DA in Knysna votes against council resolution to write off GEI’s rate debt

22 August 2024

The Democratic Alliance (DA) in Knysna today voted against a Council proposal to write off a significant portion of Grey Elephant Investments' (GEI) rate debt which allegedly amounts to between R40 and R60 million. The proposal, brought to Council and approved by the ANC/PBI/PA/EFF coalition agreed that a final payment of R10 million be paid by GEI to settle its arrears.

This decision is a slap in the face to honest ratepayers in the Knysna Municipality, and significantly undercuts Knysna’s Municipal cashflow in an already strained financial environment. This interference in rate collection sets a dangerous precedent for Municipal financial management and ultimately inhibits the municipality from providing services to its residents.

Knysna cannot afford to grant rate holidays and exemptions to residents purely because they are the Mayor’s friends and cronies.

As part of this agenda item, the DA made an alternative proposal aimed at recovering the full amount owed to the Municipality. Our proposal included:

Noting the status report on Grey Elephant Investments, the Rex Hotel, and The Gallery Body Corporate.

Rescinding all previous resolutions related to these entities.

Handing over the account to the Municipality's Debt Collectors for full recovery.

Ceasing payments to Grey Elephant Investments for office accommodation lease.

Investigating the Executive Mayor's conduct for potential breach of the Code of Conduct for Councillors.

Regrettably, our proposal was rejected by the majority ANC/EFF/PA/PBI coalition and proves that this government is only interested in protecting the interests of politicians and those connected to them over the residents of Knysna.

Moving forward, the DA will now consider taking potential legal action against the Municipality, including raising this matter with Provincial Minister of Local Government, Anton Bredell, as it may violate the Municipal Financial Management Act (MFMA).

The DA remains committed to transparent financial management in Knysna in the interests of its residents. We will continue to advocate for the fair treatment of all ratepayers, and responsible financial management to rescue Knysna from the coalition of corruption.

Statement issued by Levael Davis - DA Knysna Caucus Leader, 22 August 2024