Doing it for themselves
Gobabis municipality to revert to internal debt collection; residents owe N$51.6 million
09 March 2021 | Government
The municipality currently has a three-year contract with Red Force Debt Management, which is set to expire at the end of this month.
Speaking to the media, Theron said the municipality would handle its own debt collection as of 1 April 2021, adding that policies are currently under review to see how the municipality can meet residents half-way. “We will be looking at the interest accumulated over time, for example, the commission charged on the residents’ accounts by Red Force will fall away as the municipality will handle the debt management itself.”
However, she indicated that residents will still be required to settle their outstanding debts and that it will not be written off, despite this change.
According to municipal public relations officer Frederick Ueitele, the decision made by council was not made based on the failures and successes or effectiveness of the services rendered by Red Force, but rather because council realised that there is a provision in the Local Authority Act, where the municipalities can approach the courts to recover debts without using a third party. “The municipality has realised that they can do most of the things that Red Force was contracted for internally.”
Gobabis residents currently owe the municipality N$51.6 million in unpaid debts. – Nampa