I had a feeling, that folding is an override (maybe came pre packaged with your template?) and is using old code. The code inside it needs to be updated or you can try renaming the folder to something like mod_coalawebnewsold and if you are happy with the way the CoalaWeb News module displays without it you can leave it renamed or remove it.
Hi! I'm Steve the founder and head developer of CoalaWeb design studios. I'm an avid supporter of open source projects and the GPL license.