Katutura residents recently petitioned the City of Windhoek to do away with debt collector Redforce as it put a burden on their debts.
The residents also demand the City urgently instal prepaid water meters.
In a letter dated 5 April this year, residents complained that they have been struggling to settle arrears of their accounts after being affected by Covid-19, they want the council to end its relationship with Redforce.
The committee expressed concerns with the way Red Force was appointed as the City’s debt collector, which appears not to be transparent.
“The City must furnish details on the process through which Redforce was engaged and who the company’s directors are.
This will clear the air surrounding questions regarding the relationship between the City and the company,” they demanded.
The City of Windhoek hired Redforce Debt Management to collect outstanding debt for services like water and electricity.
Recently, the City announced it is owed N$1.2 billion and Redforce is expected to collect it.
Of concern to residents with outstanding payments is that all fees will have to be borne by the defaulting customer rather than the City.
The City’s spokesperson Harold Akwenye said they are not in a position to fire Redforce as the company has a valid contract.
“We have signed a contract with Redforce and that contract is still valid for the next two years or so. My advice to those defaulters is that prioritise the City of Windhoek and pay your accounts. Don’t go pay other accounts first and come cry at the City of Windhoek,” he said.
“The collection fee is paid by customers. There are no costs to the City of Windhoek,” Akwenye said.
On the water meters, Akwenye said prepaid meters are available and applications are open to all customers.
“All customers are free to come and apply for the prepaid water meters. It is readily available,” he said.