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DA lays criminal charges against NMB Acting City Manager

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Dear MyPE

Today, Wednesday 7 August 2019, I laid criminal charges against Nelson Mandela Bay (NMB) Acting City Manager, Ms Noxolo Nqwazi, regarding the illegal “reappointment” of Afrisec Strategic Solutions.

In an NMB Executive Management Committee meeting, on or about 22 July 2019, Ms Nqwazi instructed the Acting Executive Director: Safety and Security, Mr Shane Brown, to compile a report regarding alleged outstanding work by Afrisec, and for such works to be completed so that payments can be made.

This instruction was given without a valid contractual agreement existing between NMB and Afrisec and is contravention of Supply Chain Management Regulations.

Any payments by the Metro to Afrisec will therefore amount to Irregular Expenditure in terms of the Municipal Finance Management Act (MFMA).

In 2007 the Municipality received judgment in its favour in the Eastern Cape High Court, invalidating an alleged agreement between the Metro and Afrisec.

The previous DA-led coalition government cut ties with Afrisec and in November 2016 instituted legal action against them for R92 million in the Port Elizabeth High Court.

Afrisec followed suit by lodging a counterclaim of more than R16 million in respect of apparent services provided. In August 2017 the Metro raised an exception to this counterclaim.

In a judgement by delivered in January 2018, the judge only dismissed the exception and made it clear that both the claim of the Metro for R92-million and counter-claim of Afrisec for R16.9-million should proceed to a full trial. The Court also made no pronouncements on the merits of the claim or counterclaim, gave no directives to either party, or made any financial awards to Afrisec.

This case is still pending and legal opinion obtained from prominent advocates by the previous coalition government has made it clear that the Municipality has good prospects of success in recovering the amount due and of defending Afrisec’s counterclaim.

Afrisec have furthermore made unauthorised use of Metro premises until the instruction was given for them to vacate in the week of 29 July 2019. Any expenses incurred as a result of this unauthorized use of Metro premises amounts to fruitless, wasteful and irregular expenditure.

The Acting City Manager has contravened the MFMA in that she deliberately breached the requirements of the MFMA, which requires a Municipality to implement a Supply Chain Management policy. She also deliberately failed to take all reasonable steps to prevent irregular expenditure.

Only a DA government can fight corruption, ensure good clean governance and speed up the delivery of basic services.

Regards

Gustav Rautenbach Cllr
DA NMB Spokesperson for Safety and Security

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