Keetmans Municipality gets serious about debt collection

06 Apr 2017 15:10pm
KEETMANSHOOP, 06 APR (NAMPA) – The Keetmanshoop Municipality on Thursday announced the appointment of a debt collection agency to recover outstanding monies of N.dollars 60 million owed to it by the town’s residents.
Chief Executive Officer Desmond Basson said the municipality awarded a two-year debt collection contract to Red Force Debt Management on 05 April 2017 following a tender process.
“The company will be running an office in Keetmanshoop as from 01 May 2017 and we invite all inhabitants with outstanding amounts to make arrangements to settle their accounts,” Basson said.
Senior Manager for Finance, Quinton Visagie said the collective debt has been accruing, with interest, over a number of years for services rendered.
The services are water provision, refuse removal, sewer management, rates and taxes and land rentals.
Visagie said the debt collector will be paid on a commission basis.
Red Force Chief Executive Officer Julius Nyamazana said his company looked forward to assisting the municipality in the mammoth undertaking of recovering the millions of dollars.
He said it is important to collect the debt as it will allow the municipality to deliver quality service once more money is available.
“The company is not here to harass people or take their property, we are here to mediate between the residents and the municipality to improve the latter’s cash flow,” Nyamazana said.
He said there might be considerations for debt of elderly people to be written off, provided it is approved by the Ministry of Urban and Rural Development.
“We might also consider writing off the debt of those who inherited houses and debt after discussions with such parties,” Nyamazana said.
He however said those failing to honour their payment agreements while they are able to do so will face drastic measures such as water disconnections and court challenges.
He urged defaulters to cooperate during the period of collection.