‘Animal Farm’ at Walvis municipality

… As RedForce Debt Management owners default on municipal debts

Debt collector RedForce is being accused of double standards after a recent investigation found that the firm’s owners defaulted on their municipal bills and gave themselves immunity from paying the 12% collection fee it imposes on defaulting residents.

A leaked investigation report by lawyer Richard Metcalfe into the firm’s dealings with the Walvis Bay municipality shows that properties of RedForce’s owners, Julius Nyamazana and Selma Nangombe, at Dolphin Beach at Walvis Bay, were in arrears for at least 60 days before being settled.

Invoices seen by The Namibian show that one of the accounts was in arrears with N$4 200, while the second account was in arrears with N$5 220 in February this year, before they were both settled on 25 April.

“This creates a distinct impression of nepotism and has been vehemently queried by municipal employees on the basis as to why the owners of RedForce are indemnified from the 12% collection commission imposed on other arrears account holders,” Metcalfe wrote in the report.

Metcalfe said the matter is under further investigation.

“RedForce is so arrogant. Pride and prejudice come before a fall,” Metcalfe told The Namibian last week.

Nyamazana did not respond to calls or WhatsApp messages sent to him on Monday.

Katutura Residents Committee spokesperson Shaun Gariseb said this incident speaks to the “unprocedural nature” with which RedForce is operated.

“The nonsense you see in Walvis Bay is the same in Windhoek, that’s why the Windhoek case is with the Anti-Corruption Commission, Namibian Competition Commission and the ombudsman and still they are refusing to cooperate. Such a shame that they can’t even set an example,” Gariseb said.

WALVIS BAY SAGA

RedForce and the Walvis Bay municipality are currently in a legal dispute after the municipality took a decision to terminate its contract with the firm, amid criticism from residents.

As part of his investigation into RedForce’s operations at the Walvis Bay municipality, Metcalfe alleges that RedForce, which is supposed to collect debts after 60 days, is handling accounts after 30 days, according to some managers.

He said this upsets municipal employees, who fear RedForce is unfairly charging fees on accounts not actually in arrears.

“This causes consternation, agitation and despair to clients/residents who labour under an undue additional 12% levy on all monies due to the Municipality of Walvis Bay once they are handed over to RedForce. This dishonesty is a concern shared by all relevant staff members,” Metcalfe said.

Metcalfe envisions that his investigation will be completed on or before 31 July.

Meanwhile, Walvis Bay deputy mayor Saara Mutondoka said the council will receive a notice to convene a meeting to discuss the pressing matters in the report.

“I don’t have the mandate to answer on this matter as this report did not yet serve at council,” Mutondoka said.

According to media reports, councillors at the Walvis Bay municipality suggested that ministerial intervention be obtained to reach consensus on RedForce.

Rural and urban development minister Erastus Uutoni said his ministry is open to hear the concerns raised by the municipality if they are brought to the ministry.

“There was a time I read through the media that the council has appointed a lawyer to carry out an investigation on that specific issue and hope once they are done they will decide what to do further. If they decide to approach the ministry with recommendations, then we wait and see,” Uutoni said.