On 23 July 2013 a case of possible fraud violation of the Municipal Finance Management Act was laid by Councillor Ben Rheeder, Ward 12, with South African Police Commercial Crime Investigation Unit (The Hawks) against the Kouga Municipality regarding the management of the St Francis Bay sewerage levy.
Residents in St Francis Bay whose properties are not coupled to the water borne sewer system are billed with a sewerage levy on a monthly base.
Funds received by means of mentioned levy must be ring fenced and when more substantial funds have accumulated it must solely be used for extension of the St Francis Bay sewer system.
Since 2006 no extension was done to the sewer system and Kouga Municipality not showing the funds collected in their financial statements notwithstanding various request by the Ward Councillor.
The legal action is deemed to be the only way to secure the funds for St Francis ratepayers due to lack of responding to numerous requests to Kouga Municipality to rectify management of the levy.