Rundu turns to Red Force

KENYA KAMBOWERUNDUIn an attempt to recover N$200 million owed by defaulters, the cash-strapped Rundu town council has appointed Red Force Debt Management to do its debt collection for the next three years.This was confirmed by Rundu's interim administrator, Sebastian Kantema. He told Namibian Sun that Red Force Debt Management would start with its work as soon as the proposed agreement is given the green light by the line ministry. “According to our memorandum of understanding, the council has appointed Red Force Debt Collection for a period of 1 095 days, which is renewable,” Kantema said. Kantema said the council was owed more than N$200 million by customers who defaulted on their municipal accounts.In fact, Namibian Sun last month exposed how defaulters in Rundu's 11 suburbs owe the council N$45 million for water alone, with the highest defaulter owing N$432 000. Cash-strappedFor years the council's financial troubles have been making headlines. The local authority cannot afford to buy new vehicles or provide effective service delivery.With over N$100 million owed to NamWater, the town council has been unable to settle its water debt over the years.About a year ago, the council was unable to pay its staff due to the poor revenue collection. Aggressive approachAccording to an advertisement on the appointment of the debt collector, the council states that the appointment of Red Force Debt Management is part of an aggressive approach to recover money owed by defaulters.“The Rundu town council wishes to inform the residents of Rundu and the entire public that it has appointed Red Force Debt Management as part of its aggressive efforts to recover debts owed to it by businesses, state-owned enterprises, government institutions and private residents,” it reads.“All accounts that have been defaulted payments for more than three months and beyond will be handed over for collection to Red Force Debt Management effective 1 September 2020.“Once handed over, debtors are encouraged to engage Red Force for payment arrangements and all incidental matters pertaining thereto.” All payments will be made directly to the council though. Defaulters will be liable for collection fees calculated at 12%, which must be paid to Red Force Debt Management.Residents are therefore warned to settle their municipal accounts to avoid losing their homes, having their services disconnected, and facing legal processes.

Rundu turns to Red Force

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Namibian Sun 2025-04-04

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Rundu turns to Red Force

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Namibian Sun 2025-04-04

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