There are many controversial decisions made by the Overstrand Municipality (OM) that provoke reactions on social media. One of these is the lease agreement for the development of the former De Mond Caravan Park and surrounding land in Voëlklip, Hermanus.
Last week the OM said in a press release that they are pleased to announce that on 25 September the council approved the lease agreement for the development of the former De Mond Caravan Park and surrounding land.
“The signed lease agreement is still subject to conditions, contrary to some inaccurate claims on social media that these have been waived.
“The site development plan submitted with the tender will go through a public participation process as required by planning legislation before final approval. This clarifies any misunderstandings about public involvement and confirms that public participation will take place,” Dean O’Neill, Municipal Manager said.
On 15 August 2019 Hermanus Times published an article about a tender that was awarded to Pohl Property Development Group, which listed the project better known as “The Crown Grant” under its future projects list. (Hermanus Times 15 August 2019 “Big plans for De Mond afoot”). The article stated that this tender is for the development of the De Mond site, situated on Erf 5327 and a portion of Erf 4831, Voëlklip for the purpose of a public resort on the basis of a long-term lease.
After an arbitration process it was confirmed that the Pohl Property Development Group failed to comply with the suspensive conditions and the lease agreement had lapsed due to non-fulfilment.
The 25 year struggle to develop the De Mond Caravan Park has left many people hot under the collar.
“For me it is not so much about the development,” a community activist said, “but the way in which the then residents were deprived of their land. Sadly these people were left homeless even though the property still stands derelict.”
In late 2012, after the Caravan Park Association’s lease expired, 200 families –mostly pensioners – were evicted and 11 days later everybody and their homes had to be gone. In 2014 the last residents of De Mond were forced to evict their homes.
And today one of Hermanus’ great assets stands sadly forlorn, neglected and apparently abandoned, a major eyesore with run-down buildings, piles of building rubbish and blown-over trees.
During the Overstrand Investment Conference held on 23 and 24 June 2022, De Mond Resort was one of the properties listed. The proposal call was advertised on 29 July 2022 and four tenders were received.
The tender was awarded on 4 March 2024 to Point Caravan Park (Pty) Ltd. A lease agreement has been entered into that includes various conditions and on 25 September the lease agreement was approved.
It is also the tender award that raised eyebrows. Rumors are doing the rounds that one of the Mayco members is linked to Point Caravan Park (Pty) Ltd.
On 14 August the President of the Alliance of Citizens for Change (ACC) Masizole Mnqasela laid criminal charges with the Hawks relating to allegations of fraud and corruption against councillor Clinton Lerm regarding the award of a tender to develop lucrative land.
“On 26 June I approached the Hawks as contemplated in the Prevention and Combatting of Corrupt Activities Act 12 of 2004,” the press release stated.
“This is after whistleblowers approached me and informed me that Cllr Clinton Lerm has allegedly been involved in a corrupt activity with intentions to enrich himself and those close to him.
“This relates to the development of municipal prime land in Hermanus in tender no. SC2308/2022 Lease and Development of a Portion of Erf 4831 Hermanus and a Portion of Erf 5327 Hermanus (De Mond) as a public resort.
According to the press release it is alleged that Lerm failed to disclose his business relationship with the business partner/s who successfully was awarded a contract to lease a lucrative land parcel for profit.
On August 22, the OM responded to the rumours.
“There are also allegations by the ANC, ACC and some esteemed members of the public of the improper involvement of MMC Lerm in the awarding of tenders,” O’Neill said.
According to him the new council identified a number of municipal properties that would enhance investment in the Overstrand. “The list was noted by council at a formal council meeting held on 30 May 2022 and was presented at the Investment Conference held on 23 and 24 June 2022. This is where the involvement of MMC Lerm and all other councillors stopped as councillors are barred from serving on any tender committees of the municipality.”
Advertisements were placed inviting tenders for a number of the properties. “It is common knowledge that MMC Lerm and the MM attended a site meeting for the De Mond land on 26 August 2022, to welcome the potential investors and explain council’s intent.
“The tender for the lease of the De Mond land closed on 4 November 2023 and was awarded to Point Caravan Resort on 4 March 2024. Point Caravan Resort declared their business interest with Clinton Lerm in the declaration by supplier segment of the documentation.
“It can be confirmed that MMC Lerm declared his interest with Point Caravan Resort when he became a councillor in November 2021,” O’Neill said.
“It is also noted that the president of the ACC, Masizole Mnqasela, opened an inquiry with the Hawks referring to MMC Lerm, the municipality as well as the Mayor and MM. The investigation by the Hawks regarding the allegations is actually welcomed as it will show that there is no merit in the allegations.”
According to O’Neill, there is still a lot to be done before development can begin. “Before construction, a site development plan must be approved,” he said. “This plan will be subject to a public participation process, allowing the public to comment on the proposal before it is considered by the decision maker.”
