RedForce takes Henties Bay to court over contract termination

RedForce Debt Management has taken the Henties Bay municipality to court to prevent the termination of its contract at the coastal town.In its urgent application filed at the High Court in Windhoek, RedForce argues that the municipal council sent a letter to the company on 6 September, providing various reasons for wanting to terminate the agreement.“The sudden nature of this termination was unexpected and caught the applicant off guard,” said Margaret Malambo, the deputy CEO and legal advisor of RedForce, in the company&#039;s legal statement.Malambo further argued that RedForce collected approximately N$43.1 million on behalf of the municipality from February 2022 to September 2024, amounting to about N$1.5 million per month.The municipality allegedly informed RedForce that it had collected less than 30% over two years and had not met the “acceptable standard.”Malambo claims that no expected collection rate was discussed when the agreement with the municipality was signed. She also questioned the source of the information on which the municipality is relying.“I argue that the debt in question is a ‘living’ debt, as services are consumed by residents every month, leading to the accumulation of new debt.“I contend that the decision to terminate the contract is unreasonable because it fails to recognise that the debt is ongoing, with new amounts being added each month,” court documents read.No complaintsRedForce was allegedly informed on 15 October that the termination of its contract had been postponed for one month to allow the parties to meet regarding the issue.Malambo was reportedly under the impression that the company would be given an opportunity to lodge complaints before a final decision was made.“To the applicant’s shock, a letter was sent on 18 October by the first respondent [municipality] confirming the termination of the agreement.”Malambo further asserted that RedForce never received any complaints regarding its compliance with the agreement and that RedForce has allegedly adhered to the agreement at all times.Review, set aside RedForce has asked the court that the decision to terminate the contract be reviewed and set aside and is seeking an interdict to prevent the municipality from terminating the contract until the decision has been reviewed.The parties appeared in court on Wednesday and the case was postponed to 5 November.Although the municipality has not yet filed a responding affidavit, it has already notified the court of its intention to contest the case.– kristien@nmh-hub.com.na

RedForce takes Henties Bay to court over contract termination

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Namibian Sun 2025-05-02

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RedForce takes Henties Bay to court over contract termination

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Namibian Sun 2025-05-02

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