Allegations against Knysna Municipality assessed
The Department of Local Government has confirmed that it has started the process of assessing allegations of fraud, corruption and maladministration in relation to Knysna Municipality.
On 7 July, Knysna-Plett Herald reported that Local Government MEC Anton Bredell had given Knysna Municipality 15 days to respond to all allegations of fraud, corruption, financial maladministration and malpractice within the municipality. This came after Minister Nkosazana Dlamini-Zuma requested Bredell in May to investigate allegations brought by community organisation Knysna United. Bredell requested the municipality to provide information and documentation in order for his office to assess whether there might be reason to believe that the municipality is not fulfilling its statutory obligations and whether any serious malpractice has occurred or is occurring.
Council asks forensic investigation
Responding to Knysna-Plett Herald’s request for an update on Friday last week, the provincial Department of Local Government spokesperson Rowena van Wyk confirmed that the department has started its assessment. “In the interim, the Knysna Council has taken a resolution to request the Western Cape Provincial Government to do an all-inclusive forensic investigation into all the allegations. Apart from the actual work on the allegations being done, we are liaising with the acting municipal manager to ensure that we include and deal with the full suite of the allegations,” she said.
Van Wyk said once the assessment is finalised and prima facie evidence exists that instances of fraud, corruption and maladministration have been committed, the minister will be advised on a full forensic investigation in terms of Section 106 of the Municipal Systems Act.
The allegations include:
An alleged irregular business deal with Sakh'iKhaya Suppliers CC, by virtue of which the municipality allegedly spent R113-million on prepaid water meters at inflated prices without any prospects of recovering such expense. It is alleged the meters purchased exceeded the demand required and many water meters are currently in storerooms and not installed. It is further alleged that this expenditure amounts to irregular or fruitless and wasteful expenditure.
Alleged irregularities pertaining to the replacement of asbestos roofs of RDP houses in Hornlee.
Alleged irregular approval of building plans of properties adjacent to the Boatshed that exceeded the permitted roof height. It is alleged that the approvals were unlawful as the applicant failed to submit an application for departure or other relevant land use applications.
Alleged failure to disclose immovable properties valued at about R64-million as contingent assets in the annual financial statements for the 2018/2019 financial year, constituting misleading information to the AG.