Parliament’s Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) has signalled a tougher stance on governance failures at the Nelson Mandela Bay Metropolitan Municipality (NMBM), warning that continued non-compliance could trigger formal summonses.
The warning follows a two-day engagement between the committee, supported by members of the Standing Committee on Public Accounts and the Standing Committee on the Auditor-General, and municipal leadership. The session formed part of ongoing parliamentary oversight after an October 2025 visit and multiple unanswered requests for information.
Committee Chairperson Dr Zweli Mkhize described the engagement as deeply unsatisfactory, citing incomplete, inconsistent and delayed responses from the municipality. He noted that persistent communication failures, particularly with the Office of the Mayor, have significantly hindered Parliament’s ability to exercise effective oversight.
“This committee cannot function if information is repeatedly delayed or contradictory. It undermines accountability and weakens public confidence,” Mkhize said.
Procurement and grant spending under pressure
Key concerns centre on procurement practices and the municipality’s inability to spend allocated funds. Approximately 22 contracts, including so-called “evergreen contracts” renewed without competitive tender processes, remain under investigation. The committee flagged the scale and lack of clarity around these contracts as highly irregular.
Equally concerning is the municipality’s continued under-expenditure of conditional grants. Around R1.2 billion has reportedly been returned to National Treasury, despite significant infrastructure backlogs.
For the Eastern Cape economy, this reflects more than administrative inefficiency. Underspending delays critical infrastructure delivery, limits opportunities for contractors and suppliers, and constrains broader economic activity in a metro already under pressure to attract investment.
Mkhize was direct in his criticism: “Where there are resources, personnel and clear needs, failure to implement raises serious questions about leadership and governance.”
Institutional weaknesses persist
The committee also pointed to systemic weaknesses within the municipality, including poor coordination between political and administrative leadership, vacancies in key senior posts and an ongoing inability to provide basic supporting documentation.
Members further cautioned municipal officials that misleading Parliament constitutes a criminal offence, noting that some of the information presented during the engagement appeared unreliable.
Turnaround plan required
COGTA has now directed the municipality to submit a comprehensive turnaround plan detailing how it will improve grant spending, strengthen contract management, address human resource gaps and enhance accountability mechanisms.
In addition, the municipality must provide full reports on outstanding issues, including irregular and unauthorised expenditure, service delivery failures and its response to findings by the Auditor-General and the Special Investigating Unit.
The committee will reconvene with municipal leadership once the documentation
has been reviewed, with expectations of a more focused and evidence-based engagement.
Summonses an option
In a clear escalation, the committee indicated it may request the Speaker of the National Assembly to issue formal summonses compelling officials to appear and provide information. Non-compliance with such summonses could constitute a criminal offence.
“The committee has the authority of Parliament to ensure accountability, and we expect cooperation,” Mkhize said. “In its absence, we will not hesitate to act.”
While adopting a firmer tone, the committee emphasised that its objective remains corrective – to stabilise governance, restore accountability and ensure effective service delivery.
For Nelson Mandela Bay, the outcome of this process will be closely watched, with implications not only for municipal performance but also for investor confidence and economic recovery in the region.
