PLETTENBERG BAY NEWS – Eyebrows are being raised after Bitou Municipality announced its intention to secure a loan of more than R38m to finance various capital projects. 

One of the biggest objections includes the R30m in interest that the municipality will have to fork out.

Projects to be covered by the loan are storm water upgrades, the construction of a connection between Saringa Road and Ebenezer in New Horizons, pump station upgrades, electricity equipment and infrastructure, lifeguard towers and various other upgrades.

Bitou Municipal Manager Mbulelo Memani said the loan would be repaid bi-annually over a maximum of 10 years at an interest rate of 12,5%. This will equate to an annual repayment of just short of R7m and interest of more than R30m over the loan period.

Memani invited residents to submit written comments or representations to Council in respect of the proposed debt. These must be submitted to Memani's office no later than Tuesday 31 January before 12:00.

The Plettenberg Bay Ratepayers' Association has already submitted their objections.

Its chair, Peter Gaylard, said they had strongly opposed the proposal, especially based on the fact that it would cost R30m to raise R38m. "This is enormously expensive money.

"A loan should be raised for absolutely essential expenditure, of which many of the items on the municipality's list are not," he said.

He stated that one example of this was the proposed lifeguard towers, for which R1,26-million was budgeted. "They could find a sponsor such as an energy drink, cellphone or sunglasses company. Many companies would love to advertise on the beaches of Plettenberg Bay."

He also highlighted another non-essential project - the mast lights on sports fields - which he believes should be funded through sports grants. "Bitou has not reduced spending since August when they announced their insolvency, yet continue to spend extravagantly on employee benefits and other non-essentials, rather than on maintenance and our infrastructure."

Memani said that a special council meeting will be held on 28 February to give consideration to the raising of the long-term loan.

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