DA welcome Knysna MM’s dismissal, but problems persist

The Western Cape High Court has nullified the appointment of Mr. Sebola as Municipal Manager of Knysna, a decision welcomed by the Democratic Alliance (DA). The party had contested the appointment, citing Mr. Sebola’s lack of qualifications and his track record of mismanagement, particularly during his tenure as Municipal Manager of Modimolle-Mokgophong, where he left the municipality in financial ruin and fled before facing legal repercussions.

In Knysna, Mr. Sebola’s brief stint exacerbated existing problems in key areas such as water supply, financial management, refuse collection, and sewage systems. The DA attributed his appointment to what it termed a “coalition of corruption,” comprising the African National Congress (ANC), Economic Freedom Fighters (EFF), and Patriotic Alliance (PA). His conduct, including a public altercation with a representative, further demonstrated his unsuitability for the role.

However, the DA is still doing battle in Knysna over persistent issues with ANC coalition governance, including massive financial liabilities. Attempts to remove the mayor, with whom the DA have ongoing disputes over municipal finances, have failed. Debts have surged by R200 million since the ANC-led coalition took power in September 2022.

The Knysna council governs with a one-seat majority, and is plagued by instability.

The controversy surrounding Knysna’s “R60 million” rates dispute with Grey Elephant Investments (GEI) shows no sign of resolution, despite a council decision earlier this month that GEI pay R10 million to settle the matter. The Democratic Alliance (DA) and Knysna Independent Movement (KIM) have voiced their discontent, alleging that the debt write-off was pushed through by mayor Aubrey Tsengwa.

According to the latest Section 71 report from July 2024, Knysna’s financial liabilities now stand at R575 million, raising concerns about the town’s fiscal stability. The Section 71 report paints a grim picture of Knysna’s fiscal mismanagement, showing that the municipality’s monthly commitments exceed available cash reserves by R75 million. This cashflow crisis, compounded by irregular financial oversight, places the town on the brink of insolvency.

The DA is also demanding a comprehensive debtors’ report from Knysna’s Chief Financial Officer, with particular focus on major outstanding debts, including those of Grey Elephant Investments (GEI). The company is alleged to owe over R70 million in unpaid rates and services, and the governing coalition is reportedly negotiating a significant debt write-off with GEI.

The DA has welcomed the court’s decision and Mr. Sebola’s immediate departure from office. However, concerns remain over suggestions from Knysna’s coalition government to reappoint him in an acting capacity, a move the DA vows to challenge. The party has signaled its intent to prevent any attempt by the local government to bypass the court’s ruling, reaffirming its commitment to ensuring competent governance in Knysna.

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