Durban – The eThekwini Municipality has hit back at allegations that its desire to use uMhlanga’s exclusive Pencil Club to wine and dine investors is a waste of ratepayers’ money and insists the venue is the ideal location.
The city has taken umbrage at IOL’s report– which was followed by other publications – saying it was “sensationalist”.
This week city officials were given the nod by ANC councillors to hire out The Pencil Club in uMhlanga for up to R16 000 a day to host potential investors who they say are used to an international standard.
The Pencil Club, with its sweeping views of the Indian Ocean, is the place to be seen in Durban and a favourite hangout of the city’s elite where single-malt whiskey, fine dining and Cuban cigars are the order of the day.
According to the city’s own report, hire of the venue is R16 000 for a full day and R8 000 for half a day.
In a statement to IOL, the city said about its report to the Economic Development and Planning Cluster: “The Pencil Club was found to be an ideal location as it is situated near various new developments including but not limited to the Raddison Blu hotel, Oceans Mall, and the Sibaya Precinct among others. This presents a chance to showcase and demonstrate the city’s offerings and enhance investor confidence. In addition, the strategic positioning of The Pencil Club offers an advantageous perspective, allowing investors to appreciate the city’s beauty and scenery due to its elevated height”.
The city said that it did not aim to become members of The Pencil Club but to hire the venue when it is required.
“The city hires venues across the municipality all the time. Any insinuation that some venues must be excluded from procurement for no other reason other than some reporter once heard that there are cigars in that venue must be rejected. All that is required in all procurement is that the correct procedures must be followed, and the necessary approvals obtained. There must also be value for money in whatever the city procures,” the statement said.
According to the city, much research went into the compilation of the report, and a comparative cost-benefit analysis was conducted of six other venues in the city that have similar offerings as The Pencil Club.
The city laid out the average cost for venue hire only per day at the following establishments:
• Moses Mabhida Stadium – R13 860
• Durban International Convention Centre – R25 000
• Max’s Lifestyle – R10 000 – R15 000
• Octavia Hotel – R25 500
• Oyster Box – R8 000
• Botanic Gardens – R8 500
“Based on the analysis, the costs associated with venue hire at The Pencil Club align with market standards and are competitively priced. The Pencil Club offers a total of six meeting rooms, with venue hire prices varying from R3 000 for a capacity of six people to R16 000 for a larger space accommodating up to 80 individuals. Furthermore, it is important to highlight that the utilisation of The Pencil Club would be occasional, dependent on budget availability, and in line with specific requirements and status of the clients being accommodated. The city also finds the headline used in the article nonsensical, as the report tabled made no mention of ‘whiskey and cigars’, nor would the city ever allow for such wasteful expenditure and gross indulgence at the expense of its residents”.
The latest Auditor General’s report found that the eThekwini Municipality had racked up R1.5 billion in irregular expenditure.
IOL