By David Macgregor

The Grahamstown High Court on Friday granted an urgent interdict which limits construction work on a controversial R1.2 billion “eco” estate in Kenton-on-Sea in a high profile case involving the son-in-law of former First National Bank chief Chris Ball.

The decision was made pending the outcome of a costly civil lawsuit by the wealthy Kasouga holiday home owner who is challenging the legality of the nearby Kenton Eco Estate.

The application on behalf of Cape Town-based transport company owner Michael Fuller to cease all construction is based on alleged irregularities by provincial government, local municipal officials and the developers in rubber-stamping the project, despite several objections from affected parties.

Bringing the application, advocate Glenn Goosen, SC, told Justice Dylan Chetty how Economic Affairs, Environment and Tourism MEC Mbulelo Sogoni had “absolutely no regard” for a review he commissioned in March which slated the development.

Goosen argued the developers, Kenton Eco Estate Ltd and Blue Horizon Development (Pty) Ltd, were not entitled to do any work on the development following the start of roads, services and bulk infrastructure last month.

Explaining delays in bringing the court action, Goosen said Fuller had only got sight of the scathing review by East London-based Coastal and Resource Management (CRM) environmental consultants several months after it was given to Sogoni.

Initially “stonewalled” and refused documentation on the grounds he was not an affected party, the “smoking gun” was produced after Fuller used the Access to Information Act to view paperwork on the development.

Recommendations in the CRM report handed to Justice Chetty on Thursday include the withdrawal of the Record of Decision based on valid objections, a “flawed” and incomplete Environmental Impact Assessment study, a “fatally flawed” public participation process, pressure by the Ndlambe municipality to include the development in the urban edge of Kenton-on-Sea and “harassment and political pressure by officials and professionals”.

“The involvement of political figures to obtain approval and acceptance at all levels is unacceptable and will prove costly in the future. Each new developer will use his or her political influence to force the local authority to accommodate their developmental needs,” the report cautioned.

Goosen disputed argument by Fanie Grobler, SC, for the developers, that Fuller had adopted a “reckless approach” by only bringing the interdict after work had started.

“It cannot possibly be suggested the sequence of events are an abuse of the process of the courts. It is clear the applicant acted at all times in a prudent, cautious and careful manner,” Goosen said.

Outlining the size of the investment, Grobler argued the developers “would be rather stupid” to have already invested more than R100 million without proper approval.

More than 150 of the 330 stands of the resort had already been sold for R127 million and 10 percent of the money had been deposited, and any stoppages would result in the loss of millions because of time penalties.

“A lot of money started flowing. Against this background, the attitude (of Fuller) to the urgency is simply reckless,” Grobler said.

He said Fuller’s father-in-law, former First National Bank head Chris Ball, who also has a holiday home in Kasouga, had told a meeting in 2005 he “would do everything in his power” to prevent the development.

He also argued MEC Sogoni was not bound by the external review’s recommendations, which he claimed “could not say enough against the development.”

Both sides described Justice Chetty’s ruling that work be confined to just the roads and area adjacent as “a victory”.

Daily Dispatch