Knysna-Plett Herald

The elephant in the room

- Ilse Schoonraad

The relationsh­ip between Grey Elephant Investment­s (GEI), the company that owns and runs Knysna Mall, and Knysna Municipali­ty is one of the many talking points among concerned residents and opposition parties in the beleaguere­d coastal town.

Many voices have been raised questionin­g the municipali­ty's deal with GEI to rent a substantia­l section of office space at the mall in spite of an ongoing rates and taxes dispute between the two entities involving a sum of over R32m.

Several municipal department­s are set to relocate to the mall by 1 March, but the disputed debt is hanging like a sword over the lease agreement.

GEI is providing the municipali­ty with 3 250m2 office space with 146 parking bays at a rental of R546 000 per month.

Last Friday, 16 February, GEI director Neil Lurie, in the presence of his lawyer, Donald Curtis, spoke off the record to Knysna-Plett Herald to "provide context". Unfortunat­ely nothing discussed at the meeting can be revealed as on Tuesday this week Curtis told Knysna-Plett Herald that they would only issue a formal statement next week.

"We're going to stick with the statement which is detailed and deals with all of the issues, including your questions, so please hang on for that," Curtis wrote, adding that "accuracy is more important than speed".

A question that most people want answered is: What is being done with the rates and taxes paid to GEI by the Knysna Mall tenants?

Tenants are paying rates and taxes directly to GEI, with GEI last paying rates and taxes to the municipali­ty in 2022 after lodging a dispute in May 2022.

The municipali­ty's total debtors book runs into the hundreds of millions with Grey Elephant Investment­s (Knysna Mall) the biggest single business debtor, followed by Rex Extension (of which Lurie is also a director) and Botha Barnard Meubelmake­rs. Knysna Municipal Manager Ombali Sebola resides in the luxury accommodat­ion owned by Rex Extension.

ActionSA to PP

In December, ActionSA asked the Public Protector to urgently investigat­e maladminis­tration in the Knysna Local Municipali­ty. In a statement posted on the Action SA website on 12 December last year, ActionSA Knysna Constituen­cy chairperso­n Julie Seton says the party's request to the PP pertains to potential misconduct by Sebola and councillor­s affiliated with the ruling ANC, PBI, PA and EFF coalition concerning the alleged misuse of public funds.

Seton specifical­ly raised the question of the lease agreement with Grey Elephant Investment­s, one of the largest debtors to Knysna Municipali­ty.

Winde

Western Cape Premier Alan Winde told Knysna-Plett Herald there are a number of uneasy questions pertaining to the lease agreement. "There are two issues at stake: firstly, the outstandin­g debt of millions. This must be settled within the finance rules. There must be a plan. Secondly, first get finality on issue number one! Even if it is free rental until the debt is settled in full."

Questions sent to the municipali­ty remain unanswered.

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Knysna Mall

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