Katima ‘not bound’ by Sankwasa’s RedForce ban, CEO says

The Katima Mulilo Town Council says it will not comply with a directive by urban and rural development minister Sankwasa James Sankwasa banning the use of RedForce Debt Management, insisting the instruction lacks legal standing and infringes on procurement laws.Earlier this week, Sankwasa ordered all local authorities to cut ties with RedForce and avoid entering into new agreements with the debt collector. The move follows a surge of public outcry and demonstrations over the company's debt recovery tactics, described as aggressive by some ratepayers. But Katima Mulilo CEO Raphael Liswaniso said his council will not comply with what he termed an “unlawful” instruction.“I saw the directive, but it falls short of being lawful. We can only implement something legal,” Liswaniso told Namibian Sun. “We are not bound by that instruction.”Legal conflictLiswaniso contends that the directive contradicts the Public Procurement Act, which assigns procurement responsibilities to accounting officers, procurement committees and the Central Procurement Board of Namibia – not to political office-bearers.“If a directive conflicts with existing legislation, then that directive has no legal effect,” he said. “The minister of finance is the only one empowered to issue procurement directives under our current legal framework.”Liswaniso added that it would have been more appropriate for the ministry to issue a broader policy stance on debt collection rather than targeting a single company.“If the minister had said local authorities should stop using debt collectors altogether, that would be a policy position. But singling out one service provider raises serious legal and reputational concerns," he warned.Contract to continueDespite rising political pressure, Liswaniso confirmed that the council's existing contract with RedForce will continue uninterrupted.“Whether I’m still in office or not when that contract ends, the law must be followed,” he stressed.RedForce has been subject to growing criticism across the country, with residents accusing the company of slapping customers with excessive penalties, cutting off essential services like water and electricity and showing little leniency to struggling households.In Windhoek, Rehoboth, Walvis Bay, Otjiwarongo and other towns, ratepayers have taken to the streets, demanding that local authorities sever ties with the debt collection firm. Recently, Windhoek residents issued a 48-hour ultimatum to the municipality to terminate RedForce’s services, describing the company’s practices as “exploitative and undignified”.N$1 billion recoveredFor its part, RedForce has defended its actions, saying it operates strictly within the terms of its contracts and that those criticising its methods are typically defaulters.The company claims to have recovered more than N$1 billion on behalf of local authorities since its establishment – a figure that underscores its impact but also reflects growing tensions between councils and the communities they serve.

Katima ‘not bound’ by Sankwasa’s RedForce ban, CEO says

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Namibian Sun 2025-08-06

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Katima ‘not bound’ by Sankwasa’s RedForce ban, CEO says

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Namibian Sun 2025-08-06

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