R23 billion set to disappear into thin air in a South African city

The Nelson Mandela Bay Municipality plans to write off R23 billion in unauthorised, irregular, fruitless and wasteful expenditure (UIFWE).

The Democratic Alliance has asked the Auditor-General (AG) and the National Treasury to intervene in this matter.

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.

Nelson Mandela Bay councillor Gert Engelbrecht explained that from 2009 to 2021, the municipality lost R23 billion to UIFWE.

To avoid proper scrutiny and investigation on the unauthorised, irregular, fruitless and wasteful expenditure, the ANC and EFF joined forces.

The ANC and EFF coalition used its majority at a meeting of the Municipal Public Accounts Committee (MPAC) to rush the matter to the council.

Engelbrecht said they pushed the matter through without proper scrutiny and investigation into the R23 billion in question.

“The proposed write-off was presented at the Municipal Public Accounts Committee meeting on 13 August 2026 as a late item,” he said.

“Members were only afforded 30 minutes to consider the documentation regarding this write-off. A supporting affidavit exceeding 500 pages was not even presented.”

He said that the ANC and EFF coalition wants to write off more than a decade of accumulated UIFWE in a single lump sum.

He questioned why the municipality is refusing to first investigate each case and apply the required reporting, accountability, and consequence management.

“The most problematic issue is that the committee has not received the legally required Section 32 reports from the Municipal Finance Management Act (MFMA),” he said.

“Without these reports, the committee cannot see what the money was spent on or hold anyone to account.”

Engelbrecht said they have asked the Auditor-General (AG) and the National Treasury to intervene and ensure this R23 billion UIFWE matter is handled properly.

“This write-off cannot go to council, which sits on 25 August 2026, until the necessary oversight and investigative processes have been completed,” he said.