R250,000.00 paid for cancelled Milkwood festival in Hermanus

The Village News published an article on January 30th 2026 called Show us the Money were it describes concerns surrounding a R250,000.00 payment made by the Overstrand Municipality to a non-profit organisation for a community festival that was later cancelled.

The issue was brought to light by the Overstrand Community Action Network (OCAN), which requested clarity on whether public funds approved for the second Milkwood Festival in Zwelihle were properly allocated and whether they were returned after the event failed to take place.

Documents seen by The Village News show that although an initial request of R500,000.00 was submitted, Mayor Archie Klaas approved a reduced allocation of R250,000.00 in mid-September 2025, which was subsequently paid to the Phawulethu Non-Profit Organisation.

However, a statement posted on the Zwelihle Milkwood Festival’s Facebook page claimed that stage and sound engineers found the sports grounds poisoned and unsafe upon arrival, and that a conflicting soccer tournament had been scheduled by local officials. These developments rendered the hosting of the festival impossible and it was cancelled.

In response to public queries, Mayor Klaas confirmed that the funding application was submitted by Phawulethu and that the approved amount was paid directly to the organisation, which is registered as an NPO.

Mayor Klaas indicated that the municipality is reviewing its events and venue-booking policies to prevent similar issues in future, noting that shortcomings in the municipal halls booking system have become increasingly urgent.

While officials have confirmed the validity of the NPO, the extent of any political influence, including possible links to the Land Party, has not been conclusively clarified.

In a public response following the article, the Land Party says its involvement was limited to political advocacy to help the community organise the festival, and that all approved payments to stakeholders were made.

OCAN has continued to call for transparency, particularly on whether the public funds disbursed were refunded following the cancellation of the festival. The heroic movement has requested a comprehensive investigation by Municipal Public Accounts Committee (MPAC).

What I find interesting is the recurring pattern of so-called “public-private partnerships” between politicians and non-profits. To me, it looks as though non-profits are no longer working and should perhaps be scrapped entirely.