Redforce takes Grootfontein out of the red
• Finances ‘gradually stabilising’
Acting CEO Indileni Lungameni says Redforce's intervention has ensured the municipality can now pay salaries on time as well as meet other financial obligations.
Since the appointment of Redforce eight months ago, the financial position of the Grootfontein municipality, which had previously struggled to pay creditors and salaries, has seen a notable improvement.
This is according to the municipality’s acting CEO, Indileni Lungameni, who told Namibian Sun this week that the local authority’s finances have taken a positive turn since the appointment of Redforce.
“The financial position changed. It's now about eight months since we appointed Redforce, and our finances have significantly improved and that can also be attributed to the appointment of the Redforce. When they came on board, we managed to pay off most of our debts to our creditors,” Lungameni confirmed.
"Gradually, we have seen our finances stabilising. We are not yet at the positions where we want to be, but we are moving there. With the current strategies, we are moving in the right direction.”
Grootfontein signed a five-year contract with Redforce on 5 April 2024 after all other avenues to recover over N$213 million owed by residents and stakeholders had been exhausted.
The debt-collection company was expected to commence operations in May, but due to backlash from the community, the contract was initially placed on hold.
Prior to the appointment of Redforce, the Grootfontein municipality could not pay its creditors and suppliers.
The local authority’s finances were in serious trouble, which allegedly resulted in employees not being paid their salaries on time.
To the rescue
A source within the council claimed that council had to resort to disconnecting the water supply to the defence ministry's army base – one of the municipality’s largest clients – and were allegedly defaulting on their monthly payments.
“Before, we were forced to cut off the supply of water to the army base around the 20th of each month so that we could compel them to pay. Once that payment came in, we were then able to pay salaries and some of our creditors, but now things have changed,” the source claimed in an interview with Namibian Sun.
“Redforce really rescued our situation. We had a client who owed us about N$28 000 and when we used to engage him, he was in denial, but when Redforce engaged him, that money was paid in two days.
“The community is on board, and hence this year we have decided that with the money we are getting, we are implementing projects and providing the necessary services to our residents".
When asked how much Redforce is raking in for council every month, Lungameni could not shed light on the amount but stated that council is able to pay its creditors on time and that council receives 100% of their monthly bill.
“I'm not in a position to give the figures right now, but I can tell you that what happened after we appointed Redforce [is that] all the debts have been paid. All the third parties are now being paid on time, which is your pension, your Namra, etc. Salaries are also now paid on time. So maybe those are the facts that you can state,” Lungameni said.
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This is according to the municipality’s acting CEO, Indileni Lungameni, who told Namibian Sun this week that the local authority’s finances have taken a positive turn since the appointment of Redforce.
“The financial position changed. It's now about eight months since we appointed Redforce, and our finances have significantly improved and that can also be attributed to the appointment of the Redforce. When they came on board, we managed to pay off most of our debts to our creditors,” Lungameni confirmed.
"Gradually, we have seen our finances stabilising. We are not yet at the positions where we want to be, but we are moving there. With the current strategies, we are moving in the right direction.”
Grootfontein signed a five-year contract with Redforce on 5 April 2024 after all other avenues to recover over N$213 million owed by residents and stakeholders had been exhausted.
The debt-collection company was expected to commence operations in May, but due to backlash from the community, the contract was initially placed on hold.
Prior to the appointment of Redforce, the Grootfontein municipality could not pay its creditors and suppliers.
The local authority’s finances were in serious trouble, which allegedly resulted in employees not being paid their salaries on time.
To the rescue
A source within the council claimed that council had to resort to disconnecting the water supply to the defence ministry's army base – one of the municipality’s largest clients – and were allegedly defaulting on their monthly payments.
“Before, we were forced to cut off the supply of water to the army base around the 20th of each month so that we could compel them to pay. Once that payment came in, we were then able to pay salaries and some of our creditors, but now things have changed,” the source claimed in an interview with Namibian Sun.
“Redforce really rescued our situation. We had a client who owed us about N$28 000 and when we used to engage him, he was in denial, but when Redforce engaged him, that money was paid in two days.
“The community is on board, and hence this year we have decided that with the money we are getting, we are implementing projects and providing the necessary services to our residents".
When asked how much Redforce is raking in for council every month, Lungameni could not shed light on the amount but stated that council is able to pay its creditors on time and that council receives 100% of their monthly bill.
“I'm not in a position to give the figures right now, but I can tell you that what happened after we appointed Redforce [is that] all the debts have been paid. All the third parties are now being paid on time, which is your pension, your Namra, etc. Salaries are also now paid on time. So maybe those are the facts that you can state,” Lungameni said.
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