Will the controversial lease of a municipal transformer come back to bite Bay mayor?

A motion calling for consequence management against Nelson Mandela Bay mayor Babalwa Lobishe — who told Parliament that the leasing of a R25-million transformer was irregular — is expected to be heard at the metro’s next council meeting.

Lobishe had previously maintained that the lease of the transformer to private company Coega Steels was above board and necessary to save jobs. However, in March, during an appearance before Parliament’s portfolio committee on cooperative governance and traditional affairs, she conceded that the transaction had been irregular.

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Daily Maverick reported that Lobishe had been referred to the ANC’s integrity commission over the transformer lease, which found no grounds for disciplinary action against her.

She has also faced allegations from former Good party regional chair Siyanda Mayana, who claimed that her Capitec account had been frozen after receiving large sums of money in transactions he described as irregular. Lobishe has denied any irregularities.

Disciplinary action

The transformer lease was also raised in council in October 2025, where it was resolved that disciplinary action and consequence management be instituted against former acting city manager Ted Pillay, who has since left the municipality.

The motion calling for consequence management against Lobishe was submitted to the acting city manager’s office by DA councillor Ondela Kepe on 17 April. The motion was seconded by councillor Tyrone Adams.

Kepe told Daily Maverick on 21 April that the motion followed a letter he had previously sent to the city manager calling for consequence management against Lobishe. He said the response he received was unsatisfactory.

Kepe, in a motion submitted to acting city manager Lonwabo Ngoqo, said: “I write to you regarding the now-confirmed irregular leasing of a 132/22kV, 63MVA municipal transformer to Coega Steels (Pty) Ltd, a matter which has [been] served before both Committee and Council, and which has now further been conceded as irregular by the Executive Mayor before the Cogta Parliamentary Committee.

“While the reports tabled by the Municipality, so far, provide a chronological account of events, they fail materially in addressing consequence management, particularly in respect of the Executive Mayor, Babalwa Lobishe, whose role in the approval of this transaction cannot be overlooked.”

Kepe has requested that the council resolves to:

1. Institute consequence management proceedings against the executive mayor in terms of the applicable legislative framework and refer the matter to the rules and ethics committee.
2. Formally request the office of the acting city manager to refer the matter to the MEC for Cooperative Governance and Traditional Affairs for investigation and appropriate action, as provided for in law.
3. Task the office of the acting city manager to provide council with a supplementary report specifically addressing accountability and consequence management in respect of the political office bearer involved in this matter.
4. Task the office of the acting city manager to take all necessary steps to ensure that the integrity of municipal governance processes is restored, in line with the council resolution of 4 December 2025.

Kepe said the lease of the transformer violated several legislative prescripts, including the Municipal Finance Management Act, Municipal Systems Act, Municipal Asset Transfer Regulations, and the Code of Conduct for Councillors.

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He said the admission by Lobishe that the transaction was irregular “confirms what the DA has consistently maintained: that due process was disregarded, risks were ignored, and residents were placed second to improper decision-making. Accountability cannot be selective.”

According to Kepe, it is not enough for Lobishe to subject herself to the internal processes of the ANC in terms of the integrity commission. She must, he says, be willing to accept the internal processes of the city that she serves.

There have been at least two other attempts to hold Lobishe accountable, through motions of no confidence filed by the Freedom Front Plus councillor Bill Harington and the ACDP councillor Lance Grootboom, also over her decision to lease the transformer to Coega Steels. She, however, survived the motion.

Earlier this month, Democratic Alliance MP Marina van Zyl, the party’s spokesperson on cooperative governance and traditional affairs, filed a criminal complaint against Lobishe under the Powers and Privileges Act over her March appearance before Parliament. DM