ActionSA has written to the Public Protector, requesting an urgent investigation into maladministration within the Knysna Local Municipality. Our request pertains to potential misconduct by the Municipal Manager, Ombali Sebola, and Councillors affiliated with the ruling coalition (ANC, PA, PBI, and EFF) concerning the alleged misuse of public funds.
Despite continuous appeals from ActionSA, the Western Cape Provincial Government has regrettably failed to place Knysna under administration, allowing malfeasance to persist unabated.
A glaring consequence of this failure is the catalyst behind our Public Protector complaint, where on 28 October 2023, the Municipal Manager tabled a recommendation before Council for the approval of a five-year lease agreement with Grey Elephant Investments (Pty) Ltd for office space. Notably, this sidestepped proper supply chain management procedures, raising serious concerns about the adherence to established policies and regulations.
This decision violates the Municipal Finance Management Act and Supply Chain Management Policies and Regulations. We flagged that the Municipality had not solicited bids for office space since 2020, and Council’s approval of this procurement deviation raises serious concerns as it lacks any justifiable exceptional circumstances.
The Council’s awareness of longstanding office space challenges negates claims of urgency, suggesting a deliberate circumvention of procurement policies driven by mismanagement and dubious intent.
Moreover, the involvement of Grey Elephant Investments raises apparent concerns, as some of its directors have ties to the ANC. We also exposed that the company, operating in Knysna Mall without obvious registration with the Property Practitioners Regulatory Authority, not only collects rent from tenants but also collects pro-rata service charges due to the Municipality from tenants.
Notwithstanding this, it is noteworthy that Grey Elephant Investments stands out as one of the largest debtors to the Knysna Municipality, which is currently grappling with a significant cash crisis. This raises a critical question: How did a debt exceeding R20 million accumulate in the first place, especially when funds for services have already been collected from tenants? Adding to the concern, the administration is discreetly bringing forth an item in committee, proposing to Council the write-off of a substantial amount owed to the Municipality by this debtor.
This constitutes an additional violation of the law, as the Municipality’s own Supply Chain Management Policy explicitly prohibits the Municipality from engaging in business with any entity indebted to the Municipality. We strongly suspect this irregular five-year lease may be the driving force behind the recommendation to write off a substantial sum crucial for the struggling town.
ActionSA remains committed to upholding transparency, accountability, and the principles of good governance and calls on the Public Protector to investigate these allegations promptly. The residents of Knysna deserve answers and assurance that their rates are used responsibly and ethically.
ActionSA Requests Public Protector Investigation into Alleged Maladministration in Knysna Municipality Amidst Concerns Over Irregular Procurement Practices
ActionSA has written to the Public Protector, requesting an urgent investigation into maladministration within the Knysna Local Municipality. Our request pertains to potential misconduct by the Municipal Manager, Ombali Sebola, and Councillors affiliated with the ruling coalition (ANC, PA, PBI, and EFF) concerning the alleged misuse of public funds.
Despite continuous appeals from ActionSA, the Western Cape Provincial Government has regrettably failed to place Knysna under administration, allowing malfeasance to persist unabated.
A glaring consequence of this failure is the catalyst behind our Public Protector complaint, where on 28 October 2023, the Municipal Manager tabled a recommendation before Council for the approval of a five-year lease agreement with Grey Elephant Investments (Pty) Ltd for office space. Notably, this sidestepped proper supply chain management procedures, raising serious concerns about the adherence to established policies and regulations.
This decision violates the Municipal Finance Management Act and Supply Chain Management Policies and Regulations. We flagged that the Municipality had not solicited bids for office space since 2020, and Council’s approval of this procurement deviation raises serious concerns as it lacks any justifiable exceptional circumstances.
The Council’s awareness of longstanding office space challenges negates claims of urgency, suggesting a deliberate circumvention of procurement policies driven by mismanagement and dubious intent.
Moreover, the involvement of Grey Elephant Investments raises apparent concerns, as some of its directors have ties to the ANC. We also exposed that the company, operating in Knysna Mall without obvious registration with the Property Practitioners Regulatory Authority, not only collects rent from tenants but also collects pro-rata service charges due to the Municipality from tenants.
Notwithstanding this, it is noteworthy that Grey Elephant Investments stands out as one of the largest debtors to the Knysna Municipality, which is currently grappling with a significant cash crisis. This raises a critical question: How did a debt exceeding R20 million accumulate in the first place, especially when funds for services have already been collected from tenants? Adding to the concern, the administration is discreetly bringing forth an item in committee, proposing to Council the write-off of a substantial amount owed to the Municipality by this debtor.
This constitutes an additional violation of the law, as the Municipality’s own Supply Chain Management Policy explicitly prohibits the Municipality from engaging in business with any entity indebted to the Municipality. We strongly suspect this irregular five-year lease may be the driving force behind the recommendation to write off a substantial sum crucial for the struggling town.
ActionSA remains committed to upholding transparency, accountability, and the principles of good governance and calls on the Public Protector to investigate these allegations promptly. The residents of Knysna deserve answers and assurance that their rates are used responsibly and ethically.