RedForce demands N$9m for Rundu divorce
RedForce Debt Management is suing the Rundu town council for over N$9 million after the local authority terminated a contract between the two parties.
This is according to papers filed in the Windhoek High Court this week, in which RedForce said it lost an expected income estimated at N$9.2 million due to the termination of the contract this month, 10 months before the agreement was supposed to come to end.
RedForce has a two-part claim, of which one amounts to N$5.1 million - the revenue the company said it could have made from collecting debt if the contract ended in December.
The second claim, N$4.1 million, is what RedForce said it could have made from collecting data.
“As a result of the repudiation of the agreement by the defendant [Rundu town council], the plaintiff [RedForce] has lost income for the period 1 March 2023 to 31 December 2023,” court papers read.
The town council informed the debt collector of its intention to terminate the contract in January, while two weeks later, the company retorted with its own termination.
Pay up
Earlier week, Namibian Sun reported that RedForce decided to terminate the contract because it was allegedly unhappy with how the local authority had been conducting itself, citing interference from council staff and councillors who sabotaged its efforts.
On its part, the town council chose to terminate the agreement because RedForce failed meet its monthly N$5 million target.
Namibian Sun understands RedForce was only able to meet its target once - in January 2021.
Rundu town council appointed RedForce on a three-year contract in October 2020 to collect debt worth over N$450 million owed by town residents.
Prior to its appointment, the cash-strapped council regularly faced water interruptions because it was unable to pay NamWater.
Since RedForce took over, these water interruptions became a thing of the past.
Council CEO Olavi Nathanael this week said debt collection will now revert back to council, while urging residents to pay their dues.
“If residents don’t pay on their own, we will be forced to go back into the market and search for another debt collector,” he said.
[email protected]
This is according to papers filed in the Windhoek High Court this week, in which RedForce said it lost an expected income estimated at N$9.2 million due to the termination of the contract this month, 10 months before the agreement was supposed to come to end.
RedForce has a two-part claim, of which one amounts to N$5.1 million - the revenue the company said it could have made from collecting debt if the contract ended in December.
The second claim, N$4.1 million, is what RedForce said it could have made from collecting data.
“As a result of the repudiation of the agreement by the defendant [Rundu town council], the plaintiff [RedForce] has lost income for the period 1 March 2023 to 31 December 2023,” court papers read.
The town council informed the debt collector of its intention to terminate the contract in January, while two weeks later, the company retorted with its own termination.
Pay up
Earlier week, Namibian Sun reported that RedForce decided to terminate the contract because it was allegedly unhappy with how the local authority had been conducting itself, citing interference from council staff and councillors who sabotaged its efforts.
On its part, the town council chose to terminate the agreement because RedForce failed meet its monthly N$5 million target.
Namibian Sun understands RedForce was only able to meet its target once - in January 2021.
Rundu town council appointed RedForce on a three-year contract in October 2020 to collect debt worth over N$450 million owed by town residents.
Prior to its appointment, the cash-strapped council regularly faced water interruptions because it was unable to pay NamWater.
Since RedForce took over, these water interruptions became a thing of the past.
Council CEO Olavi Nathanael this week said debt collection will now revert back to council, while urging residents to pay their dues.
“If residents don’t pay on their own, we will be forced to go back into the market and search for another debt collector,” he said.
[email protected]
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