Nelson Mandela Bay director of Legal Services Nobuntu Mpongwana. (Photo: LinkedIn) Internal disciplinary steps against the Nelson Mandela Bay director of Legal Services came under fire when a parliamentary committee grilled mayor Babalwa Lobishe on why an official, charged with fraud and defeating the ends of justice, was still actively running the city’s legal department.
Last month, Lobishe and a handpicked team made another appearance before Parliament’s Portfolio Committee on Cooperative Governance and Traditional Affairs (Cogta) amid ongoing scrutiny over governance and administrative failures in the metro.
During the session MPs asked the delegation how Nobuntu Mpongwana was still actively working at the municipality despite facing serious criminal charges, including fraud, contravention of the Municipal Finance Management Act (MFMA) and defeating the ends of justice.
Alongside her in the dock is former Nelson Mandela Bay Municipality housing boss Mvuleni Mapu.
The pair are due back in court later this week.
The matter, which dates back to 2019, relates to the termination of Gqeberha law firm Gray Moodliar (GM) as one of the municipality’s legal services providers at the time.
According to the charge sheet, the City notified GM that a decision had been made during a council meeting to terminate the firm’s mandate on all active legal matters.
At the time, GM was appointed to handle more than 50 matters on behalf of the municipality. Some of these matters pertained to alleged criminal conduct of City officials.
“The services of a number of employees of the Municipality, some of whom were alleged to have engaged in corrupt or irregular conduct, have been terminated or suspended as a result of the proceedings which the GM instituted and prosecuted on behalf of the Municipality,” the charge sheet reads.
Among these matters was the pilfering of R2-billion in grants from National Treasury for the creation of an Integrated Public Transport System (IPTS), which was steeped in controversy since the project started in 2015.
GM approached the high court to oppose the termination of their mandate, and in June 2019 the council’s decision was overturned.
The court found that the firm’s termination was “unlawful, illegal and contrary to the Constitution”, since the City was not only in breach of contract, but was also in danger of incurring fruitless and wasteful expenses.
The court agreed with GM that their termination would also prejudice the residents of NMB because it would prolong legal proceedings and result in taxpayers “footing the bill” since a new law firm would have to be appointed and briefed on complex legal issues, resulting in delays and additional costs.
In October 2019, Mpongwana was appointed acting city manager and late former mayor Mongameli Bobani instructed her to reinstate GM.
However, a week later, while Mpongwana was on sick leave, Mapu was appointed city manager and sent a letter to GM, instructing them to put all Nelson Mandela Bay legal matters on hold, postpone all hearings and hand over copies of all legal matters.
/file/dailymaverick/wp-content/uploads/2022/10/MC-Toilets-Estelle_2.jpg "Suspended human settlements director Mvuleni Mapu outside the court in Nelson Mandela Bay. (Photo: Deon Ferreira)")
Upon her return to work, Mpongwana doubled down on Mapu’s instructions for GM to deliver copies of all active legal matters “for evaluation”.
Meanwhile, according to the charge sheet, National Treasury had requested a progress report on steps taken regarding the findings of the IPTS audit report.
At the end of October 2019, Mpongwana allegedly wrote back, stating that the Nelson Mandela Bay Municipality had taken the necessary remedial steps suggested in the report, despite the instructions to GM to halt all legal proceedings.
The State contends that these actions amount to fraud and contravention of the MFMA, since National Treasury was misled and municipal funds were wasted, while the halting of legal proceedings implicating municipal officials was tantamount to obstruction of justice.
Asked about the above matter before the Cogta parliamentary committee, Lobishe initially said she had no recollection of the legal director ever reporting her court appearance to her.
/file/attachments/orphans/WhatsAppImage2026-05-06at135528_347365.jpeg "Nelson Mandela Bay mayor Babalwa Lobishe appears before the Portfolio Committee on Cooperative Governance and Traditional Affairs last month. (Photo: Phando Jikelo / RSA Parliament)")
However, later in the meeting, acting executive director of corporate services Yolanda Dakuse confirmed that it is common knowledge within the institution that Mpongwana was attending court.
Dakuse added that Mpongwana had made representations to the CFO and the then-acting city manager explaining why she should not be disciplined, and the council allowed the legal process to unfold.
Lobishe further said they can keep an employee on active duty under “exceptional circumstances”. She argued that if an accused employee agrees to be moved, or is deemed unlikely to tamper with or manipulate evidence related to the criminal case, they can remain in the municipality’s employment while the court process is ongoing.
Municipal spokesperson Sithembiso Soyaya said the municipality is unable to comment on active judicial proceedings.
Asked about internal processes against Mpongwana, and why she still holds her position while other officials have been suspended, he said the matter is being dealt with in accordance with labour and municipal policies.
“Each matter is assessed on its own merits, taking into account the specific facts, legal considerations, operational requirements, and applicable governance prescripts.
“The Municipality does not adopt a blanket approach in matters relating to precautionary suspension or disciplinary processes. Decisions relating to any employee are informed by the relevant labour relations framework, legal advice, and the circumstances prevailing at the time,” Soyaya said.
Asked if the municipality was footing the bill for Mpongwana’s ongoing legal matter, his response provided little clarity.
“The municipality is not in a position to disclose matters relating to any employee’s legal arrangements, save to state that all processes are handled within the confines of applicable legislation, policy, and governance frameworks,” Soyaya said. DM