Time running out for NMB to take action on SIU streetlight tender findings

Both the Special Investigating Unit and Minister of Cooperative Governance and Traditional Affairs Velenkosini Hlabisa are still in the dark about whether the Nelson Mandela Bay municipality has acted on recommendations to take disciplinary steps against 21 officials allegedly involved in an extensive corrupt scheme involving tenders to replace the city’s streetlights.

Municipal spokesperson Sithembiso Soyaya did not answer Daily Maverick’s questions on the issue this week.

‘We will tell the President’

But SIU spokesperson Selby Makgotho said that if Nelson Mandela Bay had not responded by next month, when the SIU’s 90-day reporting deadline expired, the matter could be reported to President Cyril Ramaphosa.

“The SIU does not have the authority to compel any state institution to act. However, we do require institutions to update the SIU on the status of our recommendations within 90 days so that we can report this information to the Presidency.

“The Presidency has its own mechanism for following up on these recommendations. If necessary, our only option is to escalate the matter to the Legislature through the Standing Committee on Public Accounts (Scopa),” he said.

Makgotho added that, regarding civil action against companies found to be involved in wrongdoing, their Civil Litigation Unit is currently assessing the various matters, “and a decision will be made [whether] to present these matters to the Special Tribunal”.

Minister also in the dark

Cooperative governance minister Hlabisa said in a written answer to a parliamentary question earlier this month that, in terms of the Municipal Systems Act, municipalities were required to submit to the minister records of disciplinary proceedings and outcomes involving senior officials.

“The response from the Special Investigating Unit indicates that it presented its findings to a special council meeting of Nelson Mandela Bay Metropolitan Municipality on 17 April 2026, following which the Council resolved to appoint a panel of attorneys to process the SIU findings,” Hlabisa said.

“However, neither the SIU nor the Department has been formally advised of any subsequent decisions or progress made by the municipality in respect of disciplinary proceedings, suspensions, or consequence management relating to the 21 officials referred.

“Furthermore, the department has not received the prescribed disciplinary records from the municipality in terms of the Municipal Systems Act, and is therefore not in possession of verified information regarding progress or outcomes.

“In the absence of such reporting, the employment status, roles, and accountability outcomes relating to the officials cannot be verified at a national level,” he said.

Hlabisa added that the monitoring of progress relating to SIU referrals was undertaken through intergovernmental oversight mechanisms, including the Local Government Anti-Corruption Forum.

“This forum brings together stakeholders from government, business and civil society to monitor and track progress on anti-corruption initiatives, including the implementation of SIU recommendations and referrals,” Hlabisa said.

Two years later

In 2024, Tukela Zumani (then a Defenders of the People councillor, now leader of the Mayibuye Civic Movement) opened a criminal case concerning the metro’s streetlight tenders. At the time, an internal municipal report had surfaced, revealing that the metro had racked up R24-million in irregular expenditure for streetlight contracts.

In July 2024, President Cyril Ramaphosa issued a proclamation empowering the SIU to probe maladministration in the metro, focusing on streetlight and floodlight tenders.

In January 2026, Hlabisa, responding to a question in Parliament, said that the SIU found fraud, contraventions of anti-corruption laws and irregular municipal procurement involving 21 officials and three companies.

DA Councillor Ondela Kepe, also in January, submitted a council motion for the immediate suspension of implicated officials and recovery of lost funds. But this was voted down.

UNCOOPERATIVE GOVERNANCE

‘Slap in the face for residents’ — NMB council rejects motions calling for streetlight tender accountability

January 29, 2026

In March 2026, SIU advocate Zolile Kwayimani told Parliament that the investigation was nearly complete and that 21 municipal officials and 20 contractors had been referred for criminal and civil action.

Recommendations include blacklisting nine service providers and their directors.

The SIU also indicated that it would approach the Special Tribunal to set aside contracts and recover R35-million.

On 17 April, a special council meeting was held behind closed doors to consider the SIU’s findings.

Hlabisa again, in a response to Parliament, emphasised the need for lawful, prompt disciplinary action and warned against allowing resignations to evade accountability.

Two days later, on 19 April, councillors, including Kepe and Lance Grootboom from the ACDP, demanded the disclosure of implicated officials’ names, warning that secrecy enabled further corruption.

At the time, acting city manager Lonwabo Ngoqo acknowledged that previous SIU referrals had been ignored, files had gone missing, and staff were afraid to act. Mayor Babalwa Lobishe also promised that “processes” had begun.

But until now, the metro has not provided any updates on what has been done. DM