The Katima Mulilo Town Council has enlisted the services of Redforce Debt Collection to assist in collecting the soaring N$145 million debt owed to it by the residents in water, land, rates and taxes.
Redforce is contracted for five years and is expected to recover 100 percent outstanding debt.
Approximately 80 percent of residents are defaulters, out of a total of 7200 ratepayers inclusive of residential and businesses. “At the moment we do not have a definite number of indebted households as we are still busy sorting and enlisting them, but certainly they are over 3000. This includes those with outstanding amounts on land, water as well as rates and taxes,” said KMTC chief executive officer Raphael Liswaniso in a brief telephonic interview.
Liswaniso said, the day where residents were enjoying benefits from the council without paying and draining council resources and impeding development and service delivery are over. “We will not let residents enjoy the fruits at the expense of council, therefore Redforce is the to collect whatever is due and with interest to be paid by the clients,” he vowed.
Explaining the agreement, Liswaniso said Redforce is contracted on commission basis for a five year term starting on 1 July. “Residents are further advised that services for all handed over accounts shall be suspended during the period that the account is with RedForce, until such a time that it is settled or payment arrangements have been concluded,” read a notice issued to residents. Residents are required to pay into a designated council account when doing payments.
Katima Mulilo Town Council has been under fire in recent years for deteriorating poor service delivery, stretching from dilapidated sewerage system, water cuts, potholed roads, lack of land development among many others.