The Nelson Mandela Bay City Hall in Gqeberha. (Photo: Wikipedia / Rute Martins) 
Nelson Mandela Bay’s outdated bookkeeping systems are in the spotlight, after critical financial records were damaged in a flooding incident at a section of the budget and treasury office.
The municipality does not have an electronic backup system for its financial records and only plans to start scanning physical documents during the current financial year.
The 18 November flooding incident soaked and destroyed contract payment vouchers required for the finalisation of the audit for the 2024/25 financial year.
Cardboard files stacked with piles of paperwork had been placed on the ground, when a tap was allegedly left running on the floor above, resulting in water leaking down to the basement records office.
Read more: ‘Suspicious’ flooding damages key documents needed for audit in Nelson Mandela Bay
An inquiry for investigation was registered with the police two days later.
On Friday, 28 November, Nelson Mandela Bay Civil Society Coalition chair Monga Peter raised concerns about the incident.
“The coalition noted that the nature of the flooding, the timing of the event and the vulnerability of essential financial records point to issues that warrant transparent and urgent intervention.
“The incident highlights the importance of accountability and sound administrative practices within the municipality.”
Peter said the matter cannot be treated as a routine internal mishap, given the potential implications for the metro’s financial oversight processes.
“This incident raises legitimate questions about the systems, controls and safeguards that are meant to protect the metro’s most sensitive financial records,” he said.
“The public deserves clear answers on what transpired, why the documents were exposed to such risk and what steps will be taken to ensure full accountability.”
Peter stated that the municipality should view this matter as an opportunity to reinforce its commitment to transparent governance.
The municipality already cannot account for R2.6-billion redflagged by the AG because of documents that went missing after a system was updated.
Read more: Missing documents hamper Nelson Mandela Bay’s bid to write off R350m in disputed expenditure
“At a time when public trust in institutions is already under strain, it is crucial that the municipality handles this issue with openness and urgency. A clear and responsible response will go a long way in restoring confidence,” Peter said.
Recommended interventions
He said the coalition supported a call for Mayor Babalwa Lobishe and the municipality to implement several key interventions, “to ensure a credible and accountable process”.
He said interventions include commissioning an independent investigation into the circumstances of the flooding, ensuring close collaboration with the Auditor-General (AG) to mitigate any delays or complications in the audit process and applying appropriate consequence management should any negligence or procedural non-compliance be identified.
“The coalition further recommended that the municipality strengthen its document security and facility management protocols, including improved storage practices, enhanced protection against environmental risks and reliable digital backup systems to prevent similar incidents in future,” Peter said.
“It also urged the municipality to issue a public update outlining the steps being taken to address the incident, noting that transparent communication is essential to maintaining public confidence.”
Peter said the coalition’s suggested recommendations are not meant as criticism, but as “constructive guidance aimed at helping the municipality uphold the principles of good governance and responsible administration”.
AG spokesperson Africa Boso confirmed last week that the audit team was informed about the water-logged archives during a meeting with municipal budget and treasury officials on 20 November.
“As requested by our team, the municipality’s officials also sent a written correspondence indicating that the waterlog incident may result in delays in the retrieval of payment-related documents required for our ongoing annual audit of the metro,” Boso said.
“Our team was not on site where the incident took place, therefore, they were not impacted.
“We are in constant contact with the metro’s officials and they have assured us that they are doing their utmost best to ensure that the information we need for the audit will be retrieved in due course.”
Lobishe said the matter has been treated with the utmost priority.
/file/dailymaverick/wp-content/uploads/2025/08/ED_560569.jpg "Nelson Mandela Bay Metro Executive Mayor Babalwa Lobishe. (Photo: Lulama Zenzile / Gallo Images / Die Burger)")
“Any incident affecting municipal records, whether accidental or otherwise, raises serious governance, legal and ethical concerns.
“We have acted swiftly to ensure that this matter is thoroughly investigated, transparently handled, and that no action by the municipality compromises or interferes with SAPS, the AG, the Special Investigating Unit or any other investigative authority. We are committed to full cooperation and accountability.”
Lobishe said contingency plans were in place to ensure audit readiness and continued work relating to record verification, including matters previously reported on.
The metro committed to providing updates once official findings are available and cleared for public release. DM