RedForce Debt Management CC will continue collecting debt for the municipality of Walvis Bay.
The debt-collecting agency’s contract was terminated on 23 April this year, upon which it took the municipality to court.
“The parties have now arrived at an agreement to settle the matter without further legal steps to be taken,” the settlement agreement reads.
The two parties agreed that they “shall endure on the same terms and conditions as if it was never terminated”.
“In the case of any rights that may have been impaired or otherwise adversely affected due to the termination, such rights shall be immediately restored.
“Any future changes or amendments to the agreement shall be discussed and agreed upon by and between the parties in accordance with the terms of the agreement and applicable laws from time to time,” it reads.
Both parties have agreed to continue cooperating in good faith.
RedForce Debt Management CC chief executive Julius Nyamazana says he welcomes the latest developments.
“We have welcomed the settlement agreement and we are happy that we can work cordially together again. Ours is to save the municipality from sinking into unsustainable debt and to encourage residents to manage their municipal debts better,” he says.
Part of the agreement is that Walvis Bay has to issue a public apology within five days of the court order made on Friday for accusing RedForce of fraudulently presenting itself as a more affordable service provider.
The municipality must revoke public statements alleging that the debt collector delivered fraudulent invoices and misrepresented itself as a legal practitioner by charging legal fees.
Walvis Bay mayor Trevino Forbes declined to comment on the settlement agreement.
“I first have to find out what happened. I will consult the CEO and managers and see what happened,” he says.
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