IPTS Scandal: AfriForum PE demands Nelson Mandela Bay Metro cancels R6.6 million contract

AUGUST 20, 2015

Civic organisation, AfriForum Port Elizabeth, on Wednesday served the Nelson Mandela Bay Municipality with letter a demanding the cancellation of an alleged irregular contract, worth millions, between the City and a local company and that funds already spent be recovered.

The contract was awarded as part of the City's stagnant Integrated Public Transport System (IPTS).

"We mentioned at the beginning of 2015 that we would hold officials, politicians, contractors and attorneys involved in corruption activities in our Metro accountable, and we wish to now share with you that while the Hawks, National Treasury and Minister Pravin Gordhan's team are investigating corruption in the NMB Metro, we took our first step [Wednesday] by serving the City Manager [Mpilo Mbambisa], The Mayor [Danny Jordaan] and Speaker [Maria Herman] with a Letter of Demand,” said AfriForum PE Vice Chairperson, Kobus Gerber, who is also Nelson Mandela Bay Ratepayers Association (NMBRA) Chairperson, in a statement.

"We are demanding the cancellation of a contract between NMB Metro and Erastyle (Pty) Ltd, who has not successfully completed any work against this irregular contract as well as claiming the sum of R6 661 157.00 from the contractor and six metro officials including the City Manager and the CFO."

The Nelson Mandela Bay Municipality has been given up to 15 days to respond to the letter's demands.

Gerber said the four-page Letter of Demand was just the first one of many that are following soon.

"This is the first claim out of 40 totalling an amount of R680 million which will be claimed back," he said, reiterating his earlier calls that taxpayers monies be recovered from Nelson Mandela Bay Municipality officials and contractors implicated in the City's failed IPTS.

"All contractors and officials will be held accountable for the repayment of all wasted and mismanaged funds and all assets seized and criminal cases opened against judgments received."

Read the full Letter of Demand HERE.