The Rundu Town Council has backtracked on its intention to terminate its three-year debt collection agreement with RedForce Debt Management Services. 

Rundu Mayor Gabriel Kanyanga was quoted in a local daily newspaper early this month saying the council had resolved to terminate the agreement. 

Kanyanga had cited a breach of the agreement by RedForce, on the advice of the Attorney General, as it failed to meet its five-million-dollar monthly collection target. 

In a media release, however, the council says the agreement remains valid and asks ratepayers to render RedForce all the support it requires. 

This is after RedForce threatened to sue the council if it made good on that council resolution.

The Rundu Town Council-RedForce relationship has not been a smooth one since it came into force about two years ago. 

RedForce first won a High Court ruling overturning Urban and Rural Development Minister Erastus Uutoni's decision to cancel the agreement, as it was signed without his blessing.

A motion was also brought to the council to end the contract but was rejected as it had legal ramifications.

Rundu residents staged several demonstrations in an effort to put pressure on the council to end the agreement, but it stood the test of time.

Rundu Spokesperson Benjamin Makai says the agreement will lapse next year and the town is expected to return to in-house debt management.

Council was owed more than 400 million dollars in rates and taxes, which led to the agreement with the debt collector to recover that money.