SPYL wants Rundu’s Redforce deal terminated
RUNDU – The Swapo Party Youth League (SPYL) in the Kavango East region has called on the Rundu Town Council to terminate its debt collection contract with Redforce Debt Management.
This follows a court case in November last year which declared null and void a decision by minister of urban and rural development Erastus Uutoni to have a contract between Redforce and the Rundu Town Council terminated.
Uutoni on 9 October ordered the council to terminate the contract as the council did not consult his office in terms of the Local Authorities Act before appointing the debt collector.
SPYL regional secretary Anselm Marungu at a press conference on Monday said the town council already has an internal debt collection department and questioned why employees in this department are still employed if their work is now being done by Redforce.
“To charge residents extra fees that will go to Redforce on top of their debt is an injustice to the residents,” he said.
The Rundu Town Council last year appointed Redforce Debt Management to collect debt of over N$200 million owed by government institutions, businesses and residents who are also liable for a collection fee calculated at 12%.
Marungu said a decision of this nature required wide consultation with residents, which allegedly never happened.
The town council’s acting CEO, Sam Nekaro, when contacted for comment said the town council does not have the capacity to follow up on debt owed to it.
Nekaro said he disagrees with how the youth league just runs to the press without making an attempt to consult the town council on these matters.
“When clients are handed over we discontinue the charges on their accounts.
The Rundu Town Council works on a cost-recovery basis. It is not a profit-making organisation,” Nekaro said.
He said last year Redforce collected a little over N$3 million. - Nampa