RedForce challenges Walvis Bay contract termination

RedForce Debt Management has decided to bring an urgent application in the Windhoek High Court for an order to stop the termination of its contract to collect debts on behalf of the Municipality of Walvis Bay.

This comes in the wake of a decision by Walvis Bay town councillors to opt out of a five-year contract with the debt-collection company which had been in effect for only seven months.

The decision to terminate the contract was taken despite warnings by Municipality of Walvis Bay executives that such a step would see an unsustainable escalation of debt, which would in turn have an impact on the local authority’s income.

In a notice filed at the High Court, RedForce says it wishes to challenge the municipality’s decision and to enforce the terms of the agreement between it and the local authority.

RedForce says it wants the court to stop the municipality from implementing its decision to terminate the contract with the company.

RedForce has named the Walvis Bay Town Council, the municipality’s acting chief executive officer and town councillor Ephraim Shozi as first, second and third respondents in its application.

Shozi submitted an unopposed motion for the termination of the contract with the company last week, which culminated in a special council meeting on 23 April.

RedForce has raised an issue about not being invited to that meeting.

The company also said the municipality flouted its own rules as the motion was not submitted to the town council’s management committee for a report to be prepared before it could be implemented.

Shozi did not answer his phone when called for comment.

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