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The former Mayor of Maidstone passed away in Maidstone Hospital on Tuesday, after being admitted on Thursday the week before.
Mr D'Souza had suffered from diabetes for many years, which had led on to a heart condition and kidney failure.
Only a month ago, Mr D'Souza was thrown a party by members of the Maidstone Labour party to mark his many achievements in a long political career.
He served as a Labour borough councillor from 1996 to 2008, first for Bridge Ward and then for for Fant.
Coming to England originally from Goa, in 2003 he became Maidstone's first ethnic minority Mayor.
He was the founder of the Maidstone Mela, first held during his mayoralty, and was also a founding light and active supporter of the Fant Wildlife Group.
For his party, he was at various times, the chairman and treasurer of the Maidstone and the Weald Constituency Labour Party.
The current Maidstone Labour group leader, Cllr Paul Harper, said: "He was a great man, loved and respected across Maidstone. He did so much to promote multi-culturism and was an inspiration to so many."
Mr D'Souza's wife Karin came from Finland.
Tributes were being paid this week from across the party spectrum.
Cllr Dave Naghi (Lib Dem) said: "I knew him for many years as he used to work with my father at Tilling Stevens.
"Morel's death is a great loss to Maidstone. He was a real community person and loved his family."
Mike Fitzgerald, himself a former Independent Mayor of Maidstone, said: "Morel D'Souza was a lovely, lovely, man. A gentle ‘giant’ who brought the community together and with his Mela and helped us all appreciate and value diversity. He will be greatly missed, but never forgotten."
Mr D'Souza was 72. He leaves his widow, two children Carl and Jessica, and three grandchildren.
Cllr Fran Wilson, Leader of the Council, said: “Cllr Morel D’Souza was a warm, kind and generous man who was highly respected across all political parties.
“It was well known that he possessed a real passion for celebrating diversity within the community and was instrumental in the creation of the Maidstone Mela. His dedication and commitment to the residents he served and the charities that he worked hard to support in his Mayoral year (2003 – 2004) were, and still are, much admired. He will be greatly missed.
“On behalf of the council I would like to offer his family and friends our most sincere condolences at this sad and difficult time.”
Cllr Paul Harper, Leader of the Labour Group, added: “Morel was a role model for many generations of Maidstone people, his inspiration is to be seen around the borough and, in particular, his love of multiculturalism, Goa and Tottenham Hotspur.”