Swellendam Mayor Francois du Rand has formally responded to an open letter from the Swellendam People’s Association of Ratepayers Collective (SPARC), which raised serious concerns about the clarity and transparency of the Overberg Wind Farm’s Corporate Social Investment commitments.
Du Rand’s response acknowledges public frustration, but maintains that the Municipality acted honestly and within its limited role.
Open Letter Triggers Call for Clarity
SPARC’s open letter highlights what it describes as conflicting messages from municipal officials during a 29 October public meeting. Residents were told that the project had no CSI because it sits on private land, that it was too early for CSI to exist, and later that CSI does exist but that details would only be available in future.
The group argues that these contradictions undermine trust and do not align with national norms in the renewable energy sector. SPARC also cites public statements from the Development Bank of Southern Africa confirming a community trust linked to the Overberg project. The organisation is demanding full disclosure of the trust structure, its beneficiaries and expected financial commitments.
Du Rand: Information Provided Was Accurate at the Time
In his response, Du Rand defends the Municipality’s role and rejects the suggestion that officials misled the public.
“We gave the best information available to us at the time and we did so honestly,” du Rand said. “Red Rocket’s formal response supports this.”
According to the Mayor, the Municipality relied on information supplied by Red Rocket South Africa, the project developer, and did not intentionally provide inconsistent explanations.
Key Issue: Overberg Is Not a REIPPPP Project
A central point in the Mayor’s response is that the Overberg Wind Farm is a private embedded-generation project. It does not fall under the national REIPPPP framework, which normally mandates structured CSI, community trusts and early disclosure of beneficiary models.
“Because this is not a government-procured REIPPPP project, it does not automatically come with the same CSI requirements that communities are familiar with,” du Rand said.
This distinction, the Municipality argues, explains the absence of standard CSI information at the time of the public meeting.
Trust Exists, But Funding Will Only Flow Later
Du Rand confirmed that the Red Rocket Opportunity Trust does exist, but stresses that no CSI money is currently available.
“The Opportunity Trust exists, but there is no immediate money available for community spending,” he said. “The project has to become operational and financially stable before funds flow to the Trust.”
Red Rocket has informed the Municipality that funds will only become available once the wind farm is generating income and repaying major loans, including financing from the DBSA.
Municipality Says Its Powers Are Limited
Du Rand emphasised that the Municipality is not a contracting party to the project and therefore cannot commit to CSI amounts, timelines or programme details.
“We cannot commit to CSI amounts or deadlines on behalf of a private developer,” he said.
The Municipality’s role, according to Du Rand, is limited to ensuring proper approvals, protecting residents where municipal services are involved and advocating for maximum local benefit.
Municipality Calls for Transparency From SPARC
While responding to SPARC’s questions, the Du Rand also asked the organisation to clarify its own mandate and membership.
“We welcome accountability, but we must all be transparent,” du Rand said. “We have asked SPARC to provide clarity on who it represents and how it operates.”
Core Questions Still Unanswered
Du Rand’s response confirmed several facts; including that the trust exists and that CSI will only flow during the operational phase, but it leaves key issues unresolved.
These include:
• Why the trust’s governance documents have not been released
• Who the intended beneficiaries are
• Why public statements from the DBSA appear to conflict with the “too early” explanation
• Why Swellendam residents have less information than communities hosting other private wind farms
For now, the Municipality maintains that it acted appropriately based on the information it had. SPARC maintains that the required information should already exist and that the public has a right to see it.
