Windhoek sticks to RedForce

The Windhoek municipality is determined to retain RedForce as its debt collector. No changes will be made to RedForce&#039;s contract or its collection methods. Windhoek deputy mayor Magdalena Lombardt confirmed this decision this week. "No pensioner&#039;s municipal accounts will be handed over to RedForce, and no interest will be charged on accounts of any resident handed over to RedForce, except for the collection fees of 10% of each overdue payment made," she clarified.Cheaper planHowever, Lombardt said the municipality has the full right to suspend the prepaid supply of water and electricity to collect debt."The previous collection process was costly and provided no certainty of any financial benefit to the city or the client."She said that as a result, the appointment of RedForce to collect debt on behalf of the city is considered more financially viable.According to Lombardt, previously the City engaged legal services, where clients&#039; accounts were handed over to law firms."Those accounts that were handed over to external attorneys for judicial collection have caused significant amounts of debt, imposing a remarkable financial burden on the City and its clients as the attorneys demand legal costs, even though they do not collect the debt from the defaulters," she said. RedForce only charges 10% of each overdue payment that a defaulter pays to the Windhoek municipality, according to the deputy mayor. This, she stated, is less than the 20% interest that the city itself annually charges on debt.Collective protestLombardt&#039;s statement follows a protest march last week against the municipality&#039;s debt collection strategies and its use of RedFore.Residents demanded action and also marched to the urban and rural development ministry&#039;s office to give the minister 72 hours to intervene.Meanwhile, the city council is working on a proposal to write off the debts of senior citizens, the deputy mayor said. However, the municipality cannot suspend interest on debt, although pensioners can arrange a repayment plan with a 15% deposit rather than the 33% required by the municipality&#039;s credit management policy, she said.Residents owe the municipality approximately N$1.2 billion on around 68 000 accounts. According to officials from the financial management department, approximately 20 000 pensioners collectively owe about N$255 million.

Windhoek sticks to RedForce

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Namibian Sun 2026-06-18

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Windhoek sticks to RedForce

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Namibian Sun 2026-06-18

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