NELSON MANDELA BAY MUNICIPALITY REAFFIRMS COMMITMENT TO STRONG GOVERNANCE AND AUDIT IMPROVEMENT
Published: January 20, 2026<< BACK TO NEWS
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The Nelson Mandela Bay Municipality notes the Auditor-General of South Africa’s audit outcome for the financial year ended 30 June 2025 and reaffirms its unwavering commitment to ethical leadership, accountability and good corporate governance.
The qualified audit opinion relates to specific, clearly articulated technical and control matters, including non-current provisions, service charge recognition, contracted services, capital commitments, and property, plant and equipment. These matters are largely historic and systemic in nature, many of which have recurred over several financial years, and do not reflect a collapse of governance or the City’s ability to deliver services. The Municipality accepts the findings as reported by the Auditor-General and takes full responsibility for addressing them.
The Municipality accepts accountability for the weaknesses identified by the Auditor-General. These findings are being addressed through focused corrective action rather than short-term compliance measures. Where failures in controls, processes or oversight have occurred, they are being confronted directly, and consequence management is being enforced in line with legislative and governance prescripts.
The Metro has adopted a structured and implementable Audit Improvement Programme anchored on leadership accountability, transparency and institutional reform. This programme is driven through a people, processes and technology framework and includes the cascading of performance management across all levels of the organisation, stricter procurement and deviation controls, compulsory disclosure of interests, stabilisation of leadership in critical positions, and firm enforcement of ethical standards across the institution.
Concrete actions are underway to strengthen contract management, asset and work-in-progress controls, revenue recognition and billing integrity, and the management of unauthorised, irregular, fruitless and wasteful expenditure. In parallel, the Municipality is accelerating the automation of financial reporting, procurement, document management and performance management systems to reduce reliance on manual processes and improve audit reliability, accuracy and compliance.
Dedicated implementation teams have been deployed to work with directorates on audit action plans, with clear timelines, measurable milestones and continuous oversight through executive management, the Clean Audit Steering Committee, the Audit Committee and Council structures.
Executive Mayor, Cllr Babalwa Lobishe, said the audit outcome marks a moment for decisive leadership and reform, "We accept the Auditor-General’s findings without hesitation, and we accept our responsibility to correct what is not working. As the political leadership of Nelson Mandela Bay, we are not interested in excuses or cosmetic compliance. We are focused on fixing root causes, enforcing accountability, and building a culture of ethical, professional and transparent governance. Our residents deserve a municipality that is credible, disciplined and fit for purpose, and that is exactly what we are working towards.”
The Nelson Mandela Bay Municipality recognises that restoring audit credibility requires consistency, leadership stability and uncompromising adherence to governance principles. While the work ahead is demanding, the City remains resolute in its commitment to sound financial management, clean administration and the responsible stewardship of public resources in the best interests of all residents.
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