PLETTENBERG BAY NEWS – Bitou Council has referred a case of irregular expenditure of over R2,6 million involving Plettenberg Bay Airport to the municipal public accounts committee (MPAC) for further investigation.
The decision was taken during a special council meeting on 30 July, where both Municipal Manager Mbulelo Memani and Mayor Jessica Kamkam noted the tabled report.
MPAC must report back within 30 days.
Memani explained that Council had already resolved at a previous meeting on 28 June 2024 to seek external legal opinion on the airport's business and long-term lease arrangements. The expenditure relates to the contracting of Boqwana Burns Inc. and Advocate CLH Harms to provide legal advice and draft lease agreements in line with tender specifications.
This was done amid urgent concerns, as the Civil Aviation Authority (CAA) had suspended the airport's operating licence. In December 2024, Corporate Services Director Luvuyo Loliwe recommended the R2 697 181.80 payment.
In a report tabled on 30 July, Memani said he had requested details on the appointment process followed by legal services. The information revealed that the engagement and payment of the attorneys were made without following proper municipal supply chain management (SCM) procedures.
No evidence was found that any procurement process was followed, or that a deviation under Section 36 of the SCM Policy was initiated and approved.
"The municipality did not have a valid legal panel contract in place at the time," the report stated, "but this does not justify the lack of procurement process."
The payment was made directly from the operational budget without the required SCM compliance or purchase order.
The R2.6m will now be listed in the register of irregular expenditure and reflected in the annual financial statements.
The Plettenberg Bay Ratepayers Association has welcomed the probe. Chairperson Steve Pattinson said serious concerns remain about alleged fraudulent practices involving law firms and misdirected funds, adding: "We're relieved action is finally being taken."
Council also called for a progress report on all irregular municipal expenditure, and a feedback report from the disciplinary board on all cases referred to it.
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