Nelson Mandela Bay metro finds itself in a Catch-22 situation as the company it irregularly leased a municipal asset to, raising public backlash, has now failed to pay its electricity bill.

In an ironic twist, the company Nelson Mandela Bay bent the rules to save has missed the deadline to pay a R45-million bill, which includes R11.9-million in electricity arrears.

The bill was due on 13 May.

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While the company has launched a legal billing dispute with the Nelson Mandela Bay metro, the metro still expects it to meet its payment obligation for services rendered.

Coega Steels is one of the city's high-energy users and a significant revenue generator.

A report submitted to the cooperative governance and traditional affairs (Cogta) parliamentary committee by municipal officials last week, says the company also owes the City for water and rates.

For context Company 'rescued' by Nelson Mandela Bay now R11m behind on its rates May 10, 2026 Municipal spokesperson Sithembiso Soyaya said on Thursday that the billing dispute was being attended to through the appropriate governance, legal and revenue management channels.

"The municipality's position remains that all customers are required to meet their obligations for municipal services rendered, while any disputes raised are addressed through the appropriate legal and administrative mechanisms available to both parties," he said.

Coega Steels was thrust into the spotlight when the City leased its...