The Nelson Mandela Bay Municipality faces suspension of its equitable share grant unless it meets National Treasury compliance demands by 30 April. Acting chief operations officer Lulamile Moolman confirmed the Treasury has started invoking Section 216(2) of the Constitution. Councillors clashed at a recent Municipal Public Accounts Committee meeting over document processing.
The National Treasury issued a letter on 8 December to acting city manager Lonwabo Ngoqo, mayor Babalwa Lobishe and CFO Jackson Ngcelwane, requesting key governance and financial documents within seven days. The municipality failed to respond, prompting the Treasury to begin withholding processes under Section 216(2) due to repeated non-compliance with financial management rules, particularly unauthorised, irregular, fruitless and wasteful expenditure (UIFWE).
At Thursday's Municipal Public Accounts Committee (MPAC) meeting, Lulamile Moolman stated that the Treasury aims to invoke the section, risking the city's equitable share allocation. "National Treasury has indeed started the process with the intention to invoke section 216 (2) of the Constitution, where, due to noncompliance with the Municipal Finance Management Act (MFMA), the City stands to lose a portion of its allocation," Moolman said.
Disagreement arose among councillors. ACDP's Lance Grootboom and DA's Gert Engelbrecht argued the documents should first go through MPAC for oversight. Grootboom noted, "The current report... did not serve before any committee for prior consideration and oversight."
ANC councillor Xolani Notshe and EFF's Siyabulela Mosi supported sending most documents directly to council, with MPAC handling only terms of reference amendments. Despite opposition, the amended terms were adopted. The deadline remains 30 April.
