Rudolf Gaiseb
The Walvis Bay Municipality has apologised to RedForce Debt Management over the recent allegations of fraud and misrepresentation against the company.
The High Court of Namibia, in a settlement agreement signed on 10 and 12 September by both parties, stated that both RedForce and the council have
agreed that they will not proceed with action any further and that the matter be removed from the court roll and be regarded as finalised.
In the public letter, the council said, “The Municipality of Walvis Bay hereby wishes to inform the public that the recent allegations of fraud and misrepresentation against RedForce Debt Management are entirely unfounded and factually incorrect. In this respect, the inconvenience experienced by RedForce is regretted. Please be assured that all contractual obligations and rights arising from the agreement between RedForce and the council will continue without interruption.”
The municipality added, “All accounts handed over for collection shall remain with RedForce until they are settled in full. Residents and/or debtors are accordingly advised and in fact required to cooperate with the debt collection process and are assured that all collection methods employed by RedForce are in conformity with the council’s credit control policy.”
In April, RedForce filed an urgent application in the Windhoek High Court to stop the termination of its contract to collect debt owed by ratepayers to the municipality.
The debt collector was contracted for five years in September last year to collect over N$300 million from ratepayers.
However, the appointment resulted in an uproar from the community, who petitioned and called for the cancellation of the contract while questioning the way it was awarded.
As a result, councillor Ephraim Shozi tabled a motion to terminate the contract, leading to Metcalfe Beukes Attorneys being appointed to investigate the awarding of the contract.
This prompted RedForce in turn to approach the High Court to stop their contract from being terminated.
The motion, which was initially passed unopposed, was later withdrawn.
“It is recorded that the parties report that they have, in principle, reached a settlement and require time to conclude settlement terms. They request a postponement,” a court document dated 14 August states.
Both parties were required to file a joint status report on or before 18 September 2024.
Before his withdrawal from the case, advocate Richard Metcalfe revealed that the municipality had allegedly paid approximately N$17 million to RedForce within the first nine months of their agreement.
He also noted that on 22 September last year, RedForce allegedly received N$313 000 and over N$1 million on 13 October 2023, despite not having collected any penny on behalf of the council.
Metcalfe criticised the council’s decision to nullify the motion to terminate RedForce’s contract, arguing that it undermined the ongoing investigation.
He maintained that the appointment of RedForce was not in accordance with the law and expressed concern that the council was condoning potential legislative contraventions.