The Democratic Alliance (DA) illegally allowed over two and a half million rand of public funds to be used to plug the financial hole of Knysna Tourism. The DA was and is in charge of the municipality. Several of their councillors were directors on Knysna Tourism’s Board.
Why was no one punished? Why, instead, were some rewarded? Why has the DA, right up to Premier Helen Zille and MEC Alan Winde, refused to cooperate?
Using Knysna Tourism’s financials, this blog will be a clear example that reveals how the public and Parliament is deliberately being misled, the latter after local government had to respond to my February 2016 submission of allegations of corruption and maladministration.
Knysna Knews is one of the DA’s propaganda Facebook pages attacking me. It has, several times, claimed that i lied about Knysna Tourism’s finances and the organisation being bankrupt.
Knysna Tourism may not have been declared bankrupt but practically it was. Whereas a normal business would’ve have died, it had a massive advantage others didn’t… a direct line to taxpayers cash that would cover-up its bad health. That grant-in-aids were used to fill its financial hole is illegal under the MFMA (Municipal Finance Management Act).
Knysna Tourism could not exist without public funding, have received approximately R4-million annually. Despite this, Grant Easton, Knysna’s Municipal Manager, told Parliament that he couldn’t answer questions about Knysna Tourism because it was a Section 21 company. He said this despite him being on the organisation’s Finance Committee. That he was allowed to say this to Parliament was obviously condoned by Knysna’s two highest ranking DA politicians who accompanied him. One of those politicians was a director of Knysna Tourism during 3 of the controversial years in question. Easton, however, was happy to state that nothing was wrong with Knysna Tourism’s financials and that checks and balances were in place.
Knysna Tourism’s financials contradict Knysna Knews, the DA and Knysna Municipality:
2010 – loss R257 216 (in brackets in document)
2011 – loss R605 580 (in brackets in document)
2012 – loss R 1 541 235 (in brackets in document)
I don’t have the financials for 2013 but a 6-month cash flow analysis (also below) showed the organisation at a R245 275 loss.
These figures may be far higher. Looking at that last document, over 6 months, R198 000 was spent on consultants, R45 000 on cash wages (odd) and R216 000 on “Shaun’s fees” (which i assume was legal fees involving the ex-CEO).
During that period, R1 666 800 was received from the Knysna Municipality. The Service Level Agreement stipulated that 20% of this had to be spent on development. That equates to R333 360… but they only spent R11 000. There was also a severe absence of monies being spent on advertising the town.
It has been 4 years 11 months since i started asking questions. The DA is still resisting being honest with the public they were supposed to protect and serve. DA members are inappropriately trying to shut me up. Court cases are as common as popcorn.
I’m an activist versus a powerful political party. Help me by sharing this post on social media and with any journalists you know.
You can comment on the Love Knysna Facebook post.