RedForce blames politicians for stalling debt collection

RedForce Debt Management CEO Julius Nyamazana says the country’s mounting municipal debt woes are a result of political interference and a failure to enforce policies, accusing local leaders of putting political interests ahead of their communities.Nyamazana’s comments follow growing protests from residents of various towns over the debt collection firm&#039;s modus operandi, with some local authorities fighting to cancel their contracts with the company.Speaking at the 21st annual general meeting and conference of the Namibian Association of Local Authorities (Nalao) in Windhoek last Wednesday, Nyamazana highlighted the challenges facing municipalities and regional councils, particularly their failure to align policy enforcement with practical debt recovery strategies.“Many local authorities and councils don’t even read their policies. When I hear councillors campaigning and saying, ‘RedForce must go,’ they are misleading people. Policies clearly state what needs to happen, yet these same leaders fail to follow through on their mandates to collect revenue,” Nyamazana said.Debt collection hinderedHe said political interference undermines debt collection efforts and added that some residents leverage their connections to politicians to avoid paying their municipal bills.“It’s not the pensioner from deep in Katutura complaining about their water being disconnected. It’s influential individuals with access to mayors or CEOs. When RedForce enforces collections, the backlash doesn’t come from the poor, it comes from those who use politics as a shield," he claimed."This is killing our institutions,” he added.Nyamazana also addressed criticism about the need for RedForce’s services despite local authorities having in-house debt management departments. “Someone asked why we have debt management departments yet still require RedForce. The first explanation would be time, focus and workload. Cities are growing, but local authorities aren’t scaling their workforce accordingly. The workload increases, but the staff complement remains stagnant,” he said.&#039;Resistance to change&#039;According to Nyamazana, third-party objectivity is another critical advantage RedForce offers.“There’s a conflict of interest between those who collect debts and those who owe. A third-party service eliminates that conflict and allows for impartiality. Another issue is inefficiencies in billing and collections. In some cases, local governments don’t even have accurate records of properties or their owners, leading to confusion and unpaid debts." Additionally, resistance to change and poor use of technology hinder progress, he said.“Despite these challenges, we must focus on solutions. Debt audits are necessary to identify and prioritise financial obligations. Stakeholder engagement is equally important to educate residents about their responsibilities, such as understanding their bills and payment obligations. Transparency and accountability should be central to partnerships between local authorities and private companies like RedForce,” he added.An essential partner Nyamazana described RedForce as a temporary but essential partner for struggling municipalities, helping them stabilise cash flow and meet financial obligations.“RedForce is here to clean up the mess and leave. We don’t aim to stay forever, but we urge local authorities not to terminate our services prematurely. We’ve seen cases where authorities fire us and then struggle to pay salaries or meet basic commitments,” he said.“Many debtors owe not just one municipality but several institutions, like Telecom or Rundu Town Council. Our database helps track these overlapping accounts, offering invaluable insight for improving debt recovery. This extensive data is invaluable for local authorities aiming to improve debt recovery,” Nyamazana added.nikanor@erongo.com.na

RedForce blames politicians for stalling debt collection

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Namibian Sun 2024-11-26

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RedForce blames politicians for stalling debt collection

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Namibian Sun 2024-11-26

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