On Tuesday the DA in Mpumalanga released a statement calling on the Mpumalanga MEC for public works, roads and transport, Mohita Latchminarain, to save 55 jobs by presenting a rescue plan for the 127-year-old Royal Hotel in Pilgrim’s Rest.
According to Bosman Grobler, the DA MPL and spokesperson for finance and economic development, Sammy Makgoba, the acting CEO of Mpumalanga Regional Training Trust, said the Royal Hotel could be closing its doors after 127 years. This will also affect its 55 employees. “While responding to the select committee on public accounts (Scopa) questions, Makgoba stated that the hotel had incurred a net loss of R770 702 and R3 140 956 for the financial year 2019/20.
There has been a growth of 307 per cent on the net loss year-on-year.
“Makgoba further stated that the hotel’s ability to pay its short-term obligations is progressively reducing year-on-year and its current assets are less than its current liabilities, which is a further indication that the hotel is insolvent,” he said.
“The DA warned the then premier, David Mabuza, in 2012 of the potential impact that the bid awarding process of leases in Pilgrim’s Rest will have on this historic town’s sustainability, job security of employees and tourism to the greater Panorama area.
The DA wrote to the former premier and urged him to ensure government’s commitment to the protection of this historical town’s heritage,” said Grobler.
ALSO READ: GRIP hopes to see change in DNA backlog
“Little was done by the Mpumalanga government to protect this historical town since 2012 and even now the Department of Economic Development and Tourism assisted with the marketing and advertising of Pilgrim’s Rest as well as the provision and installation of notice boards on the roads,” he explained.
ALSO READ: Barberton charity working to empower women
“Although interventions were implemented, they did not yield positive results on the challenges the town face. In the next sitting the DA will deliver a motion without notice asking the house to adopt the motion where Latchminarain should present a rescue plan for the Royal Hotel and Pilgrim’s Rest at large,” he concluded.
