KLEIN KAROO NEWS - The investors who showed interest to inject R500-million into the upgrade and running of the Calitzdorp Spa and De Hoek resort near Oudtshoorn, have backed out. Garden Route Mayor Memory Booysen made this announcement during his address to the council on Tuesday.

According to Booysen, the investors walked away from the deal because of different vested interests and suspicions by the opposition parties, which had been investigated by the Western Cape government.

"When we dealt with the Calitzdorp issue, everybody was excited. It was a R500-million injection into the Garden Route. I am going to say it again, with tears in my eyes, R500-million is gone," said Booysen.

Booysen was investigated for two issues which raised some concerns from the opposition parties and the community: A paid trip to Indonesia, and a possible 50-year lease agreement for the Calitzdorp Spa and De Hoek resorts in Kannaland and Oudtshoorn, to the same company that sponsored the trip.

A forensic team of the Western Cape Department of Local Government paid a visit to Booysen's office in July.

Outcome in favour of Mayor
The outcome of the investigation was in the mayor's favour, but in his correspondence, MEC for Local Government Anton Bredell cautioned the district municipality to make sure they follow all due processes and "consider the views and recommendations raised by National and Provincial Treasury before concluding any agreement".

Municipal Manager Monde Stratu also received a piece of advice from Bredell: "The Municipal Manager (MM) is furthermore cautioned from relying on the Council resolution resolving to grant the MM permission to enter into a long-term lease agreement with the ISCC Group of Companies as such delegation is contrary to the provisions of the Asset Transfer Regulations."

In a nutshell this means the municipality must make sure they follow the correct procedures and follow the rules without leaning solely on council resolutions.

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