Parliament, Thursday, 26 March 2026 – The Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) on Wednesday expressed grave concern about governance, financial management and contract oversight in the Nelson Mandela Bay Metropolitan Municipality (NMBM) and the impact of these on service delivery to residents.
The committee, along with some members of the Standing Committee on Public Accounts and the Standing Committee on the Auditor-General, met with the leadership of the municipality on Tuesday and Wednesday following an oversight visit in October last year. The meeting formed part of Parliament’s ongoing oversight of the municipality. It also followed a series of follow-up correspondence in which the committee had requested additional information on several serious concerns, most of which the municipality did not respond to.
These requests include additional information on so-called evergreen contracts (contracts that are renewed without a competitive tender process), the municipality’s poor performance in spending conditional grants and the quality and timeliness of information submitted to Parliament. The follow-up requests were all framed within broader concerns about internal accountability and decision-making in the municipality.
The committee noted that several matters before it remain unresolved and that the information provided by municipal leadership during the engagement was incomplete, inconsistent or insufficient to allow proper parliamentary oversight and accountability. The Chairperson of the committee, Dr Zweli Mkhize, said, “This has been one of the most problematic interactions, from the initial correspondence up to now. Just with the request for information, we spent almost half of the session discussing the problem of communication with the Office of the Mayor.”
The Chairperson said the committee could not accept a situation in which Parliament is repeatedly forced to request the same information without receiving a full and coherent response. “This committee cannot properly exercise its constitutional oversight responsibility if information is delayed, incomplete or contradictory. That undermines accountability and weakens public confidence in governance,” he said.
Evergreen Contracts and Unspent Grants
One of the committee’s major concerns relates to the municipality’s handling of contracts identified for further scrutiny. Members were informed that approximately 22 contracts still require detailed interrogation. The committee noted that the number of contracts requiring further examination is itself a matter of concern and that the process followed thus far has not provided Parliament with sufficient clarity on the circumstances surrounding those contracts. “This is not normal within a government procurement system,” the Chairperson said.
Members were particularly concerned about the municipality’s continued underspending on conditional grants. It is estimated that about R1.2 billion in unspent grants had been returned to the National Treasury. The committee noted that, amid significant infrastructure backlogs, funds are available that are not being spent, with serious consequences for residents living with inadequate sanitation, poor roads, water interruptions and delayed human settlements projects.
“Neither the Mayor nor the City Manager can expect sympathy from this committee if the argument presented is that you are unable to act,” the Chairperson said. “If the reality is that you have staff, budget and an identified need, but still cannot implement, then this raises fundamental questions about governance, leadership and whether you should continue to hold the positions you occupy.”
The committee also highlighted challenges in how the municipality operates. Members noted apparent weaknesses in communication, poor coordination between the political and administrative leadership, vacancies in key senior positions and the continued difficulty in producing basic supporting information requested by the committee. At several intervals, committee members warned the municipal leadership delegation that misleading Parliament is a criminal offence, as some of the information they provided appeared unreliable.
Formal Summonses May Follow
The committee agreed that, going forward, it will not accept general or vague explanations and will insist on measurable corrective action. It directed the municipality to submit a detailed written turnaround plan that outlines how it will improve its grant spending, better manage contracts and projects, address human resources constraints and strengthen accountability measures. The municipality must also submit detailed written reports on all outstanding matters raised during the meeting. This must include further information on evergreen contracts, unauthorised and irregular expenditure, service delivery failures and how it is responding to findings of the Auditor-General and the Special Investigating Unit, where relevant.
The committee resolved to call the municipality back for further engagement once the necessary documentation has been received and assessed. The Chairperson emphasised that the follow-up engagement will be more focused and exacting and that the committee expects all relevant officials to be present with verified information.
The committee emphasised that it will not allow delays or continued non-cooperation to impede its oversight and will use all available parliamentary mechanisms to ensure accountability. This includes approaching the Speaker of the National Assembly to issue formal summonses for information and for all the relevant officials to come and account. The Chairperson said that, if approved, the summonses will be delivered by the Sheriff, and any deviation may constitute a criminal offence. “The committee has the authority of Parliament to ensure accountability, and we expect cooperation. In the absence of that cooperation, we will not hesitate to use the remedies at our disposal,” Dr Mkhize said.
The committee noted that exercising oversight is not intended to be punitive, but corrective. The aim is to support and drive improvements in governance, strengthen accountability and ensure communities receive the services to which they are entitled. “The committee will pursue this matter until there is clear evidence of correction, credible reporting and improved delivery,” said Dr Mkhize.
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS, DR ZWELI MKHIZE.
For media inquiries or interviews with the Chairperson, please contact the Media Officer:
Name: Alicestine October
Cell: 083 665 4345
E-mail: aoctober@parliament.gov.za
Arrange a tour