By Anita Dangazele
- Nelson Mandela Bay might lose R260 million meant for basic services because it failed to spend the money in time.
- The city has only spent 40% on smaller grants and 45% on bigger ones, putting development projects at risk.
Nelson Mandela Bay faces losing R260 million in government money because it failed to spend it on fixing the city.
For three years running, the metro has not spent the minimum amount required from its grants by the December deadline.
This money was meant for roads, electricity, water, toilets, and RDP houses.
The city has only used 40% of grants under R100 million and less than 45% of bigger grants.
Treasury’s acting deputy director-general, Ogalaletseng Gaarekwe, wrote to the city on 14 February. The metro has seven days to explain why it should keep the money.
If the city loses this case, it could stop important projects and scare away businesses looking to invest in the area.
Recently, local residents who were victims of the floods also lamented the lack of help from the flood disaster relief fund, despite the metro having been declared a disaster-hit area and receiving funds.
DA councillor Brendon Pegram said he wasn’t surprised the metro might lose the money again.
“This lack of change is unsurprising, given that the shift in political leadership merely rearranged the same ineffective individuals into different positions. Rearranging the deck chairs on the Titanic would never have halted the metro’s further decline,” he said.
In October 2024, Deputy Mayor Gary van Niekerk, who faces fraud charges, swapped jobs with Babalwa Lobishe to become mayor.
Pegram said Mayor Lobishe has failed to come up with a proper plan to fix the spending problem.
Pictured above: NMBM Mayor Babalwa Lobishe.
Image source: NMBM Communication
