The Gqeberha City Hall in the Eastern Cape. The Nelson Mandela Bay council will soon hear a motion for the immediate suspension of more than 10 officials who have been implicated in streetlight contract fraud. (Photo: Deon Ferreira) 
It is expected that at its next sitting the Nelson Mandela Bay metro council will hear a motion, submitted by the DA’s Ondela Kepe, pushing for the precautionary suspension of “more than 10” officials in the Electricity and Energy Directorate who were found by the Special Investigations Unit to allegedly be involved in streetlight tender fraud and corruption in the metro.
This comes as the Minister of Cooperative Governance and Traditional Affairs, Velenkosini Hlabisa, revealed last week that an SIU investigation into controversial streetlight contracts from 2020 issued by the Nelson Mandela Bay metro has uncovered cases of fraud, the Contravention of the Prevention and Combating of Corrupt Activities Act and contravention of the Prevention of Organised Crime Act.
Now, Kepe has submitted a motion to the metro council to have these officials suspended and to implement measures to recoup the money lost by the officials.
Another court case initiated in Nelson Mandela Bay, and spearheaded by former mayor Athol Trollip and former city manager Johann Mettler, ended two years ago with a finding by the Supreme Court of Appeal that the metro can recover money lost due to fraud and corruption from officials themselves. Currently, some efforts are under way to act against officials involved in the mismanagement of billions of rand in grant funding for an integrated transport system in Nelson Mandela Bay.
Read more: Municipal officials lose properties, cough up millions as metro starts collecting wasted tax money
Here is what Kepe’s motion says: “Residents across Nelson Mandela Bay have, for years, endured broken streetlights, continuously reporting faults with little to no response, while entire communities remain covered in darkness.
“This prolonged failure has increased vulnerability, particularly for women, children, the elderly, and workers who commute early in the morning or late at night. It has exposed communities to higher risks of assault, robbery and other violent crimes committed under the cover of darkness.
“The absence of adequate street lighting has emboldened criminals, including those involved in cable theft and infrastructure vandalism, further deepening the service delivery crisis.
“Recent investigations into the City’s streetlight contracts have revealed serious allegations of fraud, corruption, maladministration and organised crime.
“These failures represent not only an administrative breakdown, but a betrayal of public trust, with real and dangerous consequences for the people of Nelson Mandela Bay.”
Read more: Nelson Mandela Bay streetlight probe uncovers fraud, corruption and organised crime, says minister
Kepe has requested, in his motion, that Acting City Manager, Lonwabo Ngoqo take adequate steps to:
- Immediately suspend every municipal official implicated in fraud, corruption, or maladministration related to the streetlight contracts, pending the finalisation of investigations.
- Ensure that all such officials are subjected to formal disciplinary processes in line with applicable legislation and municipal policies.
- Where evidence of criminal conduct exists, ensure that criminal charges are laid without exception against all implicated officials, contractors and intermediaries, and that these matters are referred to the South African Police Service (SAPS), the National Prosecuting Authority (NPA), and all relevant law-enforcement agencies for prosecution.
- Take urgent legal and financial steps to recover all irregular, unauthorised, wasteful and fruitless expenditure arising from the streetlight contracts.
- Pursue civil claims against implicated contractors and individuals to ensure that every rand lost through corruption or maladministration is recovered and returned to the City.
The motion has also asked that councillors be updated on the total value of funds lost or irregularly spent, and the recovery mechanisms being implemented to recoup this money, including timelines for legal or other action.
The first criminal case regarding the streetlight contracts in the metro was opened in 2024 after former councillor Tukela Zamani, now a leader of the Mayibuye Civic Movement, acted on information received from whistleblowers.
An internal municipal report had surfaced at the time, indicating that the municipality’s electricity department incurred R24-million in irregular expenditure through contracts for the replacement and repair of streetlights.
In his parliamentary answer Hlabisa said that according to the preliminary SIU report, three companies with their directors and more than 10 officials were involved.
“The names of the companies and officials involved cannot be divulged at present as the investigation team is busy processing the right of replies for disciplinary referrals and preparing referrals to the National Prosecuting Authority. The presidential report has not been issued yet.
“The SIU has established that the procurement undertaken by the municipality was irregular and must be set aside. A memorandum has been prepared and forwarded to the [relevant unit] for consideration. Several officials from the municipality failed to adhere to the supply chain management and finance policies as well as the Municipal Finance Management Act,” Hlabisa said.
He added that the SIU was preparing disciplinary referrals to the municipality for misconduct, criminal referrals to the NPA and administrative referrals for the blacklisting of implicated service providers. DM