Update

KNYSNA NEWS - The dust hasn't settled yet over the alleged "R60 million" Knysna rates dispute with Grey Elephant Investments (GEI), even after council decided last week that GEI pay R10m to settle the dispute.

The DA and Knysna Independent Movement (KIM) are upset, saying a motion to write off debt was allegedly based on a decision by mayor Aubrey Tsengwa.

GEI correspondence from lawyers, on a few occasions since February and revealed in the council agenda, had allegedly pushed Tsengwa and then municipal manager Ombali Phineas Sebola to apparently clarify and bring "harmful and defamatory" allegations about the write-off into the public domain.

Tsengwa said in response to questions from the Knysna-Plett Herald that the municipality "acknowledges" the enquiries "regarding the status of a municipal account holder".

"Council resolved the matter in terms of write-off council credit policy. We wish to clarify that the municipality does not comment on the specifics of individual accounts in the media.

"All municipal accounts are managed in strict accordance with our approved municipal policies, and we will continue to uphold our rights under these policies, including our credit control measures," said Tsengwa.

Figures revealed in council documents on 22 August show GEI is to pay R10m of the total "R60m" listed on municipal books in the rates dispute. A resolution to this effect was accepted at the meeting.

The DA voted against a council proposal to write off a "significant portion of Grey Elephant Investments' (GEI) rate debt which allegedly amounts to between R40 and R60 million".

'Slap in the face'

The DA said the proposal, brought to council and approved by the ANC/PBI/PA/EFF "coalition of corruption" was "a slap in the face to honest ratepayers in the Knysna municipality, and significantly undercuts Knysna's municipal cashflow in an already strained financial environment".

At the same time a motion of no confidence in Tsengwa, brought by KIM, lapsed after an electronic glitch prevented KIM's Susan Campbell from motivating her motion.

Campbell had been following the council meeting virtually, but when it came to KIM's motion, the last item on the agenda, she could not hear the discussions and after receiving a message that the motion was to be called, rushed to the council chambers to be present when the motion was heard.

'Motion had lapsed'

When she arrived, she was informed that the motion had lapsed, as she did not respond when the matter was called.

KIM said in a statement that "despite strong opposition from KIM and the DA, the 'coalition of corruption' (COC) resolved that the conditional resolution, made by council in July last year, that council approves, in principle, the settlement offer submitted by Grey Elephant (Pty) Ltd and Rex Extension (Pty) Ltd, which is subject to internal review" be confirmed as final and be implemented subject to certain conditions.

"In an apparent attempt to go back to the future, council's resolution of December 2023 was rescinded.

"They say that BS baffles brains. Well, we are truly baffled about how the resolution should be implemented by the administration," said KIM's statement.

It said the internal review by the municipality concluded that the billing on the account "adheres strictly to the council's approved policy and tariffs, without any deviations".

"Therefore, the current billing will remain unchanged.

"Instead of administrative justice, the COC's 'removal' of the December resolution and the 'revival' of the July resolution, can only be described as administrative Jenga," said KIM.

'Resolution roulette'

"To aggravate matters, they added some conditional wording, which gives an ambiguous instruction to the administration. The execution thereof will be a game of resolution roulette," said KIM's statement.

Council was informed that the outstanding debt of GEI as of June 30, 2024 apparently amounted to R60,799,399.19.

"The resolution leaves us none the wiser and, to add to the confusion, a number of councillors, who voted for the resolution, afterwards vehemently denied that they voted for a write-off.

"Until the matter comes back to Council to provide clarity and fix it, the R60 million Rand question therefore remains unanswered," KIM added.

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