MPAC INTENSIFIES WORK TO IDENTIFY LIABILITY AND ACCOUNTABILITY
Published: August 25, 2026<< BACK TO NEWS
Nelson Mandela Bay Municipality's Municipal Public Accounts Committee (MPAC) is intensifying its work to assess individual items contained in the Municipality's Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIFWE) register, with a clear focus on establishing liability, recoverability, consequence management and referral for criminal investigation where warranted.
MPAC Chairperson, Councillor Luxolo Namettee, said the Committee's work, supported by the Section 154 support team and relevant municipal officials, is being undertaken on an item by item basis and in accordance with the applicable legislative and oversight requirements.
Cllr Namettee emphasised that there is no blanket write off process underway in Nelson Mandela Bay Municipality.
"The work being undertaken by MPAC is specifically directed at ensuring that each UIFWE item is properly identified, profiled and assessed before any recommendation is made to Council. This means establishing what happened, determining the nature of the non compliance, assessing whether a financial loss occurred, identifying whether there is a person who may be liable, determining whether the expenditure can be recovered and establishing whether disciplinary, criminal or other consequence management processes are warranted.
"Where there is evidence of wrongdoing, the appropriate accountability processes must follow. Where expenditure is recoverable, every reasonable effort must be made to recover it. Where matters require further investigation, they must be referred through the appropriate channels. Only expenditure that has been properly assessed and determined to be irrecoverable can be considered for a lawful write off through the prescribed process.
"The R23 billion UIFWE balance is therefore not being treated as one amount that can simply be written off. MPAC is dealing with the individual matters that make up the register. This work is intended to ensure that Council ultimately considers properly supported, evidence based recommendations on each matter,” said Cllr Namettee.
The current UIFWE balance of R23,085,242,601.33 represents expenditure accumulated over a number of financial years and across the categories of unauthorised, irregular, fruitless and wasteful expenditure. The UIFWE balance does not, by itself, establish that the entire amount represents fraud, corruption or financial loss.
The Municipality nevertheless recognises the seriousness of the amount and the legitimate concern of residents about the management and use of public funds. The existence of different categories of UIFWE cannot be used to avoid accountability. Each item must be examined on its own circumstances to establish what occurred, whether any financial loss was suffered, whether the expenditure is recoverable and whether any person or entity may be liable.
MPAC's work includes the identification and profiling of individual items, examination of the circumstances surrounding the expenditure, assessment of potential liability and recoverability, identification of matters requiring consequence management and referral of matters requiring criminal investigation or other appropriate action.
The Committee has welcomed the guidance provided by National Treasury regarding the statutory requirements for dealing with UIFWE and will continue to ensure that its work is aligned with the applicable legal and regulatory framework.
"National Treasury's guidance reinforces the importance of following the correct legal and administrative process. MPAC supports that principle. Our responsibility is to ensure that the work before Council is properly supported by evidence and that every matter is dealt with in accordance with the law.
"We are not approaching the R23 billion as a single amount for blanket disposal. We are examining the individual items that make up the register so that liability, recovery, consequence management and, where necessary, further investigation can be determined on the facts of each matter.
"That is the only responsible way to deal with public money. We cannot prejudge an individual matter, but neither can we allow a matter involving public funds to remain unresolved where the evidence supports further action,” said Cllr Namettee.
The Municipality further emphasises that a lawful determination that particular expenditure is irrecoverable does not mean that accountability is abandoned. A write off addresses the recoverability and accounting treatment of expenditure that has been found to be irrecoverable following the prescribed process. It does not provide protection from disciplinary or criminal proceedings where the evidence establishes that wrongdoing may have occurred.
Where the evidence indicates that an official, political office bearer, service provider, businessperson or any other person may be liable, the appropriate processes must be pursued. Where a matter indicates possible criminal conduct, it must be referred to the relevant law enforcement authorities in accordance with the law.
Executive Mayor, Councillor Babalwa Lobishe, said the Municipality has a responsibility to confront the longstanding UIFWE challenge openly and ensure that the public receives assurance through action rather than words.
"Residents are entitled to ask what happened to public money and whether those responsible can be held accountable. We must answer those questions through evidence, due process and the law.
"Where wrongdoing is established, there must be appropriate consequence. Where money can be recovered, we must pursue recovery. Where matters require further investigation, they must be investigated. No person should be protected from accountability because of their position, whether that person is an official, Councillor, businessperson or member of the public.
"At the same time, accountability must be based on facts and due process. We cannot declare a person guilty before the appropriate processes have been completed, nor can we describe every rand recorded as UIFWE as money that was stolen. Our responsibility is to establish what happened in each case and ensure that the appropriate action follows from the evidence.
"I want to be unequivocal: there is no blanket write off process. MPAC is undertaking an individual assessment of the matters contained in the UIFWE register. Where there is liability, it must be pursued. Where there is recoverable money, recovery must be pursued. Where there is evidence requiring investigation or criminal referral, the appropriate action must follow. Where expenditure is genuinely irrecoverable, it must be dealt with lawfully and transparently.
"This Municipality must demonstrate that public money is protected, that weaknesses in financial management are addressed and that accountability is not selective. We will support MPAC in completing this work and will continue to provide the public with appropriate updates as the process progresses,” said Executive Mayor Lobishe.
The process is anchored in Section 32 of the Municipal Finance Management Act, Act 56 of 2003, which provides for liability and recovery in relation to unauthorised, irregular, fruitless and wasteful expenditure and establishes the statutory framework for dealing with such expenditure.
The Municipality's approach is therefore not to treat the R23 billion UIFWE balance as a single amount for disposal, but to ensure that the individual matters making up the register are properly assessed and subjected to the appropriate statutory processes.
The UIFWE register contains matters accumulated over several financial years, including matters dating back more than a decade. MPAC, supported by the Section 154 team, is working to ensure that these longstanding matters are properly assessed and brought through the required oversight and accountability processes.
The Municipality recognises that public confidence will not be restored by simply explaining the UIFWE balance. It will be restored through evidence of action, recovery where possible, consequence management where warranted, proper investigations and stronger financial controls.
Nelson Mandela Bay Municipality remains committed to transparent, lawful and accountable management of public resources and will continue working to ensure that the Municipality's financial management systems protect public funds and support reliable service delivery to residents.
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