The National Treasury has blocked the July equitable share payment to the Nelson Mandela Bay Metro. The R500-million transfer was halted along with payments to 59 other municipalities to enforce fiscal discipline.
On Tuesday the National Treasury announced the decision, citing persistent non-compliance with the Municipal Finance Management Act despite prior support. Nelson Mandela Bay has the highest Unauthorised, Irregular, Fruitless and Wasteful Expenditure figure in the country.
Metro politicians responded with mutual accusations. ACDP councillor Lance Grootboom condemned the ANC-led coalition for shielding officials and hiding R1.1-billion in investigation files from the Municipal Public Accounts Committee. Deputy executive mayor Gary van Niekerk blamed mayor Babalwa Lobishe for distraction and inaction.
MPAC chairperson Luxolo Namette said officials had failed to submit required reports. DA councillor Brendon Pegram expressed concern over service-delivery impacts while noting the intervention was unsurprising. The municipality stated it would respond at an appropriate time.
The Treasury described the measure as corrective and short-term. Funds will resume once municipalities submit plans showing at least a 25% reduction in irregular spending by 30 September.