Four Million rand was transferred to the municipality account from the main Knysna relief fund.
It was later withdrawn and kept in a safe in the municipal office.
Knysna Mayor Eleanore Bouw-Spies said the deputy municipal manager told her the money was withdrawn to have funds available quickly to pay invoices and buy refreshments from vendors during meetings.
Only three people (the Mayor, Her deputy and the Municipal Manager) have access to the room, where the safe is kept and only two (the Mayor and her deputy) have the safe combination.
The safe was not broken or forced open and no one or CCTV cameras saw any burglars.
The rest of the money was found intact.
Who took the money?