R31 billion disappeared into thin air at one of South Africa’s top cities

Irregular expenditure in the Nelson Mandela Bay Metro increased from approximately R21 billion to R31 billion over the last two years.

This raised serious concerns about the administration and financial management in this important municipality.

Nelson Mandela Bay Municipality is one of eight metropolitan municipalities in South Africa. It is located on the shores of Algoa Bay in the Eastern Cape.

The metro comprises the city of Gqeberha, formerly Port Elizabeth, the nearby towns of Kariega and Despatch, and the surrounding rural areas.

It plays a crucial role in the Eastern Cape’s economy and is the historic heart of the country’s automotive manufacturing industry.

It is also a premier maritime and export gateway, and a crucial hub for agricultural and mineral supply chains.

Despite its importance to the region, Nelson Mandela Bay Metro has been run poorly, with service delivery and financial problems.

The metro is grappling with a water crisis driven by a failure to maintain its distribution network. Water losses reached a record 60.39% between July and December 2025.

The electricity network in the area is also experiencing problems through a mix of infrastructure decay and rampant theft.

At the root of these physical service failures is a highly unstable administrative environment rife with governance problems.

The municipality achieved only 16.67% of its basic service delivery targets and only 33.33% of its financial sustainability goals.

The Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) expressed grave concern regarding the metro.

It pointed to poor governance, financial management, and contract oversight, and to their impact on service delivery to residents.

Rapid rise in irregular expenditure

The Eastern Cape MEC for Cooperative Governance and Traditional Affairs (COGTA), Zolile Williams, recently raised the alarm about irregular expenditure.

His findings showed that the administration and financial management of the Nelson Mandela Bay Metro (NMBM) are in freefall.

As of the end of the 2025 financial year, the Municipality’s total irregular expenditure reached R24 billion.

A year later, at the end of the 2026 financial year, it had grown to R31 billion. This is an increase of R10 billion in two years.

The Freedom Front Plus’ Bill Harington said the prolonged suspension of the City Manager, Noxolo Nqwazi, contributed to the administrative instability.

“The Nelson Mandela Bay Metro urgently needs decisive, stable leadership, as well as a permanent, competent Chief Financial Officer,” he said.

“It is vital to implement the Section 154 recommendations along with stringent consequence management.”

He added that officials responsible for irregular expenditure and maladministration should be personally held accountable.

“Without these fundamental steps, the Municipality’s administration and service delivery will show no marked improvement,” he said.

He explained that poor governance, lack of accountability, and political interference mean residents pay higher tariffs each year.

This, in turn, means that Nelson Mandela Bay Metro residents pay the price for an administration that has betrayed their trust.