An American-based company has taken over the site of the shuttered Fish River Resort despite its lease agreement being declared invalid.
The company says it will increase the capacity of the 126-room hotel to 250 rooms, revamp the Gary Player-designed golf course and build a water park.
The Fish River Sun closed in November 2017 after struggling for five years to stay afloat following the closure of its casino.
The casino’s gambling licence was reallocated to Gqeberha’s Boardwalk Casino in 2012.
The site has been the subject of a protracted land claim process, with the resort property and several surrounding farms eventually being awarded to the Prudhoe community trust.
However, attempts to find a suitable investor have been stymied by infighting in the community, with separate contracts signed with competing developers and the hotel left ransacked.
US investment group Joktel earlier in 2025 announced plans to reopen the dilapidated tourist resort, as Joktel Fish River Resort, by February 2026.
On Monday, Joktel held a sod-turning ceremony attended by stakeholders and businesses partners near Port Alfred.
Spearheaded by Gqeberha-based businesswoman Vuyokazi Batana’s company EzamaTshawe, the first phase of the projected R1.7bn total investment would see 60 locals, including former resort staff, employed for its refurbishment.
Joktel Group’s Kelvin Gibson said they had kept the Fish River name because of “the community and the history behind it”.
“We are demolishing everything and will expand upon the rooms, which are currently 126 rooms.
“We are pushing for about 250 rooms.”
Gibson said they were also planning a water park and new beach houses.
He promised the facility would be ready by February 2026 and urged tourists to book via its website.
This comes amid an ongoing investigation into the land trust following allegations of mismanagement and the resignation of two trustees.
This led the master of the Bhisho high court in May to appoint attorneys Vimba & Associates to manage the trust’s assets and investigate its affairs.
Batana entered into a lease agreement for Maitland Farm on December 9 and Fish River on December 11 2024, on the same day businesswoman Xoliswa Daku, of the Daku Group, received a notice of termination of her contract to develop the site with a Dubai-based consortium.
The trust had signed a lease with Daku on November 1 2024, which was terminated over an alleged breach of contract.
The termination letter claimed Daku had failed to fulfil her obligations.
She challenged this, claiming the termination was unlawful.
On Tuesday, Daku referred questions to her legal representative, Mande Ndema of Mdyesha Ndema Attorneys, who said Daku had “no knowledge whatsoever of the ceremony or construction-related activities reportedly held at the Fish River property”.
“Our client wishes to clarify that she is not involved in and will not comment on any agreements or activities relating to EzamaTshawe.
“Her involvement has always been grounded in legally recognised processes and the need to ensure that trust property is administered in accordance with the trust deed and the law …
“Ms Daku has instructed us to prepare an urgent court application to protect the trust assets.”
Ndema said Daku disputed the finding that her lease was invalid as she held a “lawfully signed agreement, supported by resolutions adopted at a properly constituted meeting of trustees in full compliance with the requirements of the trust deed”.
Daku had roped in multinational hotel group The Lux Collective, together with investors from Dubai, with the hope of making it the flagship of their SA portfolio.
Community members, who did not want to be named, distanced themselves from Joktel’s ceremony. “She [Batana] told the community to attend the ceremony and said the court processes were derailing her.
“For us, our hands are tied because Vimba is in charge of this until the court gives it back to us.
“She is acting on her own will.”
Another one said: “The strategy here is to trick people with employment. Again and again it has been that way.”
In June, EzamaTshawe applied for an interdict in the Bhisho high court to challenge Vimba’s appointment, accusing the company of having conflicting interests and being unfit to handle the trust’s assets.
It said the ruling put its partnership with Joktel at risk.
Vimba Associates director Ntandazo Vimba said their power of attorney duties had lapsed and their recommendations had been lodged with the master of the court in June.
Vimba said both contracts signed by Batana and Daku had been declared invalid.
“They were appointed through the mobilisation of the community and not legally as per norms of the trust.
“What they are doing is unlawful and it is a shame that police did not do anything.
“A new board was elected. However, it can only assume its duties once the master of the court issues them with letters.
“They will restore order to the chaos,” he said.
In response, Batana said the court was slowing the process and stalling the project.
“The people have to work. We had a signed lease agreement and we are moving forward with our project,” she said.’
