The oversight engagement conducted by the Parliamentary Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) in May 2026 has laid bare a grim reality: Nelson Mandela Bay (NMB) Metropolitan Municipality is in the throes of a systemic collapse.

Led by Chairperson Dr. Zweli Mkhize, the committee’s findings reveal a metro where governance is absent, financial controls are non-existent, and the residents are the ultimate casualties of a war of political attrition.

A Leadership Vacuum and Administrative Paralysis

At the heart of the municipality’s dysfunction is a leadership crisis that has moved beyond mere vacancy into the realm of legal absurdity. The City Manager (CM), the primary accounting officer responsible for the city’s multi-billion rand budget, has been on suspension with full pay since 2024.

The financial cost of this suspension—over R6.7 million—is staggering, but the institutional cost is higher.

The committee discovered that the municipality currently has no acting City Manager at all. In a move that signals the toxic nature of the environment, the Chief Financial Officer (CFO) reportedly declined to step into the acting role.

This creates a “governance gap” of unprecedented proportions. Without a legally appointed accounting officer, the validity of every contract signed, every payment authorized, and every disciplinary action taken during this period is on shaky legal ground. The municipality is essentially an aircraft flying without a pilot, while the crew argues over who should hold the controls.

The Hollowed-Out Executive

The decay extends far below the office of the City Manager. Of the seven critical Executive Director positions—those responsible for essential portfolios like infrastructure and electricity—five are currently vacant.

The committee’s interrogation revealed that many of these departments are being run by acting officials without proper council authority. Dr. Mkhize’s warning was clear: this is not just “red tape.” It is an invitation for legal challenges. If an unauthorized official makes a decision that impacts a private contractor or a citizen, that decision can be set aside by a court, potentially costing the city millions more in litigation and damages.

“Evergreen” Contracts and Financial Maladministration

Perhaps the most damning evidence of corruption or gross negligence lies in the municipality’s procurement history. The committee identified several “evergreen contracts”—procurement agreements that have been extended for over a decade without being subjected to a competitive bidding process.

Under the Municipal Finance Management Act (MFMA), such extensions are generally irregular. They stifle competition, prevent the city from seeking better pricing, and often serve as a mechanism for “tenderpreneurship” where specific companies are shielded from the market indefinitely.

Coupled with this is the staggering R1.7 billion in irregular expenditure that the Municipal Public Accounts Committee (MPAC) has attempted to “write off.” A write-off should be the end of a rigorous process of consequence management, yet the committee found little evidence of criminal referrals or attempts at recovery. The message from the metro leadership was one of “moving on,” but the Portfolio Committee has instead demanded a granular report on every cent, effectively signaling that the era of blind amnesties is over.

The Human Cost: Buckets and Withheld Billions

While the boardrooms of the metro are filled with legal disputes and political posturing, the streets of Nelson Mandela Bay reflect the physical manifestation of this failure.

The National Treasury has moved to withhold over R278 million in grant funding from the 2025/26 budget. These are not discretionary funds; they are earmarked for:

– Informal Settlement Upgrading:Improving the lives of the city’s most vulnerable.

– Urban Settlements Development: Building houses and basic infrastructure.

– Regional Bulk Infrastructure: Ensuring the long-term viability of water and electricity.

Treasury withholds these funds when a municipality proves it is incapable of spending them effectively. It is a tragic irony: a city with 4,000 households still using the undignified bucket system is losing hundreds of millions of rands because it cannot manage the projects required to install pipes and toilets.

The Shadow of Factionalism

Dr. Mkhize did not mince words regarding the root cause: political factionalism. In a coalition-led environment, the municipality has become a battlefield where staff appointments are used as political patronage.

When political parties prioritise their “slice of the pie” over the professional qualifications of senior management, the result is the appointment of “acting” officials who lack the authority or the expertise to move the city forward.

The Chairperson’s admonition that “coalition partners had a responsibility to the same residents” serves as a reminder that the social contract in Nelson Mandela Bay has been broken.

The Road Ahead: Accountability or Intervention?

The Portfolio Committee has set a series of aggressive deadlines. Within one month, the MEC for COGTA must resolve the leadership impasse, and the National Treasury will receive a referral for a forensic investigation into the metro’s contracts.

The analysis of Nelson Mandela Bay in 2026 is a cautionary tale for all South African metros. It demonstrates that when governance collapses, it does not happen in a vacuum—it leads to a cascade of financial loss, legal vulnerability, and a total cessation of service delivery.

The municipality is no longer just in a “recovery” phase; it is in a fight for its institutional life. Unless professional standards replace political patronage, the “Bay” risks becoming a permanent monument to municipal failure.

Article based on the report by the Parliamentary Portfolio Committee on Cooperative Governance and Traditional Affairs