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A former Knysna Municipal Manager and the current Garden Route District Municipal (GRDM) Manager appeared briefly in the Knysna Magistrates court on Thursday on charges of fraud and corruption, forgery, and uttering involving millions of rands.
Former Knysna MM Dr Sitembele Vatala and District MM, Monde Stratu, were released on R15 000 bail each and warned to visit a police station weekly.
This follows a longstanding dispute between Knysna and the District Municipality relating to properties belonging to the GRDM situated in the Knysna Municipal area.
GRDM Mayor, Memory Booysen, says he is disappointed that the impasse on the treatment of properties between the two municipalities has landed in court.
Booysen released a scathing statement saying that the legal action against Stratu was merely a distraction from the ongoing discussions between the two municipalities on the issue of the properties.
“The Executive Mayor of Knysna, Councillor Aubrey Tsengwa has reiterated that both municipalities agreed not to declare any disputes, but to continue with discussions to find an amicable solution,” Booysen said in the statement.
He said a 21 July resolution agreed to continue discussions to find an amicable resolution in the spirit of “cooperative governance”.
“A delegation from GRDM met with Knysna on 1 February 2023 to further discuss the properties in question and the meeting was very positive.
“ Knysna Municipality delegation, led by the Deputy Mayor, Cllr Alberto Marbi, Cllr Neil Louw, Cllr Susan Campbell, and the Municipal Manager agreed to write an item to the Knysna Municipal Council and recommend a possible solution for these properties.
“It is extremely surprising that during or after deliberations, the information regarding a case opened against the GRDM MM was not disclosed,” Booysen said
He said this amounted to malicious prosecution, aimed at tainting the reputation of the two municipalities and Stratu.
Meanwhile, National Prosecuting Authority spokesperson, Eric Ntabazalila, says the pair have been warned to visit their police station weekly and not interfere with witnesses.
Hawks spokesperson, Zinzi Hani, says it is alleged that between April and December 2019 the accused failed to declare seven municipal contingency assets to the Auditor General which were previously reflecting on the 2012 and 2017 financial year audit reports of Knysna Local Municipality.
She says these properties were supposed to be transferred from Knysna Local Municipality to Garden Route District Municipality but the transfer could not take place.
"The value of these properties is R64 million. As a results of this fraud the Knysna Local Municipality suffered potential loss."
She says it is further alleged that the accused falsified the 2018/2019 audit report .
Vatala and Stratu will be back in the Regional court again on the 12th of May as further investigations take place.
This article has been updated to reflect further details from the Hawks.
