The Grootfontein Municipality says they have on numerous occasions pleaded with residents, businesses, and institutions to engage their finance department and make debt-settling arrangements; calls, the council says, appear to have fallen on deaf ears.

It is against this background that the municipality says it decided to involve an independent debt collector, Redforce Debt Management.

In a media statement, the council responded to the petition submitted last week by residents regarding the appointment of Red Force.

The municipality says they used internal debt management processes, which did not yield the desired results as debts continued to rise to the current amount of N$213 million.

In December last year, the municipality advertised for the services of a debt collection and data recovery agent, with Red Force Debt Management winning the tender.

Deputy Mayor Loyisa Iyambo says while residents want development, they conveniently forget that such developments start with honouring their municipal debts.

"The residents and stakeholders have prioritised the construction of a taxi rank, an open market, a fire station, and refill recreational facilities. The council will not be able to implement any of the above projects. The responsibility is therefore on the residents to honour their financial responsibilities and achieve any of the strategic objectives." 

Iyambo says the municipality customised a unique collection service contract with Red Force in line with its values, vision, and mission as stipulated in its Strategic Plan.

Red Force will not charge interest on outstanding municipal levies and will only deal with accounts in arrears of more than 60 days.

"An example: if you owe the municipality a thousand dollars and you are handed to Redforce, you are only required to settle the outstanding one thousand, explained Iyambo.

Those who signed an agreement with the municipality's financial department will not be handed over to the debt collectors.

Red Force will not repossess houses or properties, as that is not part of their agreement with the Grootfontein Municipality. 

Senior citizens and vulnerable people are also not affected by the agreement.

All councillors of the Grootfontein municipality were present at the media briefing and communicated their being in agreement, contrary to talks that they were divided on the matter.

The Grootfontein municipal council says it will host a community engagement on May 7 to further update the community on the way forward.