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Transfer of NMB Municipal Lease Portfolio to MBDA Raises Red Flags

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Dear Editor

The transfer of Nelson Mandela Bay’s (NMB) municipal lease portfolio to the troubled municipal entity, the Mandela Bay Development Agency (MBDA), further highlights the extent of state capture within the Eastern Cape’s largest metro.

This week, the Acting City Manager, Mandla George, approved the transfer of the lease portfolio to the MBDA, giving the entity control over a property portfolio valued at an estimated R2–R3 billion, with leases worth hundreds of millions of rands.

Not only does this fall outside the MBDA’s core mandate, but it also comes at a time of significant uncertainty regarding the future of the agency. Earlier this year, the High Court ruled that the appointment of MBDA CEO Anele Qaba was grossly irregular and that he was not qualified to hold the position. The board that appointed him is also facing criticism, with Finance Minister Enoch Godongwana instructing the NMB Council to initiate procedures to remove the rogue board, which has not acted in the Council’s best interests.

Last week, the DA wrote to Minister Godongwana to express concern that both Qaba and the MBDA board remain in control despite the court ruling and the Council’s decision to remove the board.

Allegations of a close personal relationship between NMB Executive Mayor Gary Van Niekerk and the MBDA management raise further concerns. In this context, transferring control of the lease portfolio may expose the Council to significant and unnecessary risks.

Lease management in NMB has been virtually non-existent, with many lessees struggling for years to renew their leases. This has not only led to a substantial loss of revenue for the metro but also caused uncertainty for numerous non-governmental and nonprofit organisations.

While the DA agrees that NMB must urgently improve its lease management, we believe the MBDA lacks the capacity to handle this portfolio. More troubling, however, are the allegations of state capture surrounding the MBDA, compounded by the agency’s close ties with City Hall.

Once again, the DA has written to Minister Godongwana, warning that NMB is about to hand over one of the largest property portfolios in the country to an entity led by a politically connected individual who is not legally entitled to his position. We urge Treasury to intervene or, at the very least, implement strict oversight mechanisms to minimize opportunities for corruption and collusion.

The DA remains in your corner, fighting for you.

Regards

Cllr Rano Kayser
DA NMB Caucus Leader

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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.