Knysna Municipality recently took 3 loans totaling R15 487 000 for the 2013/14 financial year (important to note that they were taken weeks before the new 2014/2015 budget year began).

These are detailed as:

• ABSA: R1.33million (5-year loan)
• Nedbank: R2.1million (10-year loan)
• Nedbank: R12.1million (15-year loan)

ABSA and and FNB were deemed “non-responsive” regards the 10-year loan and would not offer terms for the 15-year loan. Is that an indication in their poor faith in Knysna’s ability to repay?

The loans will be used for vehicles, and co-funding of MIG (Municipal Infrastructure Grant) projects involving refurbishments and infrastructure.

The interest amounts to almost R15million so total repayment in the region of R30million.

PS: This information has not appeared on the Knysna Municipality’s website since the loans were approved by a Special Council meeting 2 weeks ago.