Lepelle-Nkumpi Local Municipality invites bids for the appointment of a debt collection agency for a three-year period. This initiative aims to enhance the municipality’s revenue collection capabilities by recovering outstanding arrear service and sundry charges from both active and inactive ratepayers.
Tender Overview
Tender Number: LNM073/2025/26
Organ of State: Lepelle-Nkumpi Municipality
Province: Limpopo
Closing Date: 08 October 2026 at 11:00
Contract Duration: Three (3) years
No briefing session is scheduled for this tender.
Comprehensive Scope of Work
The appointed agency will handle the full spectrum of debt collection services on an as-and-when-required basis. Key responsibilities include:
- Tracing and Locating Debtors: Identifying residential, business, and farm debtors and obtaining the necessary information for successful recoveries
- Pre-Legal Process: Issuing reminders, demand letters, and final notices, and making personal contact with debtors
- Legal Process: Issuing summonses, obtaining default judgments, blacklisting defaulters, and pursuing emolument and movable asset attachments
- Administrative Process: Maintaining debtor files, tracking account enquiries, and submitting monthly and year-end progress reports
- Payment Arrangements: Negotiating and managing repayment plans, and capturing arrangements on the Solar Financial System
Commission Structure
The contract operates on a “No collection, no pay” commission basis. Bidders must quote a commission percentage inclusive of VAT. Payments are only made upon successful collection and receipt of funds by the municipality.
Mandatory Requirements
Bidders must meet strict eligibility criteria:
- Professional Registration: Proof of registration with the Association of Debt Recovery Agents (ADRA) and/or the Council for Debt Collectors
- Software Capability: Demonstrated ability to interface with the municipality’s Solar Financial System
- CSD Registration: Active registration on the National Treasury Central Supplier Database
- Tax Compliance: Valid SARS Tax Compliance Status Pin
Related opportunity: Mhlontlo Municipality Seeks Legal Services Panel for 3 Years
Evaluation and Preference Points
Bids will be evaluated in three stages. Bidders must score a minimum of 70 points in the functionality evaluation to proceed to the final stage. The 80/20 preference point system applies, with specific goals for black ownership, locality within Lepelle-Nkumpi, women ownership, disability ownership, and youth ownership.
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