Urgent intervention needed as NMB crisis deepens

Urgent intervention needed as NMB crisis deepens

The current inept coalition government of Nelson Mandela Bay, with Mayor Gary van Niekerk at the helm, has crippled the Metro and is driving it toward bankruptcy. Basic services have ground to a halt, business confidence has plummeted, and hundreds of millions in grant funding remain unspent.

The residents of Nelson Mandela Bay are feeling the devastating impact of the political instability, policy uncertainty and lack of leadership under Mayor Van Niekerk. When businesses lose confidence and disinvest, people lose jobs, and in a province with the highest unemployment rate in the country, we can’t afford to lose any!

Despite already forfeiting R430 million in grant funding this financial year due to the municipality’s inability to spend its budgets, the Metro appears to have taken no decisive action to rectify the delays and spend the grant funding still available. To date, the Metro has only managed to spend 69% of its capital budget and risk forfeiting even more funding.

Although an Acting Municipal Manager, Mandla George, has been seconded to the City by the Department of Cooperative Governance and Traditional Affairs (CoGTA), the situation in the administration remains dire. There are currently at least six Executive Director vacancies. To make matters worse, the officials appointed as acting directors have exceeded the period allowed to fulfil the role. Any actions taken after their appointment as acting director expires can be deemed unlawful.

The electricity department is a significant concern, as severe mismanagement has resulted in a 250% increase in financial losses year-on-year, equating to R1,44 billion. The department’s rapid financial decline is a severe threat that can potentially bankrupt NMBM.

Nelson Mandela Bay is the engine room of the Eastern Cape. If we fail to get the Metro back on track, we will battle get the economy of the Eastern Cape, which is currently in recession, going again.

Political stability needs to be prioritised so that economic stability can be achieved. This is what creates an environment conducive to economic growth and job creation.

Against this backdrop, the Democratic Alliance (DA) will, over the next couple of weeks, approach the provincial and national departments of CoGTA, and the National Treasury regarding critical issues of governance failures. We will request several crucial government interventions to support and strengthen the Metro to manage its affairs.

As a first step to remedy the situation, I will write to the new Acting City Manager, George, advising him of the most pressing matters that require his attention.

The areas highlighted are:

  • Section 154 support in respect of key directorates such as Safety and Security, Electricity and Energy and Infrastructure and Engineering.
  • Fast tracking the filling of no less than six Section 57 employee vacancies.
  • Supporting and overhauling of the Supply Chain Management Directorate.
  • Addressing the corruption charges against the Executive Mayor Gary van Niekerk.
  • The removal of the Mandela Bay Development Agency (MBDA) board as per the advice from Finance Minister Enoch Godongwana.
  • The removal of Anele Qaba as MBDA CEO.
  • Turnaround plan for the Electricity and Energy department running at a R1,4 billion loss.
  • Addressing the dysfunctionality of the Municipal Public Accounts Committee (MPAC).

The situation in Nelson Mandela Bay is dire, and the DA cannot stand back and allow this coalition government to collapse our Metro and deprive its residents of the services they deserve.

The DA is in your corner, fighting for you. Together, we can rescue Nelson Mandela Bay.

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