The owner of the Frontier Country Hotel is determined to have the hotel's electricity disconnected. Savva Koushis has gone head to head with local businessman Lungile Mxube over the hotel's mounting electricity debt.
The owner of the Frontier Country Hotel is determined to have the hotel's electricity disconnected. Savva Koushis has gone head to head with local businessman Lungile Mxube over the hotel's mounting electricity debt.
Koushis has accused his tenant, Mxube, racking up a debt of more than R500 000 for water and electricity to the municipality since 2011. According to Koushis, the hotel side of the building is leased to Mxube to run as a hotel or accommodation facility.
Koushis told Grocott's Mail that all expenses are supposed to be covered by Mxube, excluding rates and taxes, which the landlord pays. Koushis claims that Mxube opened an account in his company's name without his knowledge.
In an email, Koushis said as the property owner he had only given permission to open the electricity account and was not aware that Ringofon, which he owns and directs, would be considered the client. He claimed the account was opened in September 2011 and he had given no written authorisation to Makana for the electricity account to be opened.
"We approached the municipality when we discovered that the account was in arrears [of]around R100 000 but they informed us that the matter [had]been resolved." He said he was alarmed to discover in June that the account was in arrears of more than R500 000. Mxube dismissed Koushis's claims.
In an interview with Grocott's Mail on Wednesday, he said he had made arrangements with the municipality a long time ago to pay his bill. Koushis said they were informed that Mayor Zamuxolo Peter had given permission for Mxube's repayment term to be extended.
"[Mxube] always informed us that we need not to worry – the account is under control and that the Mayor is assisting him regarding the matter not to have his account suspended and disconnected," Koushis said in his email.
"This was a great shock to us and [we]have [in]the past [three]months been in a struggle with the municipal Finance department to have the electricity disconnected," he said. Responding to questions about the account, Makana municipal spokesperson Yoliswa Ramokolo said there were a lot of people who owed the municipality for services.
"Why only pick on him? There are a lot who owe us and they make arrangements with us to pay of their debt," she said.
"Mr Mxube is one of them. He made an arrangement to pay." Ramokolo said Mxube had paid R 83 000 to decrease his bill, but would not comment on who else owes them for services.
"I cannot divulge information about accounts to the media," said Ramokolo.
