Walvis Bay Council brings debt collection back in-house
The Walvis Bay Municipal Council has moved to terminate its controversial debt-collection agreement with RedForce Debt Management, bringing the company’s role in collecting municipal debts under renewed scrutiny.
The decision was taken during a special council meeting on 7 October 2026, where a motion presented by Management Committee Chairperson Ephraim Shozi was passed unopposed.
The move follows a directive from Urban and Rural Development Minister James Sankwasa, who ordered the municipality to act on an Attorney General’s opinion concerning the legality of the agreement. Sankwasa has maintained that the contract was not properly executed under Section 31A of the Local Authorities Act.
The dispute over RedForce has been ongoing for several years and has included court proceedings, public protests and complaints from residents over debt-collection practices and additional charges.RedForce has since been formally notified of the termination.
Council resolved to implement the legal and statutory compliance directives relating to what it described as the invalid execution of the RedForce agreement. The Chief Executive Officer was instructed to serve RedForce with formal notice of termination and to ensure that all related external operations and activities cease.
The decision follows concerns raised by Sankwasa about the manner in which the agreement was concluded.
According to the minister, the RedForce contract was signed only by the municipality’s Chief Executive Officer and was not co-signed as required under Section 31A of the Local Authorities Act. Sankwasa directed Mayor John Shimbilinga and Council to act in accordance with the legal opinion before the deadline imposed by his ministry.
Council has now acted on the matter, bringing the current RedForce agreement to an immediate end. As part of the resolution, the municipality’s Credit Control Department must be immediately equipped with the necessary human and technical resources to assume full responsibility for municipal debt recovery.
The Head of Finance has also been instructed to submit a comprehensive internal strategic action plan to the Management Committee within 14 days. The plan must focus on optimising local revenue collection without external intermediaries.
The resolution is to be implemented with immediate effect. The latest development echoes events in 2024, when the municipality previously terminated its agreement with RedForce.
The legal concern cited by the minister centres specifically on the signing requirements contained in Section 31A of the Local Authorities Act. The termination could have significant implications for municipal debt recovery, particularly as the municipality transitions the function back to its internal Credit Control Department.
It also raises questions about the recovery of outstanding municipal debt, the future of existing collection processes and any legal or financial consequences arising from the termination.
The decision comes amid a series of legal and political developments surrounding RedForce, including court proceedings and intervention by the Ministry of Urban and Rural Development. RedForce’s response to the termination and any possible legal action arising from the decision will now be closely watched.
By Rudi Bowe
