Grootfontein submits Redforce contract to attorney general for review

Following a petition by residents and the People’s Party Youth League (SPYL) condemning the appointment of Redforce Debt Management, the Grootfontein municipality has sent the contract signed by both parties to the Attorney General’s Office for review.

This was confirmed by acting chief executive Indileni Lungameni, who told The Namibian Sun this week that the contract had been submitted, as well as the council’s motivations for appointing Redforce.

This follows demonstrations and petitions by some disgruntled residents demanding the termination of the contract.

After exhausting all avenues to collect over N213 million in debts owed by residents, the cash-strapped municipality signed a contract with Redforce on April 5. The debt collection company was expected to start operations in May, but due to strong opposition, the local government shelved the contract.

However, according to Lungameni, Redforce will start operating on July 1.

The Red Army of Predators

In a petition, residents expressed fears that Redforce would repossess their properties and make their lives miserable. There were also allegations that residents were not consulted when the company was appointed.

“Redforce may target financially vulnerable individuals and charge exorbitant fees for services that are often available for free or at a much lower cost through normal municipal debt collection channels,” the petition reads.

“Rather than providing a sustainable solution to the debt problem, the Grootfontein municipality is forcing the community to work out a repayment plan that will prolong their financial hardship and even increase their long-term debt burden.”

No additional interest

Grootfontein Mayor Talitha Garisse said in a recent communiqué that only accounts that are 60 days or more in arrears will be referred to Redforce. “Residents who have outstanding debts and have signed a written agreement with the finance department will not be referred to Redforce,” she said.

“No additional interest shall be added to the outstanding debt accounts handed over. No homes and properties shall be repossessed and no municipal services shall be cut off for the elderly and vulnerable community members.”

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