THE
BEYLEVELD
LEGACY
LETTER TO HELEN ZILLE
SENT BY HERMANUS RATE PAYERS ON THE 30 NOV 2010
Dear Mrs. Zille,
To quote Dr J. A. du Plessis, ‘Political language is designed to make lies sound truthful and murder respectable and to give an appearance of solidity to pure wind’.
Dr. du Plessis’s quotation came to mind when we were absolutely astounded to read the flagrant untruths, gross distortions, omissions and shallow and unjustifiable conclusions made in MEC Anton Bredell’s press statement delivered on 29th September 2010 in Cape Town. ‘Rabcav Development Facilitation Agreement: Fernkloof Estate And Schulphoek Development: Overstrand Municipality. It has been suggested in recent press that this was a whitewash – do you and your administration not want to defend integrity and plain simple honesty in localgovernment?
The Press is not going to let up on this disgraceful cover-up and in consequence, I am writing to ask you, even at this late stage, to intervene in the interests of social justice and honest governance. The integrity of Local Government or total lack thereof is the issue.
Referring to what Bredell said, let us state at the outset that we find it quite extraordinary that the Minister never replied to our correspondence, but chose to deal with it by brushing it aside, in a carefully crafted, evasive and inaccurate press statement.
Contrary to what was obliquely implied by the Minister, the Hermanus Ratepayers’ Association (HRA) received no communication from him or anyone from his department to attend a meeting in Hermanus on 9thSeptember 2010, when a team from his department met with municipal officials & representatives from Rabcav. We neither received a timeous or proper invitation or agenda from the Overstrand Municipal Manager, Werner Zybrands. If either Bredell or Zybrands can produce mail to the contrary, let the world see it! The criticism of Bedell and Zybrands’ bad behaviour therefore seems justified.
Bredell confirms that the Overstrand Municipality sold the Fernkloof plots for R281.78 million (including VAT). He also, unbelievably confirms that this money went into Rabcav’s account! How can public funds be paid into a private partnerships account in 2006 and not be subject to any audit for four years? Who earned the interest? Bredell says that the Mayor and Municipal Manager confirmed that the Audited Financial Statements of the Municipality and Rabcav were forwarded to the Ratepayers Association on different occasions. We can state categorically that:
1) The OM Financial Statements as presented in the Annual Report have never reflected the financials relating to the R281.78 million Fernkloof land sale and development.
2) No Rabcav financial statements were ever forwarded to the HRA Ratepayers other than an Annexure ‘A’ Fernkloof Estate financial status dated June 2009 that appeared in Municipal documents - information that raises more questions than it answers.
3) The ratepayers’ statement that the Auditor General did not review the Fernkloof Financials therefore still stands.
4) Further, Bredell’s comments regarding external audits by the Auditor General on OM’s financial performance do not confirm that the AG ever saw the Rabcav accounting of public money they controlled!
5) Rabcav has produced their auditors, Mazaars, statement of the Fernkloof financials. This document may suffice for the accounts of a private partnership, but in no way can be considered adequate for a R281.78 million accounting of public monies.
As regards the proceeds of the sale of public land, despite all the contradictory figures that have been bandied about, Mazaars audit confirms that Rabcav received R86 million! The Municipality received R30 million in cash! The private Hermanus Golf Club got a R30.5 million upgrade. Bredell states that this was paid for by Rabcav. Yes, lies sounding truthful – out of public money.
Bredell makes the extraordinary statement that ‘in both developments no public funds were used’ and ‘it was at no risk to the municipality’.
Bredell says this with a straight face having confirmed that R281.78 million was paid into Rabcav’s account before the development went ahead! More lies sounding truthful! And incidentally, what about the clause in the facilitation agreement that covers the facilitator’s expenses in the event of a development not coming off? - see Schulphoek R1.25 million abortive cost payout to Rabcav!
The HRA contends that the Development Facilitation Agreement (DFA) expired in 2005. Bredell simply says, ‘the agreement did not expire and was valid until all the work in relation to the agreement was concluded! Not so; please read the agreement and take note of the legal opinion sent to the Municipal Manager in 2009 – an opinion prepared by three eminent jurists, an Appeal Court Judge, a senior member of the Cape Bar and a lawyer. Did Bredell see this opinion? We believe that if he had, he could never have come to the conclusion he announced in his atrocious press release.
Zybrand when asked if he had disclosed this to Bredell responded with the extraordinary statement that the correspondence was private. Do civil servants conduct private correspondence on matters of public concern?
We regard this as an extremely serious issue requiring your attention and comment.
Mrs. Zille, against this background, you will appreciate how ratepayers view the Schulphoek sale of 56 ha of prime coastal land with 1.7 km of coast for R5.3 million. It is justified as a buyout of the DFA with Rabcav! – a flawed expired agreement through which facilitators hugely enriched themselves at the expense of the community. The sale of Schulphoek took place in 2010, laws applicable make development up to 22m of the high water mark illegal – Bredell simply dismisses this by stating that the development plans were approved prior to the recent Integrated Coastal Management Act – but the sale was a fresh 2010 agreement and the DFA contract had expired!
But now we have a new and very unpleasant situation arising out of Bredell ruling that a Public Participation Process be conducted and Zybrands stating that this is not necessary because the developer conducted work on the site prior to the expiry of the ROD specifically on 27th at end August 2010. The Community, including a Councilor has signed a document confirming that the Developer was not on site during August, but only arrived on site on 9th September 2010, when they were chased away.
Only one version of events can be factual. Zybrands does not respond to correspondence in regard to the PPP.
Mrs. Zille, you have appointed Patricia de Lille as Minister of Social Justice. We assume that by this appointment you are signifying some belief in Social Justice – selling off community assets for a pittance to developers who make tens if not hundreds of millions out of these deals strikes us as wrong. Wrong, very wrong and unjust when the same municipality is borrowing R160 million for maintenance of roads, sewerage, water and electricity in the Overstrand area. Paying R30.5 million for a private golf course and then selling off 46 ha of coastal property that is adjacent to and used by the communities of Zwelihle and Mt Pleasant for a pittance of R5.3 million to a developer who will make R100 million or more out of the deal, does not seem right, does it? This is not social justice.
Thinking residents in greater Hermanus, and there are many, have lost respect for the local municipality and Council and the credibility of Western Cape Government has been severly damaged by your Minister’s whitewashing of our request for a review of these events.
Members of the HRA Excom are fully prepared to come to Cape Town to discuss this matter with you. Please confirm receipt of this letter.
Thanking you
Yours sincerely
Linda Griffiths
Chairperson: Hermanus Ratepayers’ Association
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