Officials in the eThekwini Municipality, who have been exposed by the Auditor-General for racking up R1.5 billion in irregular expenditure and who have failed to spend R122m in national government funding to improve neighbourhoods, want ratepayers to foot the R16,000 a day bill to host meetings at the exclusive Pencil Club in uMhlanga.
The Pencil Club is the latest ‘’it spot’’ where the city's elite meet for expensive shots of whiskey and puff on Cuban cigars at a members-only venue that overlooks multi-million rand properties and has majestic sea views.
This week, ANC councillors in the economic development and planning committee cluster approved a request by deputy city manager Lihle Phewa, supply chain acting head Similo Mbonwe, chief financial officer Sandile Mnguni, and city manager Musa Mbele to use the Pencil Club as a meeting venue.
According to the motivation for approval that was put to the committee this week, officials want to use the Pencil Club for ‘’strategic meetings’’ with potential investors who are used to an international standard.
This is despite the fact that the city manages state-of-the-art meeting venues at Moses Mabhida Stadium, the International Convention Centre, and meeting venues rich in history at the city hall.
The members-only establishment at the Pencil Club is expected to cost an exorbitant R16,000 per day for access and R8,000 for half-day access.
The lavish amenities planned for the club include premium whiskey and cigars, creating an aura of opulence and exclusivity.
The move has caused outrage in the halls of city hall, with opposition parties uniting in opposing it.
They argue that such extravagant spending is inappropriate and reflects a disregard for the pressing needs of ordinary citizens. With South Africa grappling with numerous socio-economic challenges, including high unemployment rates and a struggling economy, the idea of spending large sums of money on a private club has been met with widespread condemnation.
Detractors point out that the ANC should prioritise addressing the country's pressing issues rather than indulging in luxury. They argue that instead of spending exorbitant amounts on an elite club, resources should be channelled towards improving public services, creating job opportunities, and uplifting marginalised communities.
DA councillor Sakhile Mngadi said they were ‘’disgusted’’ by the approval of the request.
‘’While the DA does not have an issue with the Pencil Club, however, the offering of corporate packages to a maximum of three members at R194,999, given the financial constraints the city faces, is a slap in the face of every ratepayer in the city,’’ Mngadi said.
‘’It was pleasing to see other political parties join the DA's position to reject this item, which will clearly become another avenue for the ANC to butter up its donors ahead of the elections at the cost to ratepayers. Arguments given about the inability for the city and Deputy City Manager Lihle Phewa to host meetings elsewhere whilst the city has access to city hall, ICC and Moses Mabhida venues do not hold water.
‘’They are an insult to the millions the city already spends to uphold relationships with other conferencing venues! The DA will be lobbying council members to reject this item if it gets to full council and ensure every cent is spent improving the city's crumbling infrastructure and providing quality basic services,’’ he said.
Visvin Reddy, the African Democratic Change councillor, called the approval ‘’shocking and unbelievable’’.
‘’What is even more preposterous is the fact that the ANC has seen fit to support such a proposal. As ADeC, we will object strongly in full council and call on all parties to do the same. It seems that the ANC is totally oblivious to the real causes of disinvestment in the city. These include urban decay, crime, lawlessness and unemployment. Sitting in the Pencil Club won't change that. Secondly, ratepayers are being tortured in eThekwini with exorbitant tariffs and pathetic service delivery. This proposal to hire the Pencil Club is a kick in the teeth for ratepayers,’’ he said.
IOL