The elephant in the room
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.