‘Enough is enough' – Saftu threatens mass protests over NMB public fund mismanagement

Daily Maverick

04-06-2025

The South African Federation of Trade Unions in Gqeberha said on Wednesday that it was 'deeply outraged, though not surprised' by the Auditor-General's damning findings on the Nelson Mandela Bay metro. The organisation has threatened mass action as a response to 'incompetence, mismanagement and a total disregard for working-class residents'.
The South African Federation of Trade Unions (Saftu) has threatened the Nelson Mandela Bay municipality with mass action to protest against what it has called the current coalition government's 'incompetence, mismanagement and total disregard for working-class residents'.
Saftu secretary Mziyanda Mcanda said a meeting had been held with the Speaker of Council, Eugene Johnson, who had promised to address their concerns.
But, he added, the latest Auditor-General's report on Nelson Mandela Bay was deeply shocking.
'The report confirms what workers, the unemployed and the poor have long known — that this municipality is being run into the ground by incompetence, mismanagement and a total disregard for working-class communities,' said Mcanda.
Grant spending
Despite being the only metro to receive the Regional Bulk Infrastructure Grant (RBIG) — a critical intervention aimed at improving bulk water and sanitation infrastructure — the municipality underspent the grant by 41%, according to this report.
'This is criminal negligence in a city facing chronic water insecurity and failing sanitation systems. Communities in KwaZakhele, Motherwell and Chatty continue to suffer water cuts and sewerage overflows, while the money meant to fix these issues lies idle due to so-called implementation challenges,' Mcanda said.
'Even more damning is the fact that 67% of senior management posts are vacant, the highest of any metro in the country. This leadership vacuum reflects a collapsing state — one that is either unwilling or unable to deliver even the most basic services. Workers inside the municipality are overburdened, demoralized and left without leadership or direction, while politically connected elites scramble for tenders and positions,' he added.
Motherwell housing project
He highlighted the plight of residents who had been promised housing through the Motherwell NU30 housing project, calling it 'another insult to our people'.
'The Auditor-General confirms that houses were approved for handover despite structural defects and no electricity. These are not homes; they are shells. People are being handed keys to hardship, not dignity.
This is a systemic crisis. It cannot be reduced to administrative failures; it is the direct result of a capitalist state that serves private profiteers and political elites, not the working class. While public money goes unspent or wasted, our communities suffer hunger, evictions, floods and disease,' he said.
Mcanda said the organisation wanted the urgent filling of senior vacancies with competent, accountable and community-oriented personnel. 'No more cadre deployment for corruption,' he added.
They are also demanding the institution of a forensic investigation into the RBIG underspending and NU30 housing project, 'with consequences for those responsible'.
He said they also wanted an emergency summit of affected communities, labour and civil society 'to chart a democratic, people-centred turnaround strategy for the metro'.
Saftu's concerns were also echoed in a letter by faith leaders in the metro which was sent to President Cyril Ramaphosa in May.
'Enough is enough. We will not allow this municipality to continue failing our people. If these demands are not urgently addressed, Saftu Gqeberha will mobilise for mass action,' Mcanda added.
DA says budget is morally indefensible
Meanwhile, the Democratic Alliance (DA) said the proposed 2025/26 Nelson Mandela Bay budget was unrealistic and morally indefensible, as it passes the buck to ratepayers to 'fund the mismanagement of our inept ANC-led municipality'.
In a pre-budget press conference held on Wednesday, Odendaal said the metro was haemorrhaging millions of rands due to its inability to spend grant funding.
The budget will be discussed in a council meeting on Thursday.
'Over the last two financial years, the ANC-led administration's dysfunction has lost a staggering R900-million in grant funding meant to build roads, and water and electricity infrastructure.
'This inability to spend is a crisis and, as of April this year, the municipality had only spent 38% (R752-million) of its R1.934-billion capital expenditure budget.
'Against the backdrop of this continued mismanagement, the tariff increases in the budget are morally indefensible. Imagine losing money and then asking ratepayers to balance the books,' Odendaal added.
He further said that the budget as presented to council was only funded because it assumes a 76% collection rate while the average collection rate for the 2024/2025 financial year is 72.15%.
'Ward-based budgets are also a major concern as very little budget has been made available for certain wards. The DA believes every community has the right to a fair allocation of resources,' he said.
Executive Mayor of Nelson Mandela Bay Municipality, Cllr Babalwa Lobishe, held a mayoral member committee meeting on Wednesday to address the findings of the Auditor-General, and stressed the critical importance of enhanced planning and accountability within all departments.
She promised last week that she would address the vast underspending of Treasury grants at the city council meeting on Thursday.
'By Monday, a consultative report must be ready for virtual discussion to guide Wednesday's submission. With only three months left until the Auditor-General's review, we cannot afford to be caught off guard,' she said.
Departments have also been directed to review current contracts, identify possible risks and define clear actions to avoid repeated deviations or contract extensions.
'Changing our culture doesn't take time; it takes consistency. If we focus on efficient, daily execution, our teams will adapt and we will start seeing real progress,' she concluded. DM