Leaky pipe probe clears officials as Auditor-General finalises metro audit

An investigation into the flooding in Nelson Mandela Bay’s budget and treasury records facility found no one was responsible for the incident that damaged crucial financial records during an audit in November 2025.

The investigation report instead proposed that the laboratory services unit, situated on the floor above the archive, be relocated to another site in six months.

The probe was apparently conducted by an independent person commissioned by the safety and security directorate after the incident was referred by chief financial officer Jackson Ngcelwane.

This was revealed by spokesperson for the Nelson Mandela Bay municipality, Sithembiso Soyaya, on Friday when he was questioned about the audit for the 2024/25 financial year, when contract payments for the year under review were said to have been affected by the flooding.

Soyaya said the Auditor-General of South Africa (AGSA) concluded the audit with all payment-related supporting documentation made available and it was assessed in accordance with statutory audit requirements.

“The safety and security directorate has concluded its assessment and recommended that the municipality consider relocating the laboratory services department to an alternative site outside the affected building,” he said.

“This recommendation forms part of broader risk mitigation and infrastructure management measures currently being processed, with anticipated progress within the first six months of 2026.

“The investigation report does not attribute the incident to negligence or wrongdoing by any individual. In keeping with the principles of fairness, due process and lawful administration, it would be premature to institute disciplinary or accountability measures in the absence of evidence.”

Soyaya said that, should any further findings emerge, the metro would act decisively and in accordance with applicable laws, policies and consequence management frameworks.

Auditor-General spokesperson Harold Maloka confirmed the completion of the audit for the City.

“[The] audit report has been issued to the municipality, Maloka said.

“The documents affected by the flooding at the municipality did not form part of the audit scope and did not affect the audit process. In line with the prescripts of the Municipal Finance Management Act (MFMA), the municipality is expected to table its annual report, which will be inclusive of the audit report, before council.”

The 18 November flooding occurred on the first floor of the metro’s scientific services offices before leaking into the basement records facility, affecting contract payment receipts that Ngcelwane said were central to the audit.

The matter was reported at the Humewood police station two days later by the acting city manager, Lonwabo Ngoqo, accompanied by mayor Babalwa Lobishe and her deputy, Gary van Niekerk.

Videos of the flooding show water seeping through the ceiling from the floor above into the records facility, damaging cardboard files stacked with piles of paperwork that are placed on the floor, while others in filing cabinets are undamaged.

Suspicions were raised that the flood could have been caused by a tap that was deliberately left running after the end of business that day.

The waterlogged files were damaged because they were placed on the floor instead of in filing cabinets.

At the time, Ngcelwane said it would be impossible for the Auditor-General to conclude the audit since all the contract payments for the 2024/25 fiscus were affected and the metro did not have an electronic back-up filing system.

Read more: ‘Suspicious’ flooding damages key documents needed for audit in Nelson Mandela Bay

However, Soyaya said the flooding incident did not compromise the integrity of the audit process nor inhibit the Auditor-General from executing its constitutional mandate.

“This outcome reinforces the municipality’s commitment to sound financial management, transparency and accountable governance.”

After the incident, Soyaya said all affected documents were promptly dried, preserved and returned to the municipality’s formal filing system.

“These records are stored in steel filing cabinets in line with approved records management standards. At all times, safeguarding official financial records remained a priority to ensure audit reliability and institutional integrity. It is important to clarify that certain documents were temporarily placed on the floor solely to facilitate an on-site review by the Auditor-General. This is not a standard storage practice.”

Ngcelwane said on Sunday that it had emerged that the affected documents were not completely destroyed in the flooding.

“I did not say the Auditor-General will not be able to conduct a successful audit. I may have said ‘may not be able to’, Ngcelwane said.

“It turned out that the documents were not damaged to an extent that they (could not) be assessed.

“At the time of the flood they were affected as they were damp, but were subsequently dried and information was able to be retrieved. After they were dried they were returned to the storage.”

Ngcelwane said that, according to the investigation report, the flood was caused by a leaking water pipe in the floor above the laboratory.

“Some weeks after the event [flooding] safety and security came up with a report, conducted by a person from outside to check that [laboratory services] floor. It is that person that made reference to the plumbing issue.” DM