Walvis Bay backed RedForce before U-turn

The Walvis Bay municipal council had previously resolved to retain RedForce Debt Management after receiving legal advice that its contract remained valid, more than a year before moving to terminate the agreement last month. The High Court ruled in favour of RedForce on Monday, granting the company interim protection against the council's decision to terminate its five-year debt-collection agreement.The municipality and its chief executive officer were also reportedly ordered to pay RedForce's legal costs, including the fees of two instructed legal practitioners.Court documents filed by RedForce reveal that the council considered advice from the attorney general on 24 June 2025 and decided to continue implementing the agreement, despite concerns about irregularities in its execution.According to RedForce's founding affidavit, the attorney general's opinion, dated 22 May 2025, concluded that the contract remained valid notwithstanding concerns about the authority of the municipal officials who signed it.The council nevertheless resolved on 7 October to terminate the agreement with immediate effect, prompting RedForce to challenge the decision in the High Court.In its founding affidavit, RedForce's chief administration and human resources officer, Selma Ndagwedapo Nangombe, argued that the municipality had acted unlawfully, disregarded contractual notice requirements and failed to give the company an opportunity to respond before terminating the agreement.The company maintained that its agreement remained legally binding and that the municipality could not terminate it merely by adopting a council resolution.Earlier legal adviceRedForce's affidavit states that the council considered the attorney general's advice on 24 June 2025 and resolved to continue implementing the agreement.The company argues that the municipality subsequently reversed its position without establishing circumstances that justified immediate termination.The agreement originated from a public procurement process in 2023, following which RedForce was appointed to recover outstanding municipal debts over five years.Under the arrangement, RedForce was entitled to a 12% commission plus value-added tax on successful recoveries, together with fees for specified additional services.According to the affidavit, the company was handling 5 502 municipal debtor accounts with outstanding balances totalling N$221.29 million.First attemptThe October resolution was not the first time the municipality had attempted to end its relationship with RedForce.According to the affidavit, the council previously moved to terminate the agreement in April 2024, resulting in legal proceedings that were settled in September of that year.Under the settlement, the municipality rescinded its earlier termination decision and agreed to continue the contractual relationship.RedForce relies on that settlement as part of its argument that the municipality could not disregard its contractual commitments without following lawful procedures.Nangombe argued that the municipality's decision threatened an established debt-collection operation employing 29 people in Walvis Bay, with monthly salary commitments of N$590 452.78.The company says it had invested in the personnel, equipment and systems necessary to carry out its obligations and that an abrupt withdrawal of its mandate would disrupt existing debt-collection arrangements.Ministerial interventionThe latest confrontation followed a directive issued by urban and rural development minister James Sankwasa on 10 September, questioning the legality of the agreement and raising concerns about debt-collection charges and alleged improper financial involvement by municipal officials.RedForce disputed the allegations and questioned the minister's authority to dictate the outcome of the municipality's contractual relationship.The company approached the High Court on 28 September. That application was heard the following day, with judgment reserved for 20 October.However, before that judgment was delivered, the municipality held a special council meeting on 7 October and resolved to terminate the RedForce contract immediately.The council also directed its credit control department to take over debt collection, instructed management to prepare a new debt-collection strategy within 14 days and ordered a forensic audit of the agreement.It further resolved to stop expenditure on external debt-collection services.

Walvis Bay backed RedForce before U-turn

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Namibian Sun 2026-10-21

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Walvis Bay backed RedForce before U-turn

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Namibian Sun 2026-10-21

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