Redforce, Henties clash over new contract termination

Redforce Debt Management is contesting the Henties Bay municipality’s decision to terminate its contract, effective 31 January, arguing that the action violates a "wind-down period" clause of its contract with the local authority. The municipality’s acting CEO Ignasia Neis told Namibian Sun on Wednesday that while the contract was initially set to conclude on 17 January, the transition was extended due to necessary system and software handovers. In an official letter last month, Neis said Redforce would no longer represent the municipality for debt collection purposes. Council advised residents and businesses to avoid any dealings with Redforce regarding outstanding municipal payments.However, in a letter dated 5 February, Redforce formally contested the contract termination, citing a clause stipulating that upon expiration of the contract, the company is entitled to continue debt collection services on a non-exclusive basis for up to 12 months as part of a winding-down period.‘Deceptive narrative’The company argues that the municipality’s issuance of a termination notice on 31 January this year constitutes a misrepresentation of the legal agreement and a violation of the agreed terms.In the legal letter addressed to Neis, Redforce’s attorneys demanded an immediate and unequivocal retraction of the public notice terminating their services, threatening urgent legal action should the municipality fail to comply within 24 hours. The debt collector also accused the municipality of acting in bad faith by creating a "false and deceptive narrative" regarding Redforce’s contractual status.Redforce has additionally requested urgent access to the final age analysis for February and the payment file for January, citing the need to update their records in compliance with the existing contractual framework.The company further claims that despite numerous follow-ups, the municipality has yet to pay for services rendered in November and December 2024. The legal correspondence demands an update on the reason for the delayed payment and an expected timeline for settlement.Furthermore, as a legal dispute between the parties is set to be heard in the Windhoek High Court today, Redforce has vowed to highlight the municipality’s conduct as inconsistent with the principles of honesty, fairness and good faith required by law.Debt recovery disputeFollowing another termination last year, Redforce contended in court that it was informed of the contract’s termination in September 2024, a move it described as unexpected. The municipality listed six reasons for its decision, including Redforce’s alleged underperformance in debt recovery.The company countered that it had successfully recovered approximately N$43 million for the municipality since February 2022 and had not received prior complaints. Redforce also claimed it was led to believe it would have the opportunity to present its case before a final decision was made. However, the termination was enforced before the discussion took place, prompting urgent legal action, Redforce said. The two parties are set to meet in court today for the judgement in the pending court case.

Redforce, Henties clash over new contract termination

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Namibian Sun 2025-11-05

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Redforce, Henties clash over new contract termination

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Namibian Sun 2025-11-05

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