Grey Elephant Investments emerges victorious in a legal confrontation with Knysna Municipality, as the Western Cape High Court invalidates an unlawful lease agreement and mandates the municipality to settle outstanding rental and consumption fees.
While an unlawful lease agreement was declared unconstitutional and invalid, Grey Elephant Investments (GEI) was vindicated in the latest litigation tug-of-war against the Knysna Municipality, in which the municipality was ordered to pay outstanding rental amounts and consumption charges.
This week, the Western Cape High Court ruled that the Municipal Council’s resolution to approve the lease agreement between the municipality and GEI (Knysna Mall) without undertaking a competitive and open tender process was unconstitutional, unlawful, and invalid.
The lease agreement was set aside after the municipality bypassed the mandatory procurement process.
Meanwhile, the lease agreement is also the subject of an investigation by the Office of the Public Protector. The complaint to the Public Protector was lodged by Ms Julie Seton, acting on behalf of ActionSA, on December 12, 2023.
