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KNYSNA NEWS - The controversial tourism deal between Knysna Municipality and the official tourism trade and investment agency for Cape Town and the Western Cape, Wesgro, was signed by Western Cape minister of economic opportunities Alan Winde on 23 October, but still many niggling questions remain as to the legality of the deal, or service level agreement (SLA) as it is known.
In past months Knysna-Plett Herald (KPH) reported on the many objections to the signing of the SLA, as the most vocal opponents thereto – the Knysna Ratepayers' Association – said any deal would be invalid if certain municipal processes were not followed. It was more specifically Section 76 and 78 of the Municipal Systems Act that were brought into question.
On 16 August, KPH reported that Knysna mayor Mark Willemse said, in lieu of the Wesgro deal being signed, it would be up to acting municipal manager Johnny Douglas to finalise the SLA with Wesgro, and that the heavily disputed Section 76 and 78 process – reported on previously by KPH as not having been taken into account – would be undertaken simultaneously.
That was more than two months ago.
Now, with the deal signed by Winde last week, Wesgro will be receiving R13-million over the next three years to, among others, market Knysna as a destination. "Wesgro will be responsible for the delivery of tourism promotion services only on behalf of Knysna Municipality, and will work closely with the local economic development (LED) department of the municipality to ensure better collaboration between tourism development and promotion," said a statement released by the municipality.
'Outcome predetermined?'
This is where the problem comes in, according to Knysna activist Susan Campbell. "The Section 76 and 78 process was supposed to run before the SLA was signed, not after. It is hard to escape the conclusion that the outcome of the process has been predetermined and it begs the question why the municipality is wasting public money on paying consultants to run the process when they have already decided to enter into a three-year agreement with Wesgro," Campbell said.
Western Cape minister of economic opportunities Alan Winde (left) and Knysna mayor Mark Willemse share a smile while signing the deal with Wesgro. Photo: Stefan Goosen
A week before the signing of the SLA the municipality placed a notice in local media, inviting tenders to be submitted for someone to conduct the Section 76 and 78 process on the municipality's behalf. "But this should have been done long before the deal was signed," Campbell reiterated.
Winde, on 23 October before the official signing, when asked why this tender was only placed a week before the SLA was to be signed, he said he was the wrong person to ask.
"I have no idea why the tender was only put out now," he told KPH, and following subsequent questions relating to the matter which he could also not answer, he asked Willemse to respond.
"This process will determine if Wesgro is the right way to go for tourism," Willemse said. When questioned about the legality of running the Section 76 and 78 process parallel with the signing of the SLA – as Willemse then said it would be done – he said that all legal input received by the municipality indicated it was legal to continue in this way.
According to Willemse, a clause has been written into the SLA that would allow the deal to be cancelled and all expenses refunded should Wesgro be found not to be the best choice for Knysna's tourism industry. Willemse added that if the process was to run before the deal was signed it could take up to six months to be completed, but that it would "hold up the economy of the town".
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