In a directive, Minister Sankwasa instructed the Walvis Bay municipality to adhere to the attorney general's legal opinion regarding its contract with RedForce Debt Management by 30 September 2026. This move comes amid a dispute over RedForce's debt collection fees and water disconnections related to municipal debt. The minister emphasized that the council must act in accordance with the legal opinion to resolve the issue.
The directive follows a High Court order on 3 September, which ruled that the municipality and those acting under its direction must refrain from disconnecting the water supply of Wena Investments. The court also ordered the municipality to pay the applicant's costs. The case was brought to court due to a dispute over the municipality's contract with RedForce Debt Management CC.
Minister Sankwasa stated that the RedForce contract was only signed by the municipality's chief executive and not co-signed as required by Section 31A of the Local Authorities Act. According to the minister, the attorney general found the contract to be flawed due to this omission. The contract's validity has been questioned, and the minister has rejected the argument that the contract was valid because RedForce was awarded the tender through the procurement process.
The minister emphasized that the awarding of a tender and the signing of a contract are two separate processes. He explained that an award letter forms part of the contract, creating intention but not containing the required terms and conditions for a valid contract. The chief executive was authorised to issue an award letter but not to sign the contract without the required co-signature.
Minister Sankwasa also expressed concerns about the additional charges residents face when RedForce collects municipal debt. Residents are being charged the amount they owe the municipality, along with an additional percentage charged by RedForce, effectively being charged double. The minister argued that residents did not have contracts with RedForce, as their agreement for municipal services was with the municipality.
The situation is further complicated by water disconnections, where residents may have paid their municipal bills but not the additional RedForce charge. Minister Sankwasa wants the expenditure linked to the matter recovered from councillors who he believes failed to protect the municipality and residents. He is directing that this unnecessary expenditure be recovered from all councillors who are failing to protect the residents and the government institution.
Minister Sankwasa has questioned why councillors and senior staff members continued defending the RedForce contract despite the attorney general's opinion. This has led him to institute a forensic investigation into the operation of the municipality. The minister's actions aim to address the issues surrounding the RedForce contract and protect the interests of residents and the municipality.
Key points
- The Walvis Bay municipality has been given until 30 September to act on the attorney general's opinion on its contract with RedForce Debt Management.
- The contract's validity has been questioned due to the lack of co-signature by the required authority.
- Minister Sankwasa wants to recover unnecessary expenditure from councillors who failed to protect the municipality and residents.
