EC COGTA MEC alleges criminality in Nelson Mandela Bay's R30 billion evergreen contract scandal

Eastern Cape Cooperative Governance MEC Zolile Williams has alluded to criminality in the "stranglehold" that evergreen contracts have on billions of rand in irregular expenditure in the Nelson Mandela Bay Metro.

Speaking during an oversight meeting of parliamentary committees in Port Edward, Williams claimed there was a reluctance on the part of the council to deal decisively with the matter.

The meeting on Monday pitted the provincial government against the Metro Council over issues of poor financial management.

The Eastern Cape provincial government stated that the metros of Nelson Mandela Bay and Buffalo City are the biggest contributors to irregular expenditure in the province.

Nelson Mandela Bay Municipality alone accounts for more than 70 percent of the R30 billion in irregular expenditure incurred across the Eastern Cape.

MEC Zolile Williams said that while the provincial government has been able to help smaller municipalities to break the cycle of evergreen contracts, external service providers are blocking the move in the metros.

"It's a network that needs to be dealt with and I'm saying we may need crime investigations to be part of this process," Williams said.

However, Acting Nelson Mandela Bay Municipal Manager Lonwabo Ngoqo has refuted claims of reluctance to deal with the problem.

"As a municipality, we withhold payments in many contracts that are under investigation, as we are informed by the law enforcement agencies. So, we are not sitting and folding arms," Ngoqo countered.

Mayor Babalwa Lobishe also weighed in, saying she is taking action to stop the perpetual renewal of contracts instead of following proper procurement processes.