Justicia Shipena
Urban and rural development minister James Sankwasa has directed all municipalities and town councils not to renew or enter into agreements with Redforce Debt Collectors.
Sankwasa said Redforce has caused economic and political problems for residents in areas where it operates.
“It has been noticed that some municipalities and town councils have contracted Redforce Debt Collector Company to collect debts on their behalf from residents and businesses,” he said in a directive dated Monday.
He instructed that existing contracts must be allowed to lapse.
“This ministerial directive should be adhered to without fail, since it has a very negative effect on our citizens,” he said.
Sankwasa also told municipalities and town councils that have not signed contracts with Redforce not to do so.
Communities across the country have raised complaints against the company’s debt recovery methods.
In the Zambezi region, residents accused Redforce of cutting off water and electricity services, affecting vulnerable households.
In Windhoek, residents staged several demonstrations and said the company charged high collection fees and used aggressive methods that increased household debt.
Similar issues were reported in Oshakati and Rundu, where business owners and pensioners said they were left without basic services due to unresolved arrears.
Redforce has been contracted by several local authorities to recover unpaid municipal debts.
