Redforce to explain missing targets at Rundu
KENYA KAMBOWE
RUNDU
The Rundu town council last week resolved to summon Redforce Debt Management to explain why the debt collector has not been meeting its target for the past eight months. The date is yet to be finalised.
Redforce, which has a three-year contract with the council to recover about N$450 million owed by residents, is expected to recover N$5 million a month to meet the target.
The last time Redforce managed to reach its target was in February, when it collected N$9 827 129.
Since then, the highest the debt collector has recovered was N$4 872 315 in July.
The lowest amount recovered by Redforce was N$3 361 881 in May.
Despite not meeting its monthly target, the council paid Redforce N$6 157 385 between January and August.
Communication lacking
The planned meeting will be the first with Redforce since new office bearers were elected in last year’s local government election.
Redforce has tried to engage the local authority to agree on how to work together, but these requests were never honoured.
The council invited Redforce CEO Julius Nyamazana to a meeting on 24 August, but the meeting did not take place despite Nyamazana having travelled from Windhoek to Rundu.
This was confirmed by Nyamazana in a letter to the council dated 31 August, in which he expressed disappointment with the council’s conduct regarding the contract.
The letter, addressed to Rundu CEO Olavi Nathanael, took particular aim at the conduct of office-bearers whose public statements were allegedly putting Redforce’s reputation at risk.
Redforce was upset when the council went behind the debt collector’s back and reconnected water supply to a shopping mall with unpaid debts.
Resistance
Besides some councillors not agreeing with the Redforce contract, there have been several protests led by pressure groups this year.
Residents complained that the 12% debt collection fee added onto the accounts handed over to Redforce was too much.
[email protected]
RUNDU
The Rundu town council last week resolved to summon Redforce Debt Management to explain why the debt collector has not been meeting its target for the past eight months. The date is yet to be finalised.
Redforce, which has a three-year contract with the council to recover about N$450 million owed by residents, is expected to recover N$5 million a month to meet the target.
The last time Redforce managed to reach its target was in February, when it collected N$9 827 129.
Since then, the highest the debt collector has recovered was N$4 872 315 in July.
The lowest amount recovered by Redforce was N$3 361 881 in May.
Despite not meeting its monthly target, the council paid Redforce N$6 157 385 between January and August.
Communication lacking
The planned meeting will be the first with Redforce since new office bearers were elected in last year’s local government election.
Redforce has tried to engage the local authority to agree on how to work together, but these requests were never honoured.
The council invited Redforce CEO Julius Nyamazana to a meeting on 24 August, but the meeting did not take place despite Nyamazana having travelled from Windhoek to Rundu.
This was confirmed by Nyamazana in a letter to the council dated 31 August, in which he expressed disappointment with the council’s conduct regarding the contract.
The letter, addressed to Rundu CEO Olavi Nathanael, took particular aim at the conduct of office-bearers whose public statements were allegedly putting Redforce’s reputation at risk.
Redforce was upset when the council went behind the debt collector’s back and reconnected water supply to a shopping mall with unpaid debts.
Resistance
Besides some councillors not agreeing with the Redforce contract, there have been several protests led by pressure groups this year.
Residents complained that the 12% debt collection fee added onto the accounts handed over to Redforce was too much.
[email protected]
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