PLETTENBERG BAY NEWS - Rumblings around the functioning of the Plett Tourism Association have surfaced again, this time in a list of questions tabled by Ward 5 Councillor Samkele Mangxaba in a recent council meeting.
In an email to Municipal Manager Mbulelo Memani on 24 February, chairperson of the association Bruce Richardson replied to the list of questions in a seven-page response, also listing several pages of expenses.
The questions included, among others, why the association does not appear on the CIPC system, whether the CEO, Patty Butterworth, owns a company that lists Plett Tourism as a client, and whether the association has a conflict of interest policy.
Also questions about the association's expenditure and events it supports.
Richardson explained that the association does not appear on the CIPC (Companies and Intellectual Property Commission) system as it is neither an NGO or NPC, but a voluntary association formed and governed by a constitution.
He said the forming of Plett Tourism Association was driven by Bitou Muni-cipality and was required by Dupre Lombard, the then head of corporate services in the municipality. This happened pre-2019, after the municipality became aware of certain shortcomings of the municipal entity at the time, Bitou Tourism.
According to Richardson, Bitou Tourism "had long been wasteful of municipal resources and dysfunctional and ineffective in attracting tourist arrivals in Plettenberg Bay".
He said the CIPC system is designed for corporate structures, but the association does have a registered trademark, which is recorded "in a different location to a registered company name".
Richardson explained that initially the creation of establishing an NPC was considered, but it was decided to follow the Voluntary Association route. "The difference being that any corporate structure is deemed to be a 'business entity' whereas a voluntary association is a tourism community-based organisation and would not fall under the heading of a 'business entity'."
He said a voluntary association cannot be registered on a system designed for corporate structures and that there are no directors or shareholders of a voluntary association as is the case with an NPC.
"There is therefore no ownership or directors, but a non-profit organisation in perpetuity with a new board voted in every three years (by members) to oversee the conduct of the affairs of the association, in tandem with the Bitou Municipality," said Richardson.
CEO in the crossfire
One of the issues Mangxaba raised was the fact that the association's CEO, Patty Butterworth, owns a company, called Mediaboxx.
Richardson said before Butterworth accepted the CEO position, she was manager of Media, Marketing and Travel Trade Projects and provided services to the association "as part of her business activities". She had several other clients, but since she became CEO, the business (Mediaboxx) has not been accepting work from other clients and is inactive.
The association relies mostly on service providers who get a set monthly "fee" (except for the person providing IT, who invoices the association on a time sheet).
This course of action was decided on by the previous executive chairperson because the association could not afford full-time staff.
He said ongoing Independent Service Provider Agreements have become unavoidable, because Plett Tourism cannot offer permanent full-time positions.
"As chairperson I am on their communication group and am able to monitor their activities and am satisfied that we are getting excellent value for the money paid, which is the key issue," said Richardson. Responding to Mangxaba about conflict of interest, Richardson said the association does have a conflict of interest policy in place for both the permanent staff and independent contractors.
Plett Tourism CEO Patty Butterworth has been brought into the crossfires for her company Mediaboxx.
Other questions
To a question about The Times Plett & Knysna, Richardson answered that it is owned, managed and published by Mac Publishing and not by the Plett Tourism Association. The association advertises in the magazine "in the light of the fact that the magazine is directly related to the area in which the Plettenberg Bay tourism product is sold".
Mangxaba also asked several questions about events and costs organised/authorised/supported by the association. Richardson listed eight such events: the December Streetlight Party, Plett Boxing, Watercourse History Festival, Plett Ocean Festival, Plett Arts Festival, Dr Evil Classic MTB race, Plett Adventure Race Team, and the Mayoral Golf Day (which he said was erroneously listed as an event by auditors).
The Watercourse History Festival was privately organised. This event was approved in the association's proposed 2021/2022 budget and business plan, which highlighted the expenditure.
"Because this was not a Plett Tourism Association anchor event, a formal request from Local Economic Development & Tourism manager Lesley Jacobs was required and received to approve the payment," said Richardson. The event received marketing assistance from the association.
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