By Patrick Cull
MANY of the controversial leases identified in the Kabuso Report were being renegotiated, acting municipal manager Themba Hani said in a report to the Nelson Mandela Bay council today (Friday).
The “interim report” on actions flowing from the release of the report follows resolutions taken by council on December 8 last year with respect to the leases, rental of office accommodation in Kwantu Towers, an investigation of staff misconduct, and the reporting of “prima facie criminal conduct” to the police for further investigation.
Regarding the “prima facie criminal conduct” Hani said these cases were reported to the Hawks on December 9 and he met regularly with the various law enforcement agencies for “reporting purposes”.
The report reveals several leases of municipal facilities are being renegotiated, with compliance notices issued to the companies involved on February 6:
* Madiba Bay – the company proposed that the municipality consider including an addendum to the original lease which had been referred to Council’s legal representatives;
* Willows Resort – Madiba Bay Resorts had indicated willingness to conclude a Facility Management Agreement to regularise their occupation of the resort; this would be put before Council before being referred to the company for its consideration;
* Van Stadens Resort – A revised proposal and addendum to the initial lease had been received and referred to the Council’s legal representatives, with final opinion expected on May 23;
* Beachview Resort – The company wished to conclude a Facility Management Agreement as it was “not in a position financially” to comply with the terms of the lease agreement;
* Motherwell Beach – No proposal had been received from the developer and it was proposed new development proposals should be called for if the developer does not indicate interest by May 25
* Swartkops Power Station – The developer had “indicated a willingness to resolve the matter amicably” and the possibility of housing the desalination plant there had been discussed. An EIA and feasibility study were awaited from the developer.
With regard to Kwantu Towers, Hani said all staff except those on three floors had been relocated. The others were still in Kwantu Towers “pending the finalisation of the tender process for the procurement of office accommodation”.
Hani said the matter relating to misconduct by municipal staff had been referred to Internal audit and labour relations for investigation and advice; disciplinary hearings would be scheduled according to the reports received.
He said issues raised in the Kabuso Report with regard to possible financial irregularities and maladministration were receiving “the necessary attention,” adding that the matter might not be finalised in the current financial year.