SWAKOPMUND – Henties Bay residents can finally breathe a sigh of relief after the town’s municipality ended its contract with debt collection agency RedForce. 

The relationship was marred by court battles and public protests. 

In a statement released on 31 January, the town informed its residents that the contract with RedForce has officially ended as per the terms of their agreement. 

The municipality initially signed an agreement with RedForce in 2022 to help recover millions in unpaid rates and taxes from residents. 

However, following a municipal council resolution on 6 October last year, the municipality decided to terminate the contract due to multiple discrepancies flagged by a consultant. 

That decision was challenged by RedForce, who took the council to court to have it reversed. 

They eventually succeeded in having their contract conserved after the court ruled that the contract should continue and be terminated as per the agreement. 

The contract officially ended on 31 January. 

RedForce said it has collected approximately N$43 million since February 2022. It claims it never received any complaints from the municipality 

“As a result, RedForce will no longer act on behalf of the municipality for debt collection services. All access to municipal systems has been revoked. No further information will be shared with RedForce,” the town’s acting executive officer, Ignasia Florencia Neis, said in a letter. 

Residents and businesses no longer need to engage RedForce on any outstanding municipal bills. 

However, they can approach the town’s revenue department for assistance. 

Henties Bay mayor Lewies Vermaak yesterday told New Era they are relieved that they could finally part ways with RedForce. 

“Our community was really suffering due to the added interest by RedForce. However, it was not us who awarded the contract to them. It was procurement,” he said. 

Vermaak said the added interest rates made things even harder for the community. 

As a way forward, the council wants to look at ways on how they can structure outstanding debt in a way that allows residents to service current and outstanding acconts. 

He appealed to residents to continue paying their bills and make payment arrangements on outstanding debts to ensure their services are not cut off. 

– edeklerk@nepc.com.na