Iuze Mukube 

An application by RedForce Debt Collection CC, in which it claimed that the Rundu Town Council failed to provide necessary support to enable it to meet its contractual obligations under a written agreement between the two, has been dismissed in the Windhoek High Court. 

Judge Orben Sibeya, in his ruling, found that the agreement did not expressly or implicitly require the council to support RedForce in the performance of its obligations. 

The written agreement between the parties directed the debt collection close corporation to collect debts due to the council’s debtors and data from residents of Rundu. 

The council will in turn ensure that the sole mandate of collecting debts aged 60 days and older from its debtors would be undertaken solely by RedForce. 

Additionally, the terms were also that the council would provide support to RedForce to collect outstanding debts. 

The council would also not intentionally jeopardise RedForce on the performance of the debt collection services as per the agreement. 

However, the debt collector claimed that the council acted in a manner that frustrated or disabled it from achieving the objective of the agreement. 

RedForce instituted action against the council for damages allegedly arising from repudiation by the council and sought for N$9.2 million. 

Judge Sibeya dismissed the N$9.2 million claim by RedForce, stating that the municipality did not unlawfully terminate a debt collection agreement between the parties. 

He ruled that the debt collector failed to meet the monthly collection target of N$5 million, which was central to the agreement. 

He stated that this failure constituted a material breach, and on this basis, the agreement could be terminated by the council. 

He found that RedForce failed to establish also that the council demonstrated a deliberate intention by word or conduct to resile from the agreement, and to no longer be bound by it. 

He added that the depth of the matter is that there was consistent failure by RedForce to meet its monthly collection target and when this was brought to its attention by the council, it turned around and claimed that the council repudiated the agreement. 

The matter stems from a notification by the Council that the agreement would be terminated on 14 February 2023 for RedForce failing to meet the monthly collection target. 

The debt collector argued that the monthly target was only due by 28 February 2023, rendering the notice wrongful and irregular. 

It claimed damages, arguing that the council allegedly intentionally sabotaged it from fulfilling the terms of the agreement. 

RedForce also claimed that faulty water meters provided incorrect readings to residents of Rundu, and that the council supplied inaccurate geographical mapping and incorrect data, including account numbers that did not correspond. 

Judge stated that RedForce failed to prove that the council failed to support it to achieve the objective of the agreement. 

He stated that the parties were only required to assist each other in order to achieve the objectives of the agreement. 

The Council was represented by Wilhelm Amukoto and RedForce by Tinashe Chibwana. 

–mukubeiuze@gmail.com