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City responds to report of imminent administration

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The municipality reports that they became aware of a statement (see here for the statement on MyPE) riddled with untruths released by the DA.

Acting City Manager Johann Mettler responds:

The state of finance of the Nelson Mandela Bay Municipality is stable, secure and good – and there is absolutely zero possibility of the Budget failing, of R1,77 million having been wasted, or of another qualified audit report based on the state of the institution’s finances.

The Budget that was tabled and noted at the Council meeting of 31 May 2016 would in fact have been approved were it not for the technicality that the prescribed seven days notice had not been met. In terms of a Council resolution taken, the budget will be again tabled at another Council meeting, scheduled for 7 June 2016.

The amount of R1,77 billion relates to audited findings for the 2014/15 financial years – this amount was already in the public domain in November 2015 and has absolutely nothing to do with the current Budget. The reference to the amount as being lost “to wasteful, fruitless and irregular expenditure” is baseless – these were simply instances of officials failing to keep proper records or following due procedures. Although this is regrettable in itself – and has since been addressed through stringent measures – the vast proportion of that amount was spent for the intended legitimate purposes, in the interest of the residents of the City.

The Municipality now has cash holdings of R2 billion in the bank and we hold the second highest Moody’s credit rating among all the metropolitan municipalities in the country.

Related: 30 days until NMB placed under administration as budget fails, R1.77 billion wasted.

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NMB Communications

Media Communications at Nelson Mandela Bay Municipality
The Nelson Mandela Bay Metropolitan Municipality Communications Department is responsible for communicating pertinent Municipal news from Port Elizabeth, Uitenhage and Despatch. Municipality Contact Details. See more articles by NMB Communication's.