Martin Endjala
The Landless People’s Movement’s (LPM) councillor of the Walvis Bay municipality, Ryan Gordon, has raised concerns regarding the settlement agreement between the municipality and RedForce Debt Management.
He questioned the legality of the 12% levy on RedForce collections, arguing that neither the municipality’s credit control policy nor gazetted documents reflect it.
He requested this in a letter dated 20 September. The letter was seen by the Windhoek Observer.
“We have noted Advocate Metcalfe describing the councillors as corrupt because illegal tariffs are imposed on municipality customers by the 12% levy imposed on Redforce collections. Please show me where this levy is gazetted,” Gordon questioned.
He claims that there is no provision in the Credit Control Policy for what the municipality’s finance department and Redforce are doing.
“Who authorised you to settle the case with Redforce on embarrassing terms with the municipality?” Why are we apologising for telling the truth? Please give me a copy of the Council Resolution to appoint Redforce,” said Gordon.
He also requested a copy of the Council Resolution authorising the CEO to sign a Settlement Agreement allowing a contractor to receive payments exceeding N$20 million.
In a letter dated 26 September to Gordon, also seen by the Windhoek Observer, the municipality’s chief executive officer, Victoria Kapenda, said the council has deemed the termination of RedForce’s services illegal, effectively reversing the decision.
“To nullify a decision or procedure means to declare that it is not legally valid and therefore not enforceable, and by virtue of the council resolution applies to the entire process that came about as a result of the initial council decision that was so nullified. Therefore, the effect of this council resolution was that the matter was regarded in principle as settled,” she said.
Kapenda explained that the council deliberated on the matter at a special council meeting held on 27 June where it adopted a resolution on the matter.
Particularly the progress made and nullified the matter that stems from a meeting decision held on 23 April.
In April, the council decided to terminate the debt collectors’ contract, which then prompted RedForce to apply to the High Court to reverse the decision, citing unprocedural processes undertaken by the council.
The high court then ruled in favour of debt collection and ordered the council to reinstate RedForce to see out its contract as per the agreement between the two parties.
She said that on 14 August, the High Court issued an order requiring the parties to file a joint status report on reaching a settlement before or on 18 September, a decision the court made on 23 September.
However, Kapenda stated that a comprehensive report on all High Court matters will be on the agenda of a management committee scheduled for 22 October before the ordinary council meeting scheduled for 30 October.
“It must be noted that the nullification of the entire process by virtue of a council resolution means that all subsequent actions including the interim report of the investigator at the time have been declared null and void,” she said.
Last week, Kapenda announced that allegations of fraud and misrepresentation against the debt collection agency are unfounded and factually incorrect.
“In this respect, the inconvenience experienced by RedForce is regretted. Please be assured that all contractual obligations and rights arising from the agreement between RedForce and the council will continue without interruption,” she said.
She indicated that all accounts handed over for collection will remain with the debt collector until they are settled in full.
She urged residents to cooperate with debt collection and pay their dues.
The municipality did not respond to follow-up questions on who did the investigation to confirm that the allegations made in the report by lawyer Richard Metcalf earlier this year are unfounded.
