Minister interferes in debt management

The minister of urban and rural development, Erastus Uutoni, has directed the Rundu Town Council to cancel its agreement with the Red Force Debt Management company as there was no ministerial approval pertaining to the agreement.

The council appointed the debt collection firm in August with efforts to collect data and debts owed by government institutions, businesses and residents through unpaid water bills, rates and taxes.

Uutoni, at a meeting with the executives of the council on Wednesday, said the agreement should be terminated because it was not approved by his office nor seen by the Attorney General who advises government on contractual issues and memorandums of understanding (MoUs).

‘GET YOUR HOUSE IN ORDER’

Uutoni told the council to first put its affairs in order by establishing proper communication structures that will enable it to effectively communicate with its residents and other stakeholders on planned activities.

“You want to collect debt but you have not put your house in order. Debt collecting measures are putting the residents under pressure and we cannot insist on something that is damaging,” said the minister.

He said the council should be innovative and look at other ways and means to generate income and not only depend on rates and taxes from residents.

The Rundu Town Council entered into a three-year contract with the debt management company to collect about N$200 million owed to it.

The acting chief executive officer of the council, Sam Nekaro, said there was a council resolution taken in November last year to engage the services of a debt collector. - Nampa