South Africa: Fish River Resort Looters Want Investors Back

The looters who plundered the Fish River Resort in April are calling on investors to help restore the establishment.

The once-upmarket seaside resort was looted by the unhappy group from the Prudhoe Community who vandalised and looted the seaside establishment. The group allegedly came in bakkies and drove off with TV sets, computers, beds and fridges. They also stripped two vehicles which belonged to the resort.

The resort on the R72 near Port Alfred, Eastern Cape landed in the hands of the Prudhoe Community Trust after a 23-year land dispute between the Prudhoe and the Amazizi communities.

The Supreme Court of Appeal in June 2020 upheld the landmark decision by the Land Claims Court to award a large portion of land, including the Fish River Resort, to the Prudhoe community.

The Department of Agriculture, Land Reform & Rural Development (DALRRD) bought the business from its owners in 2018, and in March 2021 the resort was officially transferred to the trust.

Community leader and head of the trust, Gladman Tom, said last month that they were disappointed that the government handed over a massive property without any proper support or skills to run the establishment.

However, Tom confirmed disagreements within the trust were the main contributor to the demise of the once-thriving holiday destination.

The trust had signed a 49-year lease agreement with investors, MahalaX, with the assistance of the Legal Resources Centre.

MahalaX had intended to invest R500 million to upgrade the resort, including the creation of the world-class Fish River Studios, where filming would bring in extra income.

However, In August 2022 some Prudhoe community members staged a protest and evicted an international film crew after disagreements over rent.

Community member Masixole Kom said the trust had not been transparent with the community about the terms of the lease agreement.

"When MahalaX arrived at the property, we were told the lease would be for 10 years, but we later found out it was 49 years. We were not happy with the conduct of MahalaX over rental fees," said Tom.

"Other disagreements were because the trust was not transparent with us as community members. We were not getting the reports we wanted."

The previously divided Prudhoe community said they have now buried the hatchet.

"We are all on board and we are calling on investors to come and partner with us," Tom said.

He said since the looting incident the trust has been approached by three companies wanting to invest in the ruined resort.

"We have decided to go into a process of inviting investors to partner with us. We want the resort to be up and running because it has a lot of potential," he said.

Department of Agriculture, Land Reform and Rural Development spokesperson Reggie Ngcobo said after the break-in they hired a security company.

"The security company will safeguard the resort for six months until the end of November," Ngcobo said.

"We are hoping the six-month period will give the community enough time to find a plan for a viable business for the resort."

He said they can't make decisions on behalf of the trust because it is private land.

Pictured above: The once-plush Fish River Resort near Port Alfred, Eastern Cape

 

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