Question NW3274 to the Minister of Tourism

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13 November 2017 - NW3274

Profile picture: Purdon, Mr RK

Purdon, Mr RK to ask the Minister of Tourism

With regard to the renovations of the Tsholomnqa Estuary Wilderness Camp in the Buffalo City Metropolitan Municipality in the Eastern Cape, (a) who was serving as the project manager for a certain company (Performance Unlimited?) at the time that the specified company absconded its responsibilities, (b) was the specified company already paid in full for the renovations of the camp at the time that it absconded, (c) what actions were taken by her department to compel the specified company to complete the work, (d) what action did her department take to recoup lost monies from the specified company and (e) what efforts were made by her department to complete the unfinished project so that the KwaSandile community is provided with a functional entity?

Reply:

a) Name of project manager – Mr Lyall Welgemoed who was supported by a team of consultants, contractor and a finance person. The allegations that Performance Unlimited absconded from its responsibilities is incorrect, the contracted work was completed.

b) Was the company paid?

Performance Unlimited was paid for work completed.

c) What actions was taken to complete the work?

No actions were required as the said company completed the work as required.

d) What actions was taken to recoup lost monies?

No monies were lost as the funds were accounted for.

e) What efforts were made by her department to complete the unfinished project

This is a historical project which dates back to 2001. The owning entity is the Tyolomnqa Economic Development Trust. The project concept was developed in 2001 from discussions by the Tyolomnqa River Estuary Forum, with interests in the conservation and ecological management of the estuary.

The then Department of Environmental Affairs and Tourism (DEAT) agreed to provide funding of

R 750 000 from the Poverty Relief Grant for the development of a wilderness camp. The original business model was based on eight chalets (4-bed) and four campsites (8-persons per site). This funding was not sufficient to cover the full scope, only seven chalets, the campsite and a boma were completed in 2006. The project was never operational and over time the wilderness camp deteriorated.

The then Department of Environmental Affairs and Tourism granted additional funding of R9.5 million in 2009 to resuscitate the project, refurbish the existing facilities and construct new ones, with the intention of operationalising the project. Performance Unlimited was contracted as the Project Implementer. Performance Unlimited commenced with the work in 2011 whilst awaiting zoning approval. In 2012 they submitted a request for additional funding of R6.3 million to cover the budget short fall.

In 2012 the new Department of Tourism reviewed the additional funding application, conducted a site visit to verify the need for additional funding and also met with the local municipality. The new Department of Tourism was not convinced of the long term sustainability of the project due to a number of reasons including governance and institutional arrangements for the project and the poor access road. The additional funding which was requested in 2012 was not granted and the Department did not continue with the project.

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