The Knysna Municipality’s governance crisis has taken a new turn with allegations of corruption now in the hands of the Hawks for investigation, the Western Cape Department of Local Government, Environmental Affairs and Development Planning revealed during a briefing to the Standing Committee of Provincial Parliament on Tuesday.
The allegations of financial misconduct involve both public representatives and municipal officials at the ANC-led municipality, which continues to operate under a Section 154 provincial support plan following a September 2025 attempt to place it under Section 139(1)(c) administration, which the National Council of Provinces (NCOP) blocked.
According to the department, two disciplinary cases involving senior management were recorded between January and June, relating to the Municipal Manager and the Director of Corporate Services. The referral to the Hawks comes amid a broader pattern of governance failures that has plagued the Garden Route municipality for years.
Controversial appointments fuel crisis
The governance crisis extends beyond officials to include decisions by the ANC-led council that have raised serious questions about accountability. According to the Head of Department, the council appointed a Chief Financial Officer who had previously been dismissed for financial misconduct, despite written evidence indicating the council was aware of this history.
This is not the first controversial CFO appointment at Knysna. In July 2023, the council appointed Leslina Olga Ndlovu to the position, despite her dismissal from Bojanala Platinum District Municipality — in North West province, not the Eastern Cape — for financial misconduct. The appointment contravened Municipal Finance Management Act regulations prohibiting the re-employment of individuals dismissed for financial misconduct within ten years. Ndlovu later resigned, but the appointment prompted legal action from the Western Cape MEC for Local Government.
The Auditor-General has reported governance instability in senior municipal posts between 2021 and mid-2026, though the precise turnover figures require verification.
Intervention fails to turn tide
Despite receiving extensive support from the Western Cape Government to keep essential services running, including preventing taps from running dry, ensuring sanitation systems do not flood streets, and supporting refuse removal, the ANC-led council has failed to improve the lives of residents.
The municipality was fined R10-million by the Knysna Regional Court in May for multiple environmental violations regarding wastewater and sewage management. The fine was suspended for five years on condition that the funds are utilised for emergency repairs.
In June, the Western Cape High Court ruled that a lease agreement between the municipality and Grey Elephant Investments was unconstitutional and invalid due to the failure to follow a competitive tender process.
The Western Cape Provincial Government attempted to dissolve the municipal council in September 2025, but the National Council of Provinces blocked the move, directing that the municipality continue operating under a strengthened Section 154 support plan.
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Clean audits elsewhere highlight failures
Dave Bryant, DA Western Cape spokesperson on Local Government, Environmental Affairs and Development Planning, said it was no coincidence that 20 of the Western Cape’s 30 municipalities achieved clean audit outcomes in the 2024/25 financial year.
“Good governance, accountability and sound financial management are the hallmarks of DA-led administrations. Knysna, under the ANC, demonstrates the consequences of poor political leadership and decisions that undermine public trust,” Bryant said.
The Auditor-General’s report for 2024/25 granted Knysna an unqualified audit opinion with findings. The municipality achieved 67% of its planned performance targets while spending 98% of its budget, and AGSA identified a material irregularity relating to environmental harm caused by infrastructure failures. While the financial statements were deemed fairly presented, the report flagged recurring governance failures, deteriorating infrastructure and poor service delivery.
Road ahead unclear
Bryant said the referral of the allegations to the Hawks was an important step, but accountability must follow.
“While the Western Cape Government continues to support Knysna to ensure essential services are maintained, it cannot govern on behalf of a council that has repeatedly failed its residents. The people of Knysna deserve a municipality that is transparent, accountable and focused on service delivery,” he said.
The municipality is governed by a coalition consisting of the ANC, EFF, Patriotic Alliance, and Plaaslike Besorgde Inwoners. The Hawks investigation is expected to determine whether criminal charges will be laid against those implicated in the corruption allegations.
In June 2025, the Hawks arrested a 41-year-old municipal general assistant for allegedly selling municipal jobs between September 2019 and November 2021, demonstrating the depth of corruption concerns at the municipality.
ALSO READ: Knysna Municipality fined R10 million for environmental crimes spanning seven years
