South Africa: Plan to Write Off R23bn Is Illegal, Treasury Tells Nelson Mandela Bay

The National Treasury says Nelson Mandela Bay's proposed R23bn write-off is unlawful because the Municipal Public Accounts Committee failed to investigate the expenditure item by item, while an affidavit prepared by the acting city manager, Lonwabo Ngoqo, is legally defective.

The National Treasury has made no bones about the unlawfulness of the manner in which Nelson Mandela Bay (NMB) metro is trying to write off R23-billion in unauthorised, irregular, fruitless and wasteful expenditure (UIFWE).

In response to questions from the Daily Maverick, the Treasury said that if the council approves the staggering R23-billion write-off without following proper procedures, officials will be required to provide evidence of the processes undertaken by 31 October.

This comes after NMB's Municipal Public Accounts Committee (MPAC) earlier this month recommended writing off R23-billion in UIFWE without the requisite item-by-item investigation required by the Municipal Finance Management Act (MFMA).

Keep up with the latest headlines on WhatsApp | LinkedIn

The Gathering returns for 2026!

National politics may dominate the headlines, but cities are where residents experience government every day. That's why Daily Maverick The Gathering 2026: Cities Edition is drilling down on local concerns, putting South Africa's boldest thinkers and leaders together to tackle the country's most urgent challenges and explore ideas that could shape the future.

Come join us and experience Daily Maverick live, on Friday 11 Sept at the CTICC Cape Town. Book now or find out more.

Get your Tickets Read more NMB coalition pushes to write off...

AllAfrica publishes around 600 reports a day from more than 90 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.