Hermanus deletes R55 million in bad municipal debt, 2021–2025

The Overstrand Municipality includes the towns of Hermanus, Gansbaai, Kleinmond and Stanford, together with surrounding coastal and rural settlements. The municipality’s administrative headquarters is located in Hermanus, which serves as the central seat of governance and management. Overstrand has for many years been governed by the Democratic Alliance (DA), which holds the majority of seats on the municipal council and controls the executive leadership of the municipality.

In 2021 the Council approved the write-off of “the irregular expenditure in the amount of R2 064 382,56…” In 2023 the Council approved the write-off of “the irregular expenditure to the amount of R2 015 255.07…” In 2024 the Council approved the write-off of “irregular expenditure in the amount of R1 037 500.00.”

If the financial hole Overstrand Municipality is creating isn’t enough, in 2025 the Council approved the write-off of “irrecoverable debt totalling R53 658 380.02.”

What? Irregular expenditure is money spent without following the laws or rules that govern how public funds must be spent.

To sum this up. Between 2021 and 2025 the Overstrand Municipality, administered from its Hermanus headquarters, repeatedly wrote off substantial amounts of irrecoverable expenditure and bad debt that total more then R55 million. These write-offs show that the municipality is struggling to collect the money it bills. Poor spending and procurement controls have turned mistakes into real financial losses, raising serious questions about the accountability of both officials and councillors.

Why is this happening, and where is the money going? One thing is clear: the Overstrand Municipality is poorly governed. If anyone has information that could help us track these funds, please contact the newspaper.