10/04/2025
The Witness This is a very dissappointing, inaccurate report:
The Truth Behind The Matter
In March 2024 it was publically announced by UMEDA that the District Municipality had allocated R500 000 to be distributed to CTOs in the District.
It took one year to dispurse these funds after numerous follow ups with UMEDA throughout the year with dates constantly being shifted, which pushed into 2025, one year later.
3 weeks prior to the cheque handing over ceremony a meeting was held with CTOs to verify their status with their local municipalities. When asked how much was expected the CTOs were told to divide the amount by seven municipalities.
The matter was raised that there were only 5 out of 7 CTOs established.
A formal email was sent from Umeda stipulating the CTOs needed to submit the following documentation in order to qualify for the funding:
Municipal endorsement Letter
EDTEA KZN CTO registration
Proof of bank account
A business plan
On a verification request made to the Department of EDTEA it was recorded that only 4 CTOs were in fact in good Standing, Richmond Tourism Organisation Mkhambathini Tourism Organization and Boston, Dargle, Impendle Tourism - Explore the Unexplored
The report showed The Msunduzi Municipality was in legal dispute with the Msunduzi Pietermaritzburg tourism Association CTO due to AG findings and should not be allocated funding.
2 Days before the ceremony was held, CTOs were informed to submit an invoice to UMEDA for R55.5k. On querying the amound CTOs were informed that there were 9 CTOs.
This matter was contested and the District Mayor made aware of the discrepancy. It was then disclosed at the meeting that this was also including emerging CTOs despite the title of the program and all communication stating: CTO funding Support.
Funds were allocated to Mshwati and Mpofana Municipalities who have no CTOs established, a second CTO for Msundusi called Maritzburg CTO as well as a private tourism entity The MMA.
The KZN CTO strategy which has been signed off by the MEC of Tourism, was not implemented as the article so puts, in accordance with NO7 of the strategy.
FYI The UMgungundlovu District Municipality is not a metropolitan and has 7 local municipalities it may NOT have more than 7 CTOs. pg 19 of the KZN CTO strategy refers:
ESTABLISHMENT AND FORMALIZATION OF A CTO
CTOs must be established as autonomous organisations owned and managed by tourism business owners operating within the jurisdiction of a metropolitan municipality or a local
municipality.
It may also be established at a district level with the coming together of local
CTOs to establish a district CTOs and such a structure must be recognised by the district municipality.
The CTOs must be officially established by a municipality and handed over to the private sector for its overall functions, management, and operations. The CTO can also be established by individual business owners within the jurisdiction of a given municipality coming together to establish a CTO structure. However, that structure must be officially recognised and acknowledged by the municipality.
This is to prevent the mushrooming of
dual or multiple structures that can lead to industry fragmentation, disharmony, and unhealthy competition over private and public resources.
All CTOs that are officially recognised by their municipalities, must register with the provincial tourism authority, (KWAZULU-NATAL TOURISM AND FILM AUTHORITY),
through EDTEA as per the existing provincial regulations. This registration is a mandatory requirement without which a CTO would be deemed to be operating illegally.
Mayor Mzi Zuma says that there has not been a specific focus on community tourism organisations for some time.
