Overflowing — a refuse transfer container placed in Seaview, Nelson Mandela Bay metro, had not been cleared since the week of 10 December until 5 January 2026, causing residents major concern. (Photo: Facebook) 
To prevent a city-wide refuse collection catastrophe, the Nelson Mandela Bay metro is proceeding with the urgent hiring of rubbish compaction trucks through a deviation despite National Treasury warning that contracts be advertised to curb irregular expenditure.
The deviation from normal supply chain processes comes after the metro’s long-term compaction trucks hiring contract expired towards the end of the 2024/25 financial year, with the metro failing to advertise the tender on time.
Contracts for the hiring of bulk refuse transfer containers placed in various communities and the supply and delivery of refuse bags also lapsed, and have been advertised, but have not been finalised.
The refuse trucks and bulk refuse container contracts entered into in 2022 were delayed due to the failure to approve amendments in the [contract] specifications by both the public health and budget and treasury directorates.
The metro has since initiated the process of hiring 35 refuse compactor trucks from nine suppliers for six months, while the three-year contract is being finalised.
An internal memorandum by acting executive director for public health Anna-Lisa Dyakala to acting city manager Lonwabo Ngoqo, dated 15 October 2025, for the extension of the refuse trucks and bulk refuse container contracts, confirms that the deviations could have been avoided.
/file/attachments/orphans/BuyeyeandDyakala1_923984.jpg "Nelson Mandela Bay political head of public health Thsonono Buyeye and the directorate’s acting executive director Anna-Lisa Dyakala (right), who wrote the memorandum motivating the deviation for the hiring of 35 compactors (Photo: Nelson Mandela Bay metro)")
“Specifications were amended to [include] some of the issues that were raised by the Auditor-General, particularly on the refuse compactor contract. This amendment process had to be approved by the then [acting] executive director for public health and the budget and treasury office,” wrote Dyakala.
She said this information had been presented for approval to both directorates a few months before the contract expired.
“This was done so that an item could be presented to the bid committee to ensure that by the time the contract expired, a new one would be in place which will swiftly be activated to avert a situation of requesting an extension and/or being found irregular, which would then necessitate that reports be written to regularise the expenditure given that both contracts constitute critical elements in the core functions of the offices [directorates],” Dyakala said in the letter.
The process plan did not, however, work as it should have, and advertising took longer due to the two directorates’ failure to authorise the items to be tabled in the bid committees.
“In many instances the items, particularly the refuse compactor specification, had to be changed because both offices felt that there was certain information that needed to be infused in the specification and this caused serious delays to an extent that the then [acting] executive director for public health left the municipality without authorising it and it had to be expeditiously approved for the bid specification committee by the current acting executive director,” reads the memorandum.
National Treasury warning
“It’s based on these challenges and developments that the sub-directorate had prepared deviation extensions for both contracts for the accounting officer to consider and approve so that service delivery is not affected whilst we are still in the process of having formal triennial contracts.”
The National Treasury had warned that deviations and extension of contracts contributed to the metro’s ballooning unauthorised, irregular, fruitless and wasteful expenditure — before its threat to withhold the December equitable share tranche should the city not address it.
The matter had also been flagged by the Auditor-General in the 2024/25 audit cycle, specifically on the hiring of refuse trucks.
In a bid to ensure the continuity of refuse collection services while the long-term contract is processed, the metro seeks to procure additional refuse compactor services [via deviation] for six months to complement the existing municipal fleet before the end of February.
The metro needs 38 compactors to provide the refuse collection service at full scale.
In the 2024/25 financial year, the city initiated the investment of R90-million towards strengthening its internal refuse collection capacity.
This resulted in the acquisition of eight new compactors, with a further eight compactors purchased in December.
/file/attachments/orphans/Newcompactors1_699909.jpg "The metro unveiled eight new refuse compaction trucks in December to strengthen the refuse collection service and keep the city clean (Photo: Nelson Mandela Bay metro)")
Without these three contracts in place, the metro risks a surge in illegal dump sites and scattered rubbish, creating a serious health hazard for local communities.
Municipal spokesperson Sithembiso Soyaya said the municipality was committed to uninterrupted refuse collection services while adhering strictly to legislative and governance prescripts governing public procurement and financial management.
“This deliberate fleet renewal programme is aimed at reducing long-term dependence on external service providers and enhancing the sustainability and reliability of refuse collection services,” said Soyaya.
“While deviations are not the preferred procurement method, they are legally accommodated for under regulation 36 of the municipal supply chain management (SCM) regulations, which allow deviations in instances of emergency, impracticality, or where it is otherwise in the best interest of the municipality, provided that proper motivation and approval processes are followed.”
‘Long-term stability’
Soyaya indicated that the municipality wanted to wrap up the finalisation of the three-year contract to ensure long-term service stability and reduce reliance on interim measures.
“A new three-year refuse collection contract is currently undergoing the prescribed procurement process and will be advertised in due course. The contract is presently at the bid specification committee in compliance with the Municipal Finance Management Act. This stage is critical to ensure that the contract is properly scoped, compliant and responsive to the city’s operational needs before it proceeds further in the SCM process.”
The metro is in the process of concluding the appointment of contractors before the end of February 2026 for the supply and delivery of refuse bags for three years.
The tender is in the 21-day “cooling-off” period to allow unsuccessful bidders to lodge objections and appeals, or formally challenge the decision.
“Once this process has been concluded and considered by the relevant committees, appointment letters will be issued to the successful bidders,” said Soyaya.
“It’s important to emphasise that all SCM processes must be followed diligently to ensure full compliance with legislative prescripts, including oversight and reporting requirements to National Treasury. While this may at times result in longer processing periods, these safeguards are essential to protecting public resources and ensuring lawful, transparent procurement.”
Politics head for public health Thsonono Buyeye said the metro was aware of concerns raised regarding refuse collection contracts. He said day-to-day refuse collection continued in all 60 wards, in line with the approved weekly schedule mandated by the National Environmental Management: Waste Act, 59 of 2008.
Reforms
Buyeye said NMBM Solid Waste Management was implementing National Treasury trading services reforms to establish itself as a fully functional business unit. The introduction of Single Point of Management Accountability was intended to address delays in procurement and external hire contracts, strengthen accountability and streamline processes to ensure efficient, sustainable refuse services.
“The Waste Management Sub-Directorate remains committed to reliable refuse collection, clean governance, and uninterrupted service delivery to all communities of Nelson Mandela Bay,” he said.
Ward 40 [Seaview, Greenbushes, Kuyga] councillor Jason Grobbelaar said that during the December holidays, until Monday this week, there had been overflowing transfer bins placed by the municipality.
“I can’t complain about the general refuse collection and refuse bags distribution, but my concern was with the roll-back bins that were not cleared until this Monday. If this is going to be the norm, I fear that the overflowing litter will blow to the neighbouring farms and can be consumed by the animals.”
Ward 17 [KwaZakhele] councillor Gamalihleli Maqula said parts of the area use the municipal household bins while others still rely on the distribution of refuse bags.
“So far, everything still works according to plan, rubbish is collected based on the schedule. While I haven’t heard anything regarding the distribution of the bags yet, no issue has been reported to my office yet.” DM