KZN Public Works to manage 15 coastal business properties between Hibberdene and Port Edward
Businesses will be offered long-term leases, which will help attract investment and create much needed jobs in Ray Nkonyeni Municipality.
In a major shift, management of 15 coastal properties has been transferred from the National Department of Public Works and Infrastructure to its KZN counterpart, effectively stripping Ray Nkonyeni Municipality (RNM) of its role.
Although a 20-year agreement was signed in 2016 allowing RNM to manage properties along the admiralty reserve between Hibberdene and Port Edward, the municipality failed to administer leases consistently and transparently.
After several short-term extensions between 2021 and 2023, many businesses were left operating on unstable month-to-month leases. The municipality later claimed ownership of some properties and advertised them for tender without resolving disputes or responding to departmental correspondence.
Following complaints from affected tenants, the department terminated the agreement on August 3, citing procedural irregularities and unfair treatment.
Stability for coastal businesses
At Monday’s official handover and red-ribbon ceremony, the focus was on restoring stability for coastal businesses.
Minister for Public Works and Infrastructure Dean Macpherson handed over the properties, mainly comprised of restaurants to Meyer at C-Bali Restaurant in St Mike’s last Monday.
“We are here to sign over the managerial functions of the admiralty properties that are within the department’s stable to the provincial government. We felt it necessary after numerous complaints around the lack and of hands on management of long-term leases that would have been awarded by the local municipality,” said Macpherson.
Furthermore, the businesses will be offered long-term leases, which will help attract investment and create much needed jobs in the area.
“We have now transferred these functions to the provincial government which will be the contracting authority for all properties that are on this land. We have seen the dereliction of the properties, some of them have not been fixed after flood damage. Some leases have been left to expire and this causes job losses in the area.”
According to Macpherson, national government could not sit back and watch people lose their bread and butter, therefore the intervention.
He added that businesses on a month-to-month contract were unsustainable.
Meyer said his department’s goal is to create jobs and grow the economy for the people on the coast. “What we are seeing here today, is putting us on the right path to deliver on both goals. We are here to make sure that we keep the South Coast the jewel that it once was.”
He said the event followed a desperate plea from a local business owner whose once-prominent seaside establishment was destroyed by storms and floods. Without lease security, he was unable to rebuild or retain his staff.
“This is all about jobs,” said Meyer. “Ray Nkonyeni Municipality sits with 37% unemployment, while tourism contributes 16.9% to Ugu District’s economy.”
No show for Ray Nkonyeni Municipality
RNM’s leadership was noticeably absent at the meeting.
According to Macpherson, RNM was well aware of his visit, and that they had three months to respond to a letter sent to municipal manager, Khetha Zulu’s office, however, no response had been forthcoming.
Last Sunday, a statement was released by the Office of the Mayor through the municipal spokesperson, Simon April, stating that they had learnt with concern that Macpherson together with Meyer will be visiting the area.
The statement alluded that the minister’s visit was disturbing because established government protocol dictates that when a minister or MEC visits a particular locality in the course of official duties, the affected municipality must be informed in advance and involved in the logistical arrangements.
“The municipality can only conclude that the failure to follow established inter-governmental protocols may be linked to a deliberate disregard for lawful and cooperative governance practises. The municipality therefore calls on the Ministry of Public Works and Infrastructure to reconsider its approach, and engage the municipality through proper intergovernmental channels.”
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