failed.
The debt-collection company was meant to start operations in May last year, but the rollout was delayed following backlash from the community.
Before Redforce’s appointment, Grootfontein Municipality could not pay its creditors and suppliers, and employees often went without salaries.
The turnaround, Lungameni says, shows that the town’s finances are “finally on the right track.”
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