Administrators of the Walvis Bay Municipality say negotiations with Red Force will commence following the official termination of the contract on Wednesday.

Red Force, however, says the latest development is disturbing and comical because it violates the agreement between the two parties.

Over the past four weeks, Walvis Bay residents and all local authority councillors have ganged up on Red Force, which was appointed six months ago to collect more than N$300 million owed by residents in outstanding water debts.

The National Planning Commission's Director General, Obeth Kandjoze, has confirmed to nbc News that the allegations made public by AR Activist Dr Job Amupanda about the terms being negotiated by the government with a German company, HYPHEN, which won the Hydrogen Tender, are true.

But Kandjoze was also quick to point out that those terms are still drafts and negotiations are at an infant stage.