RedForce will no longer act on behalf of the municipality for debt collection services

After years of controversy and financial strain, the Henties Bay Municipality has officially cut ties with debt collection agency RedForce. The decision, finalized on 31 January 2025, follows a series of legal battles and public discontent over the agency’s handling of overdue municipal rates and taxes.

The partnership, initiated in 2022, was intended to recover millions in outstanding debts. However, discrepancies identified by a consultant led the municipal council to pass a resolution on 6 October last year to terminate the contract. RedForce challenged this move in court and initially secured a ruling to maintain the contract, but it has now reached its end.

RedForce reported that it had collected approximately N$43 million during its tenure and maintained that no formal complaints were raised against its operations.

“With immediate effect, RedForce will no longer act on behalf of the municipality for debt collection services. All access to municipal systems has been revoked, and no further information will be shared with RedForce,” confirmed acting executive officer Ignasia Florencia Neis.

Henties Bay Mayor Lewies Vermaak acknowledged the hardships caused by additional interest charges, stating, “Our community was really suffering due to the added interest by RedForce. However, the contract was awarded through the procurement process, not by us.”

As the municipality moves forward, officials are expected to implement new strategies to manage outstanding debts more effectively while avoiding similar conflicts in the future. Residents now hope for a more transparent and fair approach to municipal debt recovery.