Allexer Namundjembo
The Namibia Local Business Association, Naloba (NALOBA) cautioned local authorities to thoroughly evaluate the consequences of outsourcing debt collection services.
The association’s president, Erastus Shapumba said in a statement released on Wednesday, following Redforce Debt Management CC’s court victory against the Henties Bay Municipality.
“It is imperative that town councils and chief executive officers critically assess the implications of these investments,” Shapumba said.
He condemned the action of debt collection by local authorities through third parties, describing it as resembling “a new form of colonialism.”
“We, as an organization, refuse to allow such practices to take root in our nation,” he said.
Shapumba called for decisive action to prevent what he sees as a growing economic threat.
“We cannot allow our nation to be undermined by individuals from other countries who have failed to foster meaningful change in their own,” he added.
According to court documents, Redforce was awarded the contract in January 2022 to recover unpaid municipal rates and taxes.
Between February 2022 and September 2024, the company collected over N$43 million. Red Force has been involved in multiple legal disputes with local authorities across the country.
For example, the Walvis Bay Municipality terminated its contract with Redforce on 23 April 23, leading to legal action.
The two parties later settled, agreeing to continue under the same terms and conditions.
Meanwhile, in Windhoek, residents have expressed growing dissatisfaction with Redforce, which is contracted by the City of Windhoek to collect unpaid water and electricity bills.
Many residents claim the company’s tactics are aggressive and have worsened their financial situations.
Some have raised concerns about the lack of transparency surrounding the contract, citing the absence of key documents such as a valid contract, a council resolution, and a notice of award.
