Statement by Retief Odendaal MPL – DA NMB Mayoral Candidate:
The Democratic Alliance has launched an application in the Gqeberha High Court to hold Mayor Babalwa Lobishe and former Acting City Manager Ted Pillay personally liable for unlawful expenditure linked to the Nelson Mandela Bay transformer leasing scandal.
Our application contends that the transformer, a strategic municipal asset valued in municipal documents at approximately R25 million, was unlawfully leased to Coega Steels in September 2025.
This was done despite clear legal advice that Council authorisation was required. Lobishe approved the lease, and Pillay signed the agreement, despite being explicitly advised that the matter needed to be referred to Council first for authorisation. This was never done.
Lobishe also admitted to the Parliamentary Portfolio Committee on Cooperative Governance and Traditional Affairs (COGTA) that the deal was irregular.
We have applied to the Court for an order compelling the Nelson Mandela Bay Municipality to recover unlawful expenditure under the Municipal Finance Management Act (MFMA) from Lobishe and Pillay in their personal capacities. We want to recover every single cent of unlawful expenditure arising from this deal, including the legal costs incurred by the Municipality.
The DA believes it has a strong case for holding Lobishe and Pillay personally liable for unlawful expenditure related to this dodgy deal.
Mayor Lobishe ignored legal advice, bypassed Council, exposed residents to risk, and presided over a pattern of governance failures that continues to erode trust in the Municipality. She has demonstrated that she is not fit to hold office and must be held accountable.
When the DA takes office after the elections on 4 November, we will root out all forms of corruption to ensure that the interests of residents are protected so that we can get Nelson Mandela Bay working for all.
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