Knysna Executive Mayor, Eleanore Bouw-Spies illegally awarded bid to lease property

The ANC will request the Knysna Municipal Council on Tuesday, 6 December 2016, to review the illegal decision by the Executive Mayor to award the lease of East Head Café to Albert No 74 CC. The Executive Mayor resolved on the 23rd of November 2016 to grant the right to control or manage its asset on erf 4620.

The ANC will request Council to review the decision based on the following:

In terms of council’s Management of Immovable Property Policy, only the Municipal Manager has the authority to decide to deviate from a competitive process, and may enter into a private treaty agreement. The Executive Mayor does not have the authority to dictate to the Municipal Manager to deviate from a competitive bid or enter into private treaty agreement.

Secondly, the executive mayor does not have the authority to grant the right to use, control or manage a capital asset. This authority in terms of section 34.1(b) of the Asset Transfer Regulations is reserved for the municipal council.

Thirdly, the decision by the executive mayor to grant the bid to Albert No 74 CC is illegal, as this contravenes section 117 of the MFMA which barred councillors from being involved in the awarding of bids.

Mertle Gombo (ANC)

The executive mayor also contravened section 44 of the Municipal Supply Chain Management Regulations which prohibited persons in the employ of the state to do business with municipalities.

The executive mayor has also ignored the advice of the acting chief financial officer (CFO), Louis Fourie, who argued that the resolution is in contravention of council’s management of immovable property policy, the supply chain management policy and the asset management regulations.

The ANC appeals to all councillors, to support it in its endeavour to ensure clean and transparent governance in Knysna and reverse this illegal decision of the executive mayor.

Issued by Cllr Mertle Gombo
Knysna ANC Chief Whip, Knysna Caucus
Cell: 0729582036

NB: Council agenda refers to the company as Allburger No 74 CC, not “Albert No 74 CC”.