Crucial RedForce Services for Rundu – CEO
RUNDU – Rundu City Council CEO Olavi Nathanael said the goal of raising more revenue than the council currently receives remains crucial, hence the importance of a debt collector.
The Board has used the services of RedForce to collect the debts on its behalf because it lacks the resources to perform the debt collection service itself.
From January to the end of August 2021, the debt collector collected 41,052,076.81 Namibian dollars.
“The need for the services of a debt collector arose because most of the residents did not honor their obligations to the council,” he said.
In September, some residents of Rundu protested that the city council had hired a debt collector. CEO said New era back in the days when locals were inviting RedForce to their city by continually failing, and so they had to look in the mirror to find the culprit.
In a response letter sent to Governor Bonifatius Wakudumo and seen by this reporter yesterday regarding the September protest demands, the board said the debt collection service was contracted out to RedForce because the board does not have sufficient resources to compel debtors to pay what is owed to advice as efforts to collect debts internally were unsuccessful and debts kept piling up. Rundu City Council provides services to its residents, but residents fail to honor their obligations to the council.
The petitioners said city council did not hire residents before considering bringing in a third party. However, the council responded that in fiscal year 2019/2020, the council engaged residents and encouraged them to pay their municipal bills through an amnesty campaign for nine months via local media. . However, this campaign was unsuccessful.
The Council then called on reputable debt collection companies to submit their proposals.
“Rundu City Council placed ads in two local print media, where it informed residents of the appointment of Red Force Debt Management CC as debt collector on behalf of the council,” the office of the Rundu said in response. mayor.
The CEO reiterated that residents
should allow debt collectors to do their job.
âIt is also important to note that the staff structure (organizational chart) is approved by the Minister, taking into account factors such as affordability and the category of council according to Section 3, Schedule 2 of the Local Authorities Act , Law 23 of 1992, as amended, âhe explained.
âThe Council operates on the principle of cost recovery. This means that in order for the council to render effective services to residents, residents must pay for the services rendered by the Rundu City Council. Therefore, services will improve if all residents instill the habit of honoring their obligations with the council on time, ” he noted.
NathanaÃ«l said New era that at the end of November 2021, residents, including institutions, still owed the council more than N $ 300 million. The Council itself, in November 2021, owed NamWater 120 million Namibian dollars.
The petitioners said during their protest that they have yet to see the benefits of RedForce since its launch.
âNothing has improved. In fact, things got even worse because the water is cut off more than ever, âthey accused.
The council, in its response to the governor, reiterated that the factors contributing to water cuts are residents’ failure to meet their obligations to the council, aging infrastructure causing water leaks, as well as as illegal water connection.
âWe therefore encourage all residents of the city to refrain from illegally connecting to water. We further urge residents to pay their bills to council on time and to report any water leaks and / or illegal hook-ups they observe, âthe council replied.