ActionSA has filed a PAIA request for a copy of the lease agreement between Knysna Municipality and Grey Elephant Investments where in a move mired in controversy and shrouded in secrecy, Knysna Municipality has commenced moving several of its Departments into the Knysna Mall.
The Knysna Mall, owned by Grey Elephant Investments, is reportedly the largest debtor of Knysna Municipality, with a debt exceeding R50 million.
We are concerned about the fact that part of the municipality’s supply chain regulations prohibits conducting business with a supplier indebted to the municipality.
Requests for a copy of the lease, which was concluded without following any supply chain process and which the Council has agreed to handle as a deviation, have been stonewalled. The response received is that a formal PAIA application needs to be launched.
Therefore, ActionSA has filed a PAIA request with Knysna Municipality to obtain a copy of the lease. We intend to ensure that the ratepayers are informed about how their funds spent, especially considering a reported R540,000.00 per month of public money allegedly going to an entity that owes the municipality over R50 million.
What is not clear is whether the reported lease amount includes or excludes VAT, and what additional charges are being levied for fitting out the premises, levies, contributions to rates and municipal services, diesel for the generator, etc. Furthermore, it’s unclear what commitments have been made in the lease agreement.
Not only is the embattled municipality refusing to provide a copy of the lease, which is a public document, but it has also banned any comments on its Facebook page.
ActionSA will continue to pursue this matter to ensure that the Municipality abides by applicable legislation and that taxpayer funds are not squandered.
ActionSA Files PAIA Request for Access to Knysna Municipality’s Dodgy Lease with Its Largest Municipal Debtor
ActionSA has filed a PAIA request for a copy of the lease agreement between Knysna Municipality and Grey Elephant Investments where in a move mired in controversy and shrouded in secrecy, Knysna Municipality has commenced moving several of its Departments into the Knysna Mall.
The Knysna Mall, owned by Grey Elephant Investments, is reportedly the largest debtor of Knysna Municipality, with a debt exceeding R50 million.
We are concerned about the fact that part of the municipality’s supply chain regulations prohibits conducting business with a supplier indebted to the municipality.
Requests for a copy of the lease, which was concluded without following any supply chain process and which the Council has agreed to handle as a deviation, have been stonewalled. The response received is that a formal PAIA application needs to be launched.
Therefore, ActionSA has filed a PAIA request with Knysna Municipality to obtain a copy of the lease. We intend to ensure that the ratepayers are informed about how their funds spent, especially considering a reported R540,000.00 per month of public money allegedly going to an entity that owes the municipality over R50 million.
What is not clear is whether the reported lease amount includes or excludes VAT, and what additional charges are being levied for fitting out the premises, levies, contributions to rates and municipal services, diesel for the generator, etc. Furthermore, it’s unclear what commitments have been made in the lease agreement.
Not only is the embattled municipality refusing to provide a copy of the lease, which is a public document, but it has also banned any comments on its Facebook page.
ActionSA will continue to pursue this matter to ensure that the Municipality abides by applicable legislation and that taxpayer funds are not squandered.