RedForce in first-round victory over Walvis Bay

A WINDHOEK High Court judge has ordered the Walvis Bay municipality to stop the termination of its contract with RedForce Debt Management, in a first-round victory for the debt collector.

“The continuous implementation of the decision taken by the respondents on 23 April 2024 to terminate the services of [RedForce Debt Management CC] with immediate effect, is hereby stayed pending the final determination of an action to challenge the respondents’ purported termination of the agreement between the parties and [RedForce’s] services and to enforce the terms of the agreement between the parties,” reads the court order issued by judge Thomas Masuku.

The order also notes that RedForce will bring an action to set aside the Walvis Bay Town Council’s decision on 23 April to terminate the services of RedForce with immediate effect.

RedForce named the Walvis Bay Town Council, the municipality’s acting chief executive and town councillor Ephraim Shozi as first, second and third respondents in its application.

Shozi submitted an unopposed motion for the termination of the Walvis Bay Municipality’s contract with RedForce to the town council last week, which culminated in a special council meeting on 23 April.

RedForce has raised an issue about not being invited to that meeting.

The company also said the municipality flouted its own rules as the motion was not submitted to the town council’s management committee for a report to be prepared before it could be implemented.