As firm fights to maintain Henties’ N$54 million debt contracts

Zorena Jantze

MARGARET Malambo, the Chief Executive Officer (CEO) of Redforce Debt Management cc, has stated that debt assortment work, when it pertains to native authorities, includes political interference and that she has seen a development whereby each time elections arrive, Redforce faces resistance and its contracts are terminated with none foundation in any respect.

Malambo made these remarks in an pressing utility introduced forth by Redforce Debt Management cc towards the Council of the Municipality of Henties Bay and the Acting Chief Executive Officer of Henties Bay, by which it seeks a High Court order interdicting the Henties Bay municipal council from terminating its companies.

She added that related political interference, meant to win over votes from residents, was noticed within the Walvis Bay municipality, which, after court docket motion, needed to retract its illegal resolution to terminate Redforce’s companies and challenge an apology.

Malambo stated that, to Redforce’s utter shock, on 18 October 2024, a letter was dispatched by the Council of the Municipality of Henties Bay’s Accounting Officer and Acting CEO, confirming termination of the settlement it had with Henties Bay, efficient 08 October 2024.

In a founding affidavit, Malambo defined that on 02 February 2022, the primary handover of accounts befell.

“The applicant (Redforce) had to collect all debts that were aged 60 days and above. A total of 2,124 accounts were handed over for collection; these accounts were valued at N$54,828,629.87 and were aged 60 days and over. The applicant started collections and there were 2,124 accounts aged 60 days and over. That number has reduced to 1,638 accounts. I submit that the Applicant has collected the total sum of N$43,137,135.70 on behalf of the First Respondent between February 2022 and September 2024—that is roughly N$1.5 million every month in respect of debtors aged 60 days and above,” Malambo stated.

She added that regardless of this progress, a letter dated 6 September 2024 outlined a number of grounds for termination of the settlement between the events. The termination of the contract was, nonetheless, prolonged for one month on 15 October.

Malambo added that, nonetheless, to Redforce’s utter shock, on 18 October 2024, a letter was dispatched confirming termination of the settlement efficient 08 October 2024. The Henties municipal council, citing causes for the termination of the contract, stated that debt restoration of lower than 30% over two years doesn’t meet requirements. The resolution to terminate the settlement was primarily based on an inner assessment carried out by the First Respondent after the dismissal of its former Chief Executive Officer.

Further to this, the CEO stated that Henties municipal council waived the arbitration settlement, and that the High Court has jurisdiction within the circumstances to listen to the dispute.

She additional added that at no level did the respondent ever increase any criticism that Redforce was not performing as required by the settlement, and that it didn’t present the supply of the data or the benchmarks that help the allegation that debt restoration of lower than 30% over two years doesn’t meet acceptable requirements.

“I submit that if the Respondents are not interdicted from proceeding with termination, as they clearly intend to, the Applicant shall suffer irreparable harm because the Applicant has a total of 13 employees who were hired and designated specifically to implement the contract in question. I therefore submit that the only effective remedy is the grant of the interdict that the Applicant seeks,” Malambo stated.