Staff Reporter
DURING an ordinary council meeting, Councillor Joseph Uapingene, the Mayor of Windhoek, restated the council’s position on the petition submitted by the Katutura Residents Committee to maintain the services of Redforce debt collectors. Despite this stance, the Mayor said that the City is currently working on a proposal to write off debt for pensioners and interest for all residents. The mayor however said that this process must be executed with caution to ensure long-term sustainability.
“The City of Windhoek is actively exploring various debt management methods and is bound by legal mandates such as the Prescription Act and interest charges as per the Local Authorities Act. Therefore, the City cannot freeze interest on arrears,” the Mayor said.
Households owned by pensioners in the City of Windhoek (CoW) owe the municipality a total of N$255 million in unpaid rates and taxes.
The outstanding amount is part of the total amount of N$1.2 billion owed by residents to the city.
According to Mayor Uapingene, the council believes that RedForce is the viable option for debt collection on behalf of the city. He emphasized that the city charges 20% per annum on arrears, while Redforce charges only 10% on amounts paid.
Before the appointment of Redforce, clients’ accounts were handed over to attorneys for further debt collection, which proved to be expensive and provided no guarantee of financial benefit to the city or the client. In contrast, Redforce only charges 10% of actual payments received by the council, making it a more financially feasible option.
Uapingene also clarified that no pensioners’ residential property accounts are handed over to RedForce, and that no interest is charged on accounts handed over to Redforce for all residents except for the collection fee of 10% of each payment made.
Uapingene urged the public to familiarize themselves with the relevant amendments. For pensioners’ payment arrangements, the City has decided to charge only a 15% down payment instead of the 33.33% requirement as per the City’s Credit Control Policy.
