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The body of 57 year old Michael Quin, a self employed electrician, was discovered by workers on Tuesday morning at the GiGi Self Catering Units near the Coffee Bay Hotel.
Police spokesperson, Brigadier Marinda Mills, says Quin was a long-time resident of Coffee Bay on the Transkei Wild Coast.
Preliminary investigations revealed that he sustained several stab wounds from a sharp object.
Police have not yet established if any valuables were taken from him.
Brigadier Mills says his motor vehicle was not taken by the assailants.
A case of murder is being investigated by the Coffee Bay SAPS and anyone with information is asked to contact their nearest police station.