City throws its weight behind Redforce
Windhoek mayor Joseph Uapingene is adamant that Redforce Debt Management, the municipality’s current debt collector, is the most viable option to collect monies owed by ratepayers.
This despite multiple calls from Windhoek residents for the municipality to insource its debt collection.
Windhoek residents owe the municipality over N$1 billion in municipal bills, with almost half of that debt already handed over to Redforce for collection.
Uapingene reiterated the City’s position during an ordinary council meeting last week.
According to him, the municipality charges 20% per annum on arrears, while Redforce charges only 10% on amounts paid.
“Prior to the appointment of Redforce, clients' accounts were handed over to attorneys for further debt collection, which proved to be expensive and provided no guarantee of financial benefit to the City or the client. In contrast, Redforce only charges 10% of actual payments received by the council, making it a more financially feasible option,” he explained.
Long-term sustainability
Uapingene added that no pensioners' residential property accounts will be handed over to Redforce, while no interest is charged on accounts already handed over - except for the collection fee of 10% of each payment made.
He added: “The City is currently working on a proposal to write off debt for pensioners and interest for all residents. However, this process must be executed with caution to ensure long-term sustainability”.
The municipality is exploring various debt-management methods, however, it is bound by legal mandates such as the Prescription Act and interest charges as per the Local Authorities Act, the mayor said.
“Therefore, the City cannot freeze interest on arrears.”
Uapingene urged the public to familiarise themselves with the relevant amendments.
For pensioners' payment arrangements, the municipality has decided to charge only a 15% down payment instead of the 33.33% requirement as per the City's credit control policy,” he added.
Electrification projects
At the meeting, the council also approved a plan to electrify about 4 000 households in Windhoek's informal settlements before 2028.
The five-year electrification plan intends to expand on the previous plan, which ran from 2017 to 2022.
Statistics provided by the municipality indicate that since 2017, it completed 3 515 service connections in the areas of Otjomuise, Havana, Goreagab, One Nation, Okahandja Park, Ongulumbashe, Babylon and Kilimanjaro.
The electrification projects under the 2017-2022 plan were funded by the ministry of urban and rural development and NamPower, with a total capital investment of around N$45 million.
This despite multiple calls from Windhoek residents for the municipality to insource its debt collection.
Windhoek residents owe the municipality over N$1 billion in municipal bills, with almost half of that debt already handed over to Redforce for collection.
Uapingene reiterated the City’s position during an ordinary council meeting last week.
According to him, the municipality charges 20% per annum on arrears, while Redforce charges only 10% on amounts paid.
“Prior to the appointment of Redforce, clients' accounts were handed over to attorneys for further debt collection, which proved to be expensive and provided no guarantee of financial benefit to the City or the client. In contrast, Redforce only charges 10% of actual payments received by the council, making it a more financially feasible option,” he explained.
Long-term sustainability
Uapingene added that no pensioners' residential property accounts will be handed over to Redforce, while no interest is charged on accounts already handed over - except for the collection fee of 10% of each payment made.
He added: “The City is currently working on a proposal to write off debt for pensioners and interest for all residents. However, this process must be executed with caution to ensure long-term sustainability”.
The municipality is exploring various debt-management methods, however, it is bound by legal mandates such as the Prescription Act and interest charges as per the Local Authorities Act, the mayor said.
“Therefore, the City cannot freeze interest on arrears.”
Uapingene urged the public to familiarise themselves with the relevant amendments.
For pensioners' payment arrangements, the municipality has decided to charge only a 15% down payment instead of the 33.33% requirement as per the City's credit control policy,” he added.
Electrification projects
At the meeting, the council also approved a plan to electrify about 4 000 households in Windhoek's informal settlements before 2028.
The five-year electrification plan intends to expand on the previous plan, which ran from 2017 to 2022.
Statistics provided by the municipality indicate that since 2017, it completed 3 515 service connections in the areas of Otjomuise, Havana, Goreagab, One Nation, Okahandja Park, Ongulumbashe, Babylon and Kilimanjaro.
The electrification projects under the 2017-2022 plan were funded by the ministry of urban and rural development and NamPower, with a total capital investment of around N$45 million.
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