Shocking Service - No refunds

We booked into On the River in Gonubie through Booking.Com, and paid the full amount. When we arrived on the Sunday Afternoon, nobody knew about us, or the booking. The owner said he does not control the bookings and the people that did it "were in JHB". He also insisted the room was not ready, and said the booking was now cancelled by him. We managed to get another Guest house (not easy on a Sunday afternoon at 4pm!). We contacted booking.com, and after numerous communication we were told that "the venue had already been paid ". So no refund, no apology. Shocking that this is allowed to happen. I would NEVER recommend Booking.Com to anybody.