R2,6m ‘irregular’ airport payment to be probed

PLETTENBERG BAY NEWS - Bitou Council has referred a case of irregular expenditure of more than R2,6m in respect of the Plett Airport to the municipal public accounts committee (MPAC) for further investigation.

The resolution was made at a special council meeting on Wednesday 30 July, where both Municipal Manager Mbulelo Memani and Mayor Jessica Kamkam noted the tabled report. MPAC are to report back to council within 30 days.

In the background to last week’s resolution, Memani indicated that during the special council meeting held on 28 June 2024, Council resolved to seek an external legal opinion on the Plettenberg Bay Airport business and long-term lease arrangements.

The illegal expenditure comprised the subsequent contracting of Boqwana Burns Inc. and Advocate CLH Harms in 2024 to provide legal advice and draft a service level agreement and a long-term lease agreement that would align with the tender specifications in respect of the airport. It was considered a matter of urgency at the time, as the Civil Aviation Authority (CAA) had suspended the airport operating licence.

Based on the urgency, the payment of R2 697 181.80 was recommended by corporate services director Luvuyo Loliwe in December 2024.

Airport matter
The report on contracting the legal entities was tabled at a council meeting on 30 July. In it, Municipal Manager Mbulelo Memani said in May this year, he requested the director of corporate services to provide the details of the process followed by the legal services section for the appointment of the said attorneys. The details provided pointed to the fact that the engagement and payment of these services were done without following an appropriate municipal supply chain management (SCM) process, according to the tabled report.

No evidence could be provided that:

• Any procurement process was followed

• A deviation was initiated and approved by the (then) municipal manager as required under Section 36 of the municipal SCM Policy.

“It should be noted that the municipality did not have a valid legal panel contract in place at the time of appointment, yet it does not justify the fact that no procurement process as alluded to above was followed," read the report.

"The payment was processed as a direct payment from the operational budget under legal services, without the necessary SCM compliance documentation or purchase order being processed.”

As a result, the R2.6m payment is "regarded as irregular and will be reported as such in the register of irregular expenditure and the annual financial statements”.

Concerns
The Plettenberg Bay Ratepayers Association has raised significant concerns regarding alleged fraudulent practices involving certain law firms, which have been suspected of overcharging and misdirecting funds to key officials within the municipality.

Steve Pattinson, Ratepayers chairperson, said these troubling practices have persisted for too long, raising questions about the integrity of our municipal operations and the proper stewardship of taxpayer funds.

“We have been advocating for transparency and accountability, and it is with a sense of relief that we acknowledge the municipality's commitment to address these serious allegations. We are delighted that action is finally being taken after a prolonged period of awareness regarding these issues. The Ratepayers Association stands ready to support any efforts aimed at ensuring justice and restoring trust within our community,” said Pattinson.

The council on Wednesday additionally called for a progress report “on all irregular [municipal] expenditure, along with a detailed action plan”, to be submitted to the council in August.

Council also asked for a feedback report detailing the outcomes and recommendations of the disciplinary board on all cases and matters referred to it.Plettenberg Bay Ratepayers Association chairperson Steve Pattinson. Photo: Chris van Gass