Is this yet another tender blunder by Johnny Douglas?

Oil and water – that’s how compatible Knysna municipal manager Johnny Douglas and the Senza restaurant tender seem to be. Not only was he accused of not following procedure during the previous nine-year lease, but it seems like he’s made another big boo-boo with the new one too.

This time, the tender signed by Douglas was advertised for a 20-year lease agreement, but according to the official records of a council resolution, only a nine-year lease has actually been approved.

“The leasing of Erf 1406, Knysna is advertised for request for proposal for the lease and development for a period of nine years in terms of the municipal supply chain management regulations and Knysna municipal supply chain management policy,” states a council resolution dated 28 September 2017.

Several attempts to seek clarity on the issue from Douglas were unsuccessful this week. Douglas promised comment but at the time of going to print none was received.

This is not the first time Douglas finds himself being asked questions regarding the Senza tender.

According to ratepayer association committee member Susan Campbell, there were previously millions of rands in loss suffered by the municipality as a result of unpaid debt accrued by Senza Restaurant, which she claims could be a direct result of negligence on the part of high-ranking municipal officials, including Douglas.

Campbell states that documents in her possession indicate how, under Douglas’ watch as municipal manager, the cession (transfer of rights) of lease agreements were signed without following procedures stipulated in the contract, without the consent of council and in contravention of relevant procurement legislation.

“No financial information was provided, no tax clearance certificate was provided, procurement legislation was not complied with and the permission of council was not obtained,” states Campbell, and alleges that Douglas’ conduct contravened the Municipal Finance Management Act in many respects, which in some instances could amount to a financial crime. “Knysna Municipality has incurred significant legal costs with no realistic chance of recovering a cent,” she says. ‘’Whether this is deliberate, due to negligence or just a plain case of ISS (indiscriminate signing syndrome) remains to seen.’’