ANC demands answers from their own mayor over Nelson Mandela Bay's R25m transformer scandal

Nelson Mandela Bay Mayor Babalwa Lobishe is under fire from her political party after a R25-million municipal transformer was leased to a private company — a deal that has now been sent to the high court for a judicial review.

In a sharply worded letter, the ANC’s provincial leadership demanded that Lobishe explain the circumstances surrounding the lease, including steps taken to restore public confidence and measures to ensure proper governance of municipal assets.

“The ANC has taken note, with serious concern, of media reports alleging the removal of municipal property, specifically a transformer belonging to the Nelson Mandela Bay Municipality, to a private company,” wrote provincial secretary Lulama Ngcukayitobi.

“If proven, these allegations raise grave concerns regarding governance, accountability, and the protection of public assets entrusted to the municipality.”

Read more: NMB’s lease of R25m transformer to Coega Steel heads for high court

On Thursday, Lobishe said she had responded to the request but declined to comment further, stating that the matter was now before the court.

“The transformer lease is in court [the judicial review], so I can’t speak on it. Council deliberated and suggested that it goes to court, and therefore I can’t speak further on it. The judge will make a determination on the matter,” she said.

‘Smear campaign’

Lobishe claimed that the transformer issue was being used in a smear campaign against her.

“It’s a campaign period because the person who’s blowing this up is part of the smaller parties in council, and I’m sure he’s doing it to discredit me, which he won’t achieve because the ANC has its own way of assessing its candidates for the mayoral positions for 2026.”

While Lobishe has not been formally charged, she is accused of irregularly leasing the transformer to a Nelson Mandela Bay company, Coega Steels, at R250,000 per month for a year.

The transformer was initially procured to provide backup for the Swartkops and Greenbushes substations in the city.

Police spokesperson Captain Andre Beetge confirmed that a case had been opened, saying the matter was still under investigation.

The criminal case against Lobishe was opened by former Good party regional chair Siyanda Mayana for the alleged “unauthorised, unlawful and procedurally irregular” relocation of a municipal transformer to Coega Steels.

In his letter to Lobishe, Ngcukayitobi said, “The ANC has ... noted reports indicating that a case has been opened with the police for further investigation into this matter in line with the Constitution of the Republic. We acknowledge that the matter is now subject to legal processes which must be allowed to unfold without interference.”

Given the seriousness of the allegations and the public interest involved, Ngcukayitobi requested Lobishe to submit a detailed written report on the matter, outlining corrective actions, accountability measures and steps taken to restore public confidence.

Another Eastern Cape ANC politician under fire

Lobishe is not the only senior Eastern Cape ANC figure under scrutiny. Lusanda Sizani, chair of the ANC’s Chris Hani region, has been charged under the Firearms Control Act with negligence and failure to safeguard a firearm after his 9mm pistol went missing during an alleged vehicle break-in in East London.

Sizani is expected to heed the party’s step-aside rule, which requires all party members facing criminal charges to voluntarily step down from their political and government responsibilities until they are cleared.

Sizani appeared before the East London Magistrates’ Court on 28 January, and the matter was postponed to 19 February.

Sizani’s lawyer Zet Matiwane said they had made a representation to the Director of Public Prosecutions for the charges to be dropped.

“We’ve made some representation saying he has done nothing wrong; in fact, he is a victim of theft. Mr Sizani is the one who reported the stolen firearm and gave a statement to the police. He was compelled by law to report the incident as a responsible person. The police are now using that statement to incriminate him.

“He had not been negligent with the firearm, and therefore the charges against him have to be dismissed.”

National Prosecuting Authority spokesperson Luxolo Tyali said Sizani had appeared in court six times.

”Mr Sizani is being charged with loss of a firearm for contravening the provisions of section 120 (8) (b), read with other relevant sections of the Firearms Control Act. The circumstances are that he handed over his firearm to be kept by his bodyguard while he attended a meeting,” he said.

Sizani’s bodyguard had gone to town when the vehicle was allegedly broken into and the firearm stolen.

“⁠If convicted of any offence under section 120, including negligent loss, the court may impose a fine and/or imprisonment,” said Tyali.

Matiwane said Sizani had the right to a presumption of innocence and the right to silence.

Both Sizani and Lobishe are supporters of Premier Oscar Mabuyane, who will stand for a third term as the ANC’s Eastern Cape chairperson. The issues Sizani and Lobishe are facing could affect their participation in the upcoming provincial elective conference later this year. DM