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BUSINESS NEWS - 27 February 2024, Knysna. Grey Elephant Investments (GEI) wishes to address harmful claims concerning our rates accounts and clarify misconceptions regarding our lease agreement with Knysna Municipality.
GEI underscores that there is no unlawful debt owed to the Knysna Municipality, and there was no extraordinary debt write-off. Assertions to the contrary are electioneering misinformation and defamatory.
PAIA request outcomes evidenced that GEI was being billed incorrectly and differently to comparable businesses.
GEI followed the Knysna Municipality prescribed formal dispute process concluding in GEI’s accounts being reviewed and corrected to remedy over charges of approximately R400 000,00 per month which we had disputed since 2019.
With the unfortunate turnover of municipal managers and CFOs this process was delayed for years.
In October 2022 GEI succeeded in a High Court interdict application against Knysna Municipality to force them to act in terms of their policy.
Subsequently GEI’s proposed settlement of the rates dispute was unanimously agreed by Knysna Municipality’s Council on 31 July 2023.
Thereon followed an internal due diligence review of the corrections and proper basis for future billing. This review concluded successfully in November 2023 with the valued impartial and expert assistance of a representative on secondment from National Treasury.
The rates dispute concerned rectifying errors. A write-off of a portion of the arrears was applied only after this, to the corrected amount, and again expressly in accordance with the applicable by-law and policies.
Notably, the portion written off is consistent with—and in most cases less than—the proportions and absolute amounts written off for other ratepayers.
GEI followed all lawful processes, and we look forward to receiving the corrected statements and new accounts for payment.
Regarding the lease: on 12 December 2023 GEI entered into a three-year lease agreement with Knysna Municipality for new offices and client service space at Knysna Mall pursuant to their Council’s resolution on 26 October 2023.
We assure all concerned stakeholders that the lease agreement was awarded through lawful and transparent processes. The lease agreement and settlement of the rates dispute are not connected or related in any way.
The new lease entails substantial benefits and savings for the Knysna Municipality and its ratepayers such as:
- Load shedding proof 3,250m2 Grade-A, new custom fit-out, fit-for-purpose offices and client service space.
- The rental is R 546 000,00 per month, R168/m2, inclusive of cleaning and security services and external and lifts maintenance.
- According to figures provided by Knysna Municipality, their monthly rent will decrease by approximately 43% vis-à-vis the smaller 2,911m2, load-shedding exposed expired leases which averaged approximately R240/m2, excluding additional charges imposed for services GEI provides inclusive. This represents a multi-million Rand saving over the three-year term of the lease.
- Improved access for ratepayers stands to enhance revenue collection and further benefits from housing formerly disparate municipal departments under one roof will yield improved efficiency and service.
We value the trust placed in us by the Knysna community and remain steadfast in our dedication to building a stronger, more prosperous Knysna for all.
We urge Knysnarians to exercise discernment and rather let us work together positively with facts and not gossip and rumour that is damaging our unique and wonderful town.
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