We recovered N$1 billion – RedForce boss

… as Windhoek and Walvis Bay residents push back

RedForce Debt Management chief executive Julius Nyamazana says his company has recovered over N$1 billion from 10 local authorities since 2014 as tension rises among Windhoek and Walvis Bay residents.

The agency has been accused of inhumane approaches to debt collecting, robbing defaulters of their dignity.

Its operations are, however, expanding among local authorities in Namibia.

During an interview with Desert Radio yesterday, the agency boss said his company executes its role in a professional manner, and called those who are aggrieved to approach his office.

Nyamazana said his company makes use of local authorities’ existing debt-recovery policies.

He said it has recovered a cumulative N$1 billion from the 10 local authorities so far.

“When we are working with municipalities, we adopt their credit policies, where some account has fallen into arrears, like after not paying for 30 or 60 days, these credit policies say the account shall be disconnected.

“As RedForce, we just adopt these policies and do the disconnection, and the payment arrangements come in after that,” he said.
RedForce Debt Management has faced resistance from Windhoek residents who continue to protest against the company’s contractual engagement with the City of Windhoek.

Nyamazana said RedForce has recovered municipal debt of over N$300 million for the City of Windhoek, of which the debt book has grown to N$1,2 billion in 2022.

“RedForce has a great reputation with municipalities, in particular with the City of Windhoek. We operate within the law. We are not men and women who come with muscle to your house and knock down your door. We work professionally,” Nyamazana said.

‘MAKE ARRANGEMENTS’

He said his company is ethical and welcomed those who feel aggrieved to approach its offices to make arrangements to repay their debt.

He said when an account is handed over to RedForce, the agency informs the client of this, and tries to arrange a repayment plan, but some residents are ignorant and don’t show up.

“The leaders of the Katutura Residents Committee should come and engage us. Our doors are open. They must come and express their grievances,” Nyamazana said.

He said people will always feel aggrieved, however, the agency’s primary goal is to implement debt-collection policies already in place.

“It’s not easy to owe somebody, and on our side it’s not always easy to follow up a debt. We as RedForce encourage people to protest when they feel there is unfairness,” Nyamazana said.

He said it is important for residents to honour their municipal debt, which would in turn help local authorities to develop their community and ensure proper service delivery.

“If we do not collect this debt, municipalities and town councils would be on their knees. Debt collection ensures that local authorities’ coffers are not depleted.

“If no one does this work, local governments would collapse,” he said.

‘NIGHTMARE’

Meanwhile, Shaun Gariseb, the spokesperson of the Katutura Residents Committee, said municipalities should not rely on an external debt collector such as RedForce.

“RedForce is a nightmare. Unpaid bills will continue to be a menace, because the City of Windhoek refuses to consider the circumstances that cause the inability to pay.

“We have proposed mechanisms that they continue to ignore,” he said this week.

Gariseb said the residents are aware of their responsibilities and seek a win-win approach, adding that the municipality seems to have a profit-based approach.

‘SUSTAINABLE APPROACH’

Despite recent protests against RedForce, the City of Windhoek on Monday said it would stick by its decision to use the company’s services.

Deputy Windhoek mayor Joseph Uapingene said the decision was made after they found that their previous debt-collection methods did not yield results.

“The previous debt collection system through external attorneys proved financially troublesome, without guaranteeing results. RedForce’s model, which only charges a 10% fee on actual payments received, is a more sustainable approach for all parties involved,” he said.

He said the contract with RedForce is done in accordance with the municipality’s credit control policy, which is in place to manage the recovery of debts effectively.

The policy outlines the procedures for debt collection, ensuring that all monies owed to the municipality are recovered fairly and systematically.

According to the policy, residential customers can make payment arrangements when their accounts are in arrears, and services such as water or electricity may be disconnected after 30 days of non-payment.

A minimum payment of one third of the account balance is required for reconnection for the first time, and 50% for subsequent disconnections.

The Windhoek municipality started using the services of RedForce on 1 August 2019, and reappointed the agency again on 1 August 2022.

In September last year, the Walvis Bay municipality announced its decision to make use of RedForce to collect municipal debts, which has led to a wave of protests.

‘ENEMY’

Local daily New Era yesterday reported that Walvis Bay residents and councillors have pressured the municipality to sever ties with the company.

Walvis Bay councillor Ephraim Shozi said he would table a motion against the use of the company’s services in the coming weeks.

“RedForce is our enemy. I have no knowledge of how RedForce was appointed, yet I am your leader, and should be accountable to you,” Shozi was quoted as telling residents.

Similar protests against RedForce took place at other towns such as Okahanda and Rundu.