RedForce was ‘most advantageous’ bidder, TransNamib says
RedForce to recover N$48 million for rail operator
TransNamib says RedForce was appointed following a competitive procurement process.
Following public outcry over TransNamib’s decision to appoint RedForce Debt Management to recover its debt of approximately N$48 million, the state-owned enterprise has clarified that the appointment was made in accordance with the law and that all processes were above board.
In a statement, TransNamib clarified that there was no wrongdoing in selecting RedForce as the company responsible for recovering the millions owed by defaulting stakeholders.
The contract between RedForce and TransNamib is valid for 12 months.
In the statement, TransNamib also denied claims made in a daily newspaper this week that RedForce was hand-picked for the task.
“TransNamib is aware of the concerns raised by the media regarding the awarding of this bid, and we want to address these issues in a transparent way,” the statement reads.
Strategic initiative
The company confirmed that RedForce has been awarded a one-year contract to collect past-due accounts from clients and tenants of properties that are 60 days or older.
Direct contact with the identified debtors will be the focus of the collection efforts, which started on 1 April, the statement notes.
“This engagement is a strategic financial initiative – to assist our continuous efforts to improve our financial situation and increase revenue collection. A competitive procurement process was followed in accordance with the procurement process for this appointment," the company states.
“Allegations that RedForce was hand-picked are misleading and false. There is a documented process and evidence that are in compliance with the technical and financial evaluation criteria, and RedForce was determined to be the most advantageous bidder versus other bidders.”
TransNamib said the company is dedicated “to accountability and transparency, and the winning bid was awarded equitably and in compliance with the established procedure.”
Further, it noted that the debtors book handed over for collection amounts to around N$48 million.
"It should be noted that the cost of collection by RedForce will be borne by the debtor as a penalty for default and not by TransNamib," the statement added.
NACC verdict
RedForce, which currently holds debt-collection contracts with Katima Mulilo, Grootfontein, Okahandja, Ondangwa, Windhoek, Henties Bay and Walvis Bay as well as a number of companies, was recently cleared of any wrongdoing by the Namibian Competition Commission (NaCC).
The NaCC concluded that RedForce’s contracts were beyond reproach, despite 139 similar firms being registered with the Business and Intellectual Property Authority (Bipa).
After reviewing submissions, the commission determined that the awarding of debt collection tenders by local authorities was transparent and adhered to legal frameworks.
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In a statement, TransNamib clarified that there was no wrongdoing in selecting RedForce as the company responsible for recovering the millions owed by defaulting stakeholders.
The contract between RedForce and TransNamib is valid for 12 months.
In the statement, TransNamib also denied claims made in a daily newspaper this week that RedForce was hand-picked for the task.
“TransNamib is aware of the concerns raised by the media regarding the awarding of this bid, and we want to address these issues in a transparent way,” the statement reads.
Strategic initiative
The company confirmed that RedForce has been awarded a one-year contract to collect past-due accounts from clients and tenants of properties that are 60 days or older.
Direct contact with the identified debtors will be the focus of the collection efforts, which started on 1 April, the statement notes.
“This engagement is a strategic financial initiative – to assist our continuous efforts to improve our financial situation and increase revenue collection. A competitive procurement process was followed in accordance with the procurement process for this appointment," the company states.
“Allegations that RedForce was hand-picked are misleading and false. There is a documented process and evidence that are in compliance with the technical and financial evaluation criteria, and RedForce was determined to be the most advantageous bidder versus other bidders.”
TransNamib said the company is dedicated “to accountability and transparency, and the winning bid was awarded equitably and in compliance with the established procedure.”
Further, it noted that the debtors book handed over for collection amounts to around N$48 million.
"It should be noted that the cost of collection by RedForce will be borne by the debtor as a penalty for default and not by TransNamib," the statement added.
NACC verdict
RedForce, which currently holds debt-collection contracts with Katima Mulilo, Grootfontein, Okahandja, Ondangwa, Windhoek, Henties Bay and Walvis Bay as well as a number of companies, was recently cleared of any wrongdoing by the Namibian Competition Commission (NaCC).
The NaCC concluded that RedForce’s contracts were beyond reproach, despite 139 similar firms being registered with the Business and Intellectual Property Authority (Bipa).
After reviewing submissions, the commission determined that the awarding of debt collection tenders by local authorities was transparent and adhered to legal frameworks.
[email protected]
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