The Knysna municipality says it has denied requests for information involving a lease agreement between the municipality and one of its biggest debtors, Grey Elephant Investments (GEI), due to the correct official channels not being utilised among other reasons.
ActionSA announced recently they had filed a Promotion of Access to Information Act (PAIA) application in efforts to have sight of the lease agreement.
This comes after the municipality earlier this year announced that some of their departments had moved into the Knysna Mall after entering into a three-year lease agreement with GEI.
GEI was cited as one of the municipality’s biggest debtors after it was revealed in council meetings that the company allegedly owed the municipality R28 million. The municipality has since confirmed that they agreed to a settlement of R10.2 million as a final settlement to the debt pending the mutual agreement on the billing.
ActionSA’s Julie Seton, said the PAIA application was made after the municipality’s move to the mall which they alleged was “shrouded in secrecy”.
“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.
“We intend to ensure that the ratepayers are informed about how their funds spent, especially considering a reported R540 000 per month of public money allegedly going to an entity that owes the municipality... 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,” said Seton.
Municipal manager, Ombali Sebola, said that they were aware of the PAIA application but that it was denied.
“Regrettably, their application was denied due to the inclusion of a third party in the information requested, as well as the need to comply with the POPIA Act. We have indeed received requests to access the information. Some of these requests were denied primarily for the same reason mentioned above, while others were also denied because the correct official channels were not utilised,” said Sebola.
Seton said they were unaware that the application had been denied but indicated they would appeal.
“They can redact any personal information but this relates to a lease agreement entered into using public money and we have the right to have it. We are of the view that this is a blatant cover-up,” said Seton.
A GEI spokesperson said: “GEI has been subjected to many false and inconsistent allegations regarding alleged outstanding debts. The numbers speculated have ranged wildly in light of the confusion sewn by various parties. Moreover, as confirmed by National Treasury’s representative: we were not lawfully indebted to the municipality, but overcharged extensively and contrary to the applicable by-laws and policies,” the spokesperson said.
Cape Times