REDFORCE IS HERE: Grootfontein municipality says Redforce will be collecting monies owed by its defaulting clients.
REDFORCE IS HERE: Grootfontein municipality says Redforce will be collecting monies owed by its defaulting clients.

Grootfontein defends Redforce marriage

Municipality 'exhausted all other avenues'
Despite residents' misgivings, the Grootfontein municipality will not end its contract with a debt-collection agency.
Kenya Kambowe
In the wake of communities across the country revolting against local authorities enlisting the services of debt-collecting companies, the Grootfontein municipality says it will not terminate its contract with one. The municipality, which signed a contract with Redforce Debt Management on 5 April, said it has had enough of residents defaulting on their monthly municipal accounts.

The cash-strapped local authority also revealed that it is owed N$213 million.

This is contained in a media release issued last Friday by mayor Talitha Garises in response to various demonstrations and petitions by disgruntled residents who feel that Redforce will make life difficult for those who will be handed over to the debt-collecting company.

In their petition, the residents argued that the local authority should make use of the debt-collecting department within municipal structures instead of a third party.

They went on to accuse the local authority of not consulting the community prior to appointing Redforce.

“Redforce has the potential to prey on individuals in dire financial circumstances, charging exorbitant fees for services that are often available for free or at a much lower cost through normal municipal debt-collection channels,” the petition read.

“Instead of offering sustainable solutions to debt problems, the Grootfontein municipality is pushing the community into repayment plans that will prolong their financial hardship or even worsen their debt burden in the long run.”

Exhausted all avenues

In its statement, the Grootfontein council said it had exhausted all possible avenues to get defaulting clients to pay their dues.

“Council encouraged and pleaded with residents, businesses and institutions to engage the finance department with the purpose of making financial arrangements towards settling outstanding debt as well as to avoid disconnection of municipal services. This humble request [has] seemingly fallen on deaf ears, while the disconnection of services resulted in another demonstration and petition. The current internal debt-management strategy has not yielded the desired results and, consequently, the debt has risen to N$213 million by March,” Garises wrote.

“It is against this background that the council resolved to procure the services of a debt collector,” she said.

Garises further explained that only accounts that are in arrears for 60 days will be handed over to Redforce.

“Residents with outstanding debts and who have signed a written agreement with the finance department shall not be handed over to Redforce,” she said.

“No additional interest shall be added on the outstanding debt account handed over to Redforce. No houses and properties shall be repossessed [and] no disconnection of municipal services shall be effected on senior citizens and vulnerable community members,” she said.

[email protected]

Comments

Namibian Sun 2024-10-06

No comments have been left on this article

Please login to leave a comment

Premier League: Everton 0 vs 0 Newcastle | West Ham 4 vs 1 Ipswich Town | Manchester City 3 vs 2 Fulham | Leicester City 1 vs 0 Bournemouth | Brentford 5 vs 3 Wolves | Arsenal 3 vs 1 Southampton | Crystal Palace 0 vs 1 Liverpool LaLiga: Real Madrid 2 vs 0 Villarreal | Real Valladolid 1 vs 2 Rayo Vallecano | Las Palmas 0 vs 1 Celta Vigo | Getafe 1 vs 1 Osasuna | Espanyol 2 vs 1 Mallorca | Leganés 0 vs 0 Valencia SerieA: Inter Milan 3 vs 2 Torino | Atalanta 5 vs 1 Genoa | Udinese 1 vs 0 Lecce | Hellas Verona 2 vs 1 Venezia | Napoli 3 vs 1 Como European Championships Qualifying: West Bromwich Albion 0 vs 0 Millwall FC | Watford 2 vs 1 Middlesbrough | Swansea City 0 vs 0 Stoke City | Sheffield United 2 vs 0 Luton Town | Plymouth Argyle 2 vs 1 Blackburn Rovers | Derby County 2 vs 0 Queens Park Rangers | Coventry City 1 vs 2 Sheffield Wednesday | Portsmouth 1 vs 1 Oxford United | Norwich City 4 vs 0 Hull City | Burnley 0 vs 0 Preston North End | Sunderland 2 vs 2 Leeds United English Championship: West Bromwich Albion 0 vs 0 Millwall FC | Watford 2 vs 1 Middlesbrough | Swansea City 0 vs 0 Stoke City | Sheffield United 2 vs 0 Luton Town | Plymouth Argyle 2 vs 1 Blackburn Rovers | Derby County 2 vs 0 Queens Park Rangers | Coventry City 1 vs 2 Sheffield Wednesday | Portsmouth 1 vs 1 Oxford United | Norwich City 4 vs 0 Hull City | Burnley 0 vs 0 Preston North End | Sunderland 2 vs 2 Leeds United Loading... Currency: GBP to NAD 22.88 | EUR to NAD 19.17 | CNY to NAD 2.49 | USD to NAD 17.48 | DZD to NAD 0.13 | AOA to NAD 0.02 | BWP to NAD 1.28 | EGP to NAD 0.35 | KES to NAD 0.13 | NGN to NAD 0.01 | ZMW to NAD 0.65 | ZWL to NAD 0.04 | BRL to NAD 3.19 | RUB to NAD 0.18 | INR to NAD 0.21 | USD to DZD 132.61 | USD to AOA 910 | USD to BWP 13.21 | USD to EGP 48.29 | USD to KES 128.5 | USD to NGN 1656.86 | USD to ZAR 17.48 | USD to ZMW 26.4 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1868.17 Down -0.05% | Casablanca Stock Exchange (CSE) MASI 14167.03 Up +0.09% | Egyptian Exchange (EGX) 30 Index 31720.5 Up +1.24% | Botswana Stock Exchange (BSE) DCI 9661.12 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 653.84/OZ DOWN -0.0008 | Copper US$ 4.54/lb UP +0.38% | Zinc US$ 3 189.00/T DOWN -0.06% | Brent Crude Oil US$ 78.66/BBP UP +0.23% | Platinum US$ 988.89/OZ DOWN -0.0035 Loading...