The Walvis Bay Council has resolved to terminate a contract entered into with Redforce Debt Collectors, who were enlisted by the administration to collect debtors owed to the municipality.
This comes after a motion was submitted by Councillor Ephraim Shozi during a special council meeting held on Tuesday evening, seeking to bring peace, direction and hope for a resolution to the table amidst mounting urgency.
Shozi, supported by four other councillors, highlighted several key points, including the absence of approval or resolution by the members of council regarding the awarding of the contract to Redforce Debt Management CC.
‘A presentation on debt collection was made to the council by Redforce Debt Management on 08 March 2022 and after their presentation, the councilors met and confirmed that we are not in support of implementing the project.
However, the administration went ahead without the blessing of council to advertise the bid for debt collection services,’ Shozi alleged.
He added that the contra
ct was awarded to Redforce for a period of five years, which will force council to make budget allocations for the next five years, while there were no public consultations on the matter, although it has major financial implications for the ratepayers of the town.
Shozi stressed that ratepayers were only informed through media notices about the appointment of Redforce after the contract was signed.
‘We have a Credit Control policy in place which contains details and procedures to be followed for accounts in arrears, but the administration simply ignored implementing the policy, or they failed to advise the council to make improvements in the policy if it was necessary to do so.
What is also disturbing is the fact that Redforce is also performing functions that staff members of the council are appointed to do. The council are paying the staff members monthly salaries while the functions are being performed by Redforce. How fair is this practice to the ratepayers?’ he questioned.
Shozi’s motion therefore co
ncluded with a proposal for immediate action, urging council members to take decisive steps to address the issues at hand and uphold the principles of good governance and accountability.
Residents of Walvis Bay last year owed the municipality N.dollars 384 million.
Source: The Namibia Press Agency