Uapingene defends debt relief, Redforce contract

City of Windhoek deputy mayor Joseph Uapingene has accused the Katutura Residents Committee of "overlooking obligations to pay for consumption, especially when disguised under the guise of advocacy".

The committee has been representing pensioners and residents who have taken issue with the City’s debt-relief programme, which they labelled discriminatory.

The programme allows pensioners to get a 100% write-off on municipal debt and interest incurred until the end of November 2023, while non-pensioners and business owners can get 50% of their interest written off. The committee has taken issue with this disparity.

‘Taking advantage’

Last week, the committee - along with hundreds of pensioners and other Katutura residents - gathered in front of the City's customer care centre in Katutura, protesting what they described as the municipality “misinforming pensioners to take advantage of them”.

The group handed over a petition to Ombudsman Basilius Dyakugha.

Spokesperson Shaun Gariseb said they want the section of the debt-relief initiative that only offers non-pensioners and businesses a 50% interest write-off changed.

"We want the removal of discriminatory conditions that are in contravention of Article 10 of the Namibian Constitution, which speaks to discrimination against economic status. Furthermore, we reject the 50% interest write-off offer and gave reasons why we believe it doesn't make a difference,” he said.

‘Careful consideration’

Uapingene defended the municipality’s decision to continue its contract with Redforce Debt Management.

"One of the persisting issues raised is the call for the City to end the contract with Redforce. It is imperative to note that the decision to appoint Redforce was made after careful consideration of the financial implications for the City and its residents.

“The previous debt-collection system through external attorneys proved financially troublesome without guaranteeing results. Redforce's model, which only charges a 10% fee on actual payments received, is a more sustainable approach for all parties involved. Furthermore, we assured our pensioners and all residents that no interest is charged on accounts managed by Redforce, only a collection fee of 10% on payments made,” Uapingene said on Monday.

He added that pensioners' residential property accounts are not handed over to the debt-collection agency.

Consequences

The deputy mayor added that the consequences of non-payment of municipal dues can include the disconnection of services.

"If an account is not settled by the due date, the electricity supply is subject to disconnection without further notice. To restore the electricity supply, the account holder must pay reconnection fees, and any late fees incurred.

“Non-pensioners and businesses had their interest automatically written off as of 18 March, and this has been reflected on their municipal statement for March," he said.

Uapingene further revealed that so far close to 3 000 pensioners have registered for debt relief.

"The council's decision to write off N$524 million in debt is solely a City initiative, which is also a significant financial relief measure for the community, especially for pensioners and vulnerable residents.

“The initiative reflects a substantial increase from the N$191 million debt relief in 2018, indicating a responsive and adaptive approach to the growing debt book, which reached N$1.2 billion in 2022.

“The automatic 50% interest write-off for non-pensioners and businesses as of 18 March, along with the extended registration for pensioners to 31 May, demonstrates the council's commitment to its vision of being sustainable and caring while being cognisant of sustainable financial management," he added.