The Nelson Mandela Bay Municipality (NMBM) is seeking to review the appointment of CEO Anele Qaba to run the Mandela Bay Development Agency.
The agency, an entity of the municipality, is run by a board and a CEO.
Projects in the metro ground to a halt after the National Treasury withheld grant funding over Qaba's appointment, which was suspected of having been accomplished via a manipulated process.
The National Treasury reserves the right to withhold funds if a municipality does not comply with grant conditions -- as is the case in NMBM.
DA provincial spokesperson Georgina Faldtman said NMB residents would continue to bear the brunt if Qaba's appointment is not dealt with decisively.
"Service delivery is in a downward spiral, residents suffer due to constant water and electricity outages, potholes riddle our roads, sewage flows in the streets, streetlights are not working, and the Metro is dirty," she said.
The City has sought legal advice to have Minister of Finance Enoch Godongwana release R781 million for the 2023/2024 financial year.
Earlier in August, Godongwana wrote to the municipality demanding that the council agree to invalidate Qaba's appointment. He asked for the potential recovery of the R3 million golden handshake he was offered to vacate his post as the executive director of the municipality's economic development.
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Qaba was released from his municipal post in March due to allegations of corruption. He was cleared by a municipal disciplinary board and then reappointed as CEO of a municipal entity three months later.
The legal opinion sought by the City revealed that Qaba's appointment was manipulated by the Mandela Bay Development Agency (MBDA) board.
In his findings, advocate Olav Ronaasen SC, suggested that the board be dissolved and that Qaba's appointment be reviewed.
Based on the report, Ronaasen concluded that the process of appointing Qaba was flawed because local government regulations in terms of appointments were not followed.
The report further revealed that Qaba was initially not shortlisted for the job. However, a month later a second shortlisting was made and this time Qaba's name was added to the list.
"The inescapable conclusion is that the board manipulated the selection process to favour Qaba," Ronaasen said.
"Our advice is that the municipality proceed to remove the board and advise the minister of its intention to do this."
On Tuesday, the NMB council accepted Ronaasen's recommendations.
Qaba, however, said a legal opinion without consulting all the relevant parties is merely just gossip.
"You must also remember that an opinion is determined based on the information provided by those who briefed the involved advocates," he said.
