Both National and Provincial treasuries have independently reviewed the proposed R1.2 billion solar farm energy project for Kannaland and have found serious legal and substantive concerns. This brings into question the municipality’s compliance with the Municipal Finance Management Act.
As chairpersons of the Finance, Economic Opportunities and Tourism Committee and Local Government Committee at the Western Cape legislature, we will be inviting both of the treasuries and the Kannaland Municipality to brief us on the current discord over the project.
We have observed that the Kannaland Council issued a notice of meeting with the intention of moving forward with the project despite these concerns. The provincial Minister for Local Government, Anton Bredell, subsequently issued an instruction for the council not to sign the Energy Security Management and Administration Agreement with the solar energy company, Inovasure, this week.
Local governments are critical in delivering services to the residents of the Western Cape and whilst the intention to create jobs and bring energy security to the area is vital, council cannot move forward with a R1.2 billion project that may compromise the financial recovery plan of the Kannaland Municipality.
We trust that by bringing together both National and Provincial Treasury as well as the Kannaland Municipality, a way forward can be found where representatives of all spheres of government can work together for the people of the region.
