NMB streetlight tender — officials and contractors face criminal referrals as probe nears end

The Special Investigating Unit (SIU) is closing in on a dodgy streetlight tender in Nelson Mandela Bay and attempting to recover public funds of about R35-million.

In addition, referrals for criminal and civil action have already been issued against 21 municipal officials and 20 contractors, while recommendations have been made to blacklist nine service providers and their directors.

This was revealed by a KuGompo (formerly East London) SIU official, advocate Zolile Kwayimani, on Tuesday in his presentation to the parliamentary portfolio committee for Cooperative Governance and Traditional Affairs (Cogta).

Kwayimani told MPs that the SIU investigation of contracts to procure and install streetlights in the metro was nearing completion, and a report was being prepared for the President’s office.

“The SIU is currently collating evidence to approach the Special Tribunal to set aside the three contracts and recover approximately R35-million.”

Kwayimani said that an analysis of documents from the metro indicated the successful tenderers had engaged in collusive bidding.

He told MPs that between 15 December 2025 and 12 February 2026, the SIU had recommended that nine service providers and their directors be barred from doing business with the municipality.

“The SIU is in the process of compiling a set of systemic recommendations that identify key weaknesses and issues within the municipality structures and outline practical strategies for addressing them.”

The SIU investigation was sparked by a whistleblower report brought forward by former Defenders of the People councillor Tukela Zumani, who is now the leader of the Mayibuye Civic Movement. The report flagged alleged irregularities in the streetlight tenders approved by the metro on 10 November 2020.

After the latest update on the investigation, Zumani said that while the wheels of justice turn slowly in South Africa, the SIU report showed that they are indeed turning.

He said the referral of evidence pointing to misconduct by 21 municipal officials highlighted the extent of the rot within the electricity and energy directorate.

“One cannot help but assume that if this matter had been resolved earlier, we might not be facing the current electricity supply crisis in the metro, as it is likely that the same officials are involved in its orchestration.”

Read more

Weeks in the dark: Nelson Mandela Bay’s power network fails its people — again

March 19, 2026

He said the recommendation to blacklist nine service providers and bar their directors from doing business with the municipality seemed too lenient

‘Ban the guilty service providers’

“Many companies have simply rebranded and replaced directors with fronts in order to circumvent this type of sanction in the past. Service providers found guilty of participating in the theft of ratepayers’ money should be banned from doing business with all municipalities and state organs indefinitely,” said Zumani.

“The 20 referrals to the NPA of evidence pointing to criminality by service providers is welcomed. We trust that the NPA will spare no effort to ensure that they are prosecuted successfully. We must seize every opportunity to protect the public purse and emphasise that there is no room for corruption and criminality in our society.”

Two motions by Democratic Alliance councillor Ondela Kepe calling for accountability over the state of the city’s streetlights were dismissed by the council in January — a decision he strongly condemned.

One motion sought to suspend more than 10 officials from the electricity and energy directorate pending investigation, after the SIU implicated them in alleged fraud and corruption linked to the streetlight contracts.

Kepe said he welcomed the latest developments in the SIU investigation, which could lead to the arrest of implicated officials and the recovery of public funds.

“It’s critical that the rot within the metro is uncovered. The sad reality is that the municipality has had multiple opportunities to hold people accountable. Hence, I submitted the motions, but the acting city manager [Lonwabo Ngoqo] did nothing due to pressure from the ANC.”

Good Party councillor Lawrence Troon said it was unfair that the SIU only made referrals for the implicated officials, arguing that he believed some Bay councillors were also involved.

“I’m troubled by how there was no mention of implicated councillors when it is an open secret that some are involved. It is the politicians who collude with officials in these corruption issues.”

‘Watered-down version’

Troon said he believed the SIU presentation was a watered-down version of what will be presented to President Cyril Ramaphosa once the investigation is finalised.

He said he wanted clarity on whether any implicated companies had secured new streetlight tenders, and if so, whether these contracts would be cancelled or payments for completed work reclaimed by the state.

ACDP councillor Lance Grootboom noted the tabling of “damning” findings about the municipality’s electricity department.

“The SIU findings expose a department riddled with corruption and irregularities, with civil action under way to recover millions, disciplinary steps against officials, criminal referrals to the NPA, and service providers facing blacklisting. The scale of wrongdoing is undeniable.”

Grootboom said this was tantamount to capture and not just mismanagement.

“It is no coincidence that Nelson Mandela Bay is plagued by massive electricity losses, broken infrastructure and communities left in darkness due to non-functioning streetlights. A captured department cannot deliver services. It collapses and takes the city with it.”

He said the ACDP would not accept a situation where corruption was normalised while residents suffered.

“Those implicated must be held accountable, and the law must take its full course without delay. We call on Mayor [Babalwa] Lobishe to act decisively and immediately against all those implicated in the electricity department.” DM