Mayor cleared of fraud claims over awarding spa lease to German firm

Memory Booysen Photo: Facebook

Memory Booysen Photo: Facebook

Published Oct 23, 2019

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Cape Town – Garden Route District Mayor Memory Booysen has been cleared of allegations of fraud related to the awarding of a 50-year lease agreement to a German company for the Calitzdorp Spa and De Hoek resorts in Kannaland and Oudtshoorn.

The Department of Local Government had launched a probe after concerns were raised following an all-expenses-paid trip to Indonesia for Booysen and a delegation by the ISCC group of companies in September last year.

In April, Garden Route District Municipality announced that ISCC’s investment company, LEN24, was to be awarded a 50-year lease to manage and upgrade the De Hoek and Calitzdorp Spa resorts.

Local Government head of department Graham Paulse said: “The allegations were investigated and it was determined that there is no basis on which to conclude that fraud, maladministration, corruption and/or failure to adhere to a statutory obligation has occurred.”

Booysen could not be reached. It emerged that the land was subject to a land claim and belonged to the Kannaland Municipality, according to the Department of Rural Development and Land Reform.

Booysen made an announcement in August that the investors walked away from the deal because of “different vested interests and suspicions by the opposition parties” following the investigation by the Western Cape government. 

The investors had shown interest in injecting R500 million into the upgrade and running of the Calitzdorp Spa but had backed out.

DA provincial leader Bonginkosi Madikizela said: “We are a party of due processes, we will always investigate allegations of wrongdoing. I welcome the outcome of the investigation.”

Approached on the status of the Calitzdorp Spa, Garden Route municipal spokesperson Herman Pieters said a report was due to go to the council on December 13 about this. The municipality did not respond to the outcome of the investigation.

The municipal council’s ANC chief whip, Piet van den Hoven, said that while the council had agreed to the Indonesian trip as a fact-finding excursion, it was not initially told that the company footing the bill was applying for the tender. 

The matter was eventually debated as there were two land claims on the property, and the lease was then withdrawn.

The matter is still with the Department of Rural Development and Land Reform.

Cape Times

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