Objectives

The primary objective of this tender is to establish a panel of qualified debt collection service providers to assist Gauteng Provincial Government (GPG) Departments and Entities in recovering long-outstanding debts over a period of 36 months. The initiative aims to improve revenue collection, enhance service delivery, promote fiscal sustainability, and ensure compliance with relevant legislation such as the Debt Collectors Act, National Credit Act, and PFMA. Additionally, it seeks to foster financial discipline, reduce instances of non-compliance, and strengthen governance and accountability within GPG.

Scope

The scope encompasses the provision of comprehensive debt collection services across various debt types including:

• Staff debts (employees/ex-employees)
• Student debts (bursary fees)
• Sundry debts (service providers, unspent funds)
• Medical bills and hospital charges
• Rental and asset use fees
• Penalties, interest, breach of contract damages
• Unpaid taxes, penalties, and other miscellaneous debts

The services include soft collection (non-coercive engagement), call center operations, hard collection (legal actions such as court proceedings, attachments, credit bureau listings), and ongoing monitoring and reporting. The panel will serve multiple departments and entities for a fixed term of 36 months.

Technical Requirements

• Establishment of a panel of service providers with proven capacity and experience
• Implementation of ethical debt collection practices compliant with legislation and standards
• Provision of soft collection strategies including debtor engagement, negotiations, and payment plans
• Call center operations with dedicated agents, equipped with software systems capable of activity logging, call recording, debt verification, and dispute management
• Legal and court processes for hard collection, including obtaining judgments, attachments, and credit bureau listings
• Data protection and confidentiality in line with POPIA and other relevant laws
• Regular monitoring, reporting, and documentation of collection activities, progress, and outcomes
• Use of secure, reliable technology platforms for invoice submission, tracking, and communication
• Adherence to procurement and contractual standards, including submission of valid registration, tax compliance, and financial statements

Skills and Experience Requirements

• Organization: Proven experience (minimum 5 years) in debt collection services, with demonstrated capacity to handle large debt portfolios
• Personnel:
  • Account Manager with finance/law/accounting/credit management qualification (minimum NQF Level 6 or higher) and at least 3 years of relevant experience
  • Call Centre Manager with similar qualifications and experience
  • Five (5) call center agents with Matric and accredited call center/customer service training or NQF Level 6+ qualifications, each with at least 1 year of debt collection experience
• Legal and Technical Expertise: Knowledge of relevant legislation (Debt Collectors Act, NCA, PFMA, POPIA), legal procedures for debt recovery, and ethical collection practices
• Technology: Ability to operate and maintain debt management software, call recording systems, and reporting tools
• Compliance: Valid registration with the Debt Collectors Council (CFDC), tax compliance, and registration on the Central Supplier Database (CSD)
• References: Demonstrable track record with at least 3 reference letters from previous clients in debt collection services within the last 5 years
• Financial Stability: Submission of recent financial statements or management accounts