Ricochet News

DA to bring motion of no confidence against Bobani over alleged IPTS corruption

Oct 29, 2018
DA to bring motion of no confidence against Bobani over alleged IPTS corruption

The Democratic Alliance (DA) in Nelson Mandela Bay on Monday announced that it will be tabling a no confidence motion in Executive Mayor, Mongameli Bobani, after allegations in the media that he received hundreds of thousands of rands in an allegedly corrupt relationship with a Nelson Mandela Bay Municipality Integrated Public Transport System (IPTS) Service provider.

"These alleged corrupt actions, in which billions were lost by the failing  African National Congress (ANC)-led government, is alluded to in a reported affidavit by the Hawks," said DA Eastern Cape candidate for Premier, Nqaba Bhanga.

"Earlier this month, the Hawks swooped in on Bobani’s office and removed files and computers regarding an investigation into the IPTS.

"The financial stability of the Nelson Mandela Bay Municipality, which is key to growing the economy and opening fair acess to jobs, is now also hanging in the balance after the City’s takeover by Mayor Bobani and his ANC-led coalition of corruption."

Bhanga said that financial mismanagement and the recent "infighting and implosion of the failing ANC in Nelson Mandela Bay will now have a direct financial impact on the residents and the economy".

"Under the DA-led coalition government the Municipality’s collection rate for July 2018 was 98,8%. Since Mayor Bobani and his coalition of corruption made up of the UDM, ANC and EFF took over, the collection rate dropped to 78,7% in September 2018.

"Should this trend continue, it is likely that the City will have a budgeted revenue shortfall of R500 million  in the 2018/2019 financial year," he added.

"The DA believes this drastic drop in the collection rate is a direct result of the fact that the City has not been issuing municipal accounts for the last two months.

"In spite of this, residents have been charged interest on late account payments and in certain instances reconnection fees where their accounts were suspended due to not paying on the due date."

'Nelson Mandela Bay Municipality's creditors repayment rate has drastically worsened'

Bhanga said that, adding insult to injury is the fact that the Municipality’s creditors repayment rate has drastically worsened and is now sitting at an estimated 50 days.

"That means that from issuing of invoice, it will take the municipality an estimated 50 days to settle the account.

"This is an unacceptable situation and will ensure that Small, Medium and Micro-sized Enterprises (SMMEs) and other emerging contractors eventually end up with severe cash flow problems. These cash flow problems will be a direct cause of job losses in the City," he described.

"I will now submit a motion of exigency at the next NMB Council Meeting, to be held on 2 November 2018, to request the acting city manager’s intervention to ensure that interest accrued on late accounts, be written off by the Municipality.

"The DA Caucus has also put together a team, led by Cllr Retief Odendaal, to assist SMMEs and emerging contractors in fast tracking payments to them.

"They can contact Cllr Odendaal and his team directly on rodendaal@mandelametro.gov.za and provide them with all information needed to assist the DA in fighting for urgent payment and against eminent job losses."

Follow more RNEWS articles, subscribe to our YouTube channel and for breaking news LIKE us on Facebook.