Knysna Municipality Moves to Recover R11.5M in Irregular Tender Spending
Knysna Municipality launches major crackdown on irregular tender spending, moving to recover R11.5M from contractor Megaflow following MPAC investigation into procurement irregularities.
Knysna Municipal Building where MPAC investigation revealed R11.5M irregular expenditure in tender process
MPAC Investigation Reveals Tender Irregularities in Public Funds Management
In a significant move highlighting ongoing challenges in public accountability and economic justice, Knysna's Municipal Public Accounts Committee (MPAC) has launched an aggressive recovery action to reclaim R11.5 million in irregular expenditure from contractor Megaflow.
The investigation, led by newly appointed MPAC chairperson Susan Campbell, uncovered serious irregularities in tender compliance, echoing broader patterns of economic mismanagement affecting marginalized communities.
Tender Compliance Failures
The investigation revealed that Keineli Investments CC, trading as Megaflow, failed to meet crucial tender requirements. The company was found to have misrepresented its compliance with special qualifying conditions, particularly regarding the employment of a qualified millwright - a requirement that speaks to the broader issue of skills verification and qualification standards in public procurement.
Political Dynamics and Accountability
The resolution passed with support from DA, KIM, and one PA councillor, demonstrating rare cross-party cooperation in addressing financial misconduct. This development comes amid growing demands for institutional reform and accountability in Western Cape governance structures.
"This is news to me. Until I receive official communication from Knysna, I cannot comment on this," stated Keith Naicker of Megaflow, when contacted about the resolution.
Recovery Actions and Consequences
- Full recovery of R11,529,030.24 from Megaflow
- Criminal case referral to police authorities
- Reporting to National Treasury for supplier restriction
- Implementation of stricter procurement controls
The municipal manager has been instructed to initiate recovery proceedings, marking a crucial step toward financial accountability in local government spending.
Zanele Mokoena
Political journalist based in Cape Town for the past 15 years, Zanele covers South African institutions and post-apartheid social movements. Specialist in power-civil society relations.