The Nelson Mandela Bay Municipality is facing a political and financial storm after council officials tabled a proposal to write off R23 billion in unauthorised, irregular, fruitless and wasteful expenditure (UIFWE) accumulated between 2009 and 2021.
Opposition accuses coalition of rushing the write-off
Democratic Alliance councillor Gert Engelbrecht said the ANC‑EFF coalition used its majority on the Municipal Public Accounts Committee (MPAC) to fast‑track the proposal, denying members adequate time to scrutinise the supporting documentation. Engelbrecht told reporters the item appeared as a late addition to the MPAC meeting on 13 August 2026 and members were given only 30 minutes to consider the papers.
“The proposed write-off was presented at the Municipal Public Accounts Committee meeting on 13 August 2026 as a late item. Members were only afforded 30 minutes to consider the documentation regarding this write-off. A supporting affidavit exceeding 500 pages was not even presented,”
Engelbrecht criticised the decision to seek a lump‑sum write‑off rather than investigate each instance of UIFWE and apply consequence management, including the legally required reporting under the Municipal Finance Management Act (MFMA).
DA asks Auditor‑General and Treasury to investigate
The DA has formally asked the Auditor‑General (AG) and National Treasury to intervene. Opposition councillors argue that writing off the amount without forensic review would remove accountability for spending decisions spanning more than a decade.
Nelson Mandela Bay is one of South Africa’s eight metropolitan municipalities and includes the city of Gqeberha, Kariega and Despatch. The metro is a critical economic hub for the Eastern Cape and hosts major automotive, port and agricultural supply chains. Councillors warn that a write‑off of this scale has the potential to undermine both service delivery and investor confidence.
- Amount proposed: R23 billion
- Period covered: 2009–2021
- Key concern: Lack of Section 32 MFMA reports and insufficient time for scrutiny
Legal and governance questions
Engelbrecht pointed to the absence of legally required Section 32 reports under the MFMA, which should accompany any proposed write‑off to demonstrate the municipality has followed proper procedures, including attempts at recovery and steps taken for consequence management.
He said the coalition’s approach appears to prioritise expediency over accountability, and questioned why each UIFWE case was not investigated separately before any decision on write‑offs.
| Period | Proposed UIFWE write-off |
|---|---|
| 2009–2021 | R23 billion |
Implications for residents and services
Municipal councillors and governance experts have repeatedly warned that unresolved UIFWE erodes the financial position of metros, constraining their ability to maintain infrastructure and deliver basic services. In Nelson Mandela Bay, where service and financial challenges have been longstanding, councillors said the proposal risks further damaging public trust.
Opposition members called on the AG and National Treasury to step in to ensure compliance with financial management law and to mandate forensic enquiries where appropriate. They argue that external oversight is necessary to prevent opportunities for malfeasance to evade scrutiny through administrative decisions.
What happens next
The council process will determine whether the write‑off proposal proceeds, is deferred for further investigation, or is referred for external review. The DA has asked the AG and National Treasury to investigate the proposal and the process by which it was advanced, signalling a possible escalation to provincial and national oversight bodies.
For residents and ratepayers in Nelson Mandela Bay, the outcome will be closely watched: it could affect municipal creditworthiness, service delivery plans and the likelihood that officials are held to account for past financial governance failures.
Note: The details in this report are based on statements and reporting provided to councillors and the municipal committee process, including comments by DA councillor Gert Engelbrecht and reporting of the MPAC meeting on 13 August 2026.
