The news text discusses the ongoing dispute between Nelson Mandela Bay metro and Coega Steels, a company that was irregularly leased a municipal asset by the metro. The metro expects the company to meet its payment obligation for services rendered, while the company has launched a legal billing dispute. The City has also taken the matter to the Gqeberha high court, seeking to have the lease set aside. The news text also mentions that the company owes the City for water and rates, and that the City wrote off about R10-million in debt after Coega Steels failed to keep up with payments in 2023.
Nelson Mandela Bay metro finds itself in a Catch-22 situation as the company it irregularly leased a municipal asset to, raising public backlash, has now failed to pay its electricity bill.
In an ironic twist, the company Nelson Mandela Bay bent the rules to save has missed the deadline to pay a R45-million bill, which includes R11.9-million in electricity arrears. While the company has launched a legal billing dispute with the Nelson Mandela Bay metro, the metro still expects it to meet its payment obligation for services rendered.
A report submitted to the cooperative governance and traditional affairs (Cogta) parliamentary committee by municipal officials last week, says the company also owes the City for water and rates. Municipal spokesperson Sithembiso Soyaya said on Thursday that the billing dispute was being attended to through the appropriate governance, legal and revenue management channels.
Nelson Mandela Bay Executive Mayor Babalwa Lobishe authorised the deal with two officials who have since left the City - former acting city manager Ted Pillay and former acting electricity director Tholi Biyela - leaving her as the face of the controversy. Nelson Mandela Bay Executive Mayor Babalwa Lobishe has been asked to explain how the lease of a municipal asset came about. The latest dispute is not the first involving Coega Steels' municipal accounts.
In 2023, the city wrote off about R10-million in debt after the company failed to keep up with payments. Coega Steels confirmed last week that the dispute pertained to specific billing discrepancies that were being adjudicated. The City remains committed to protecting public revenue, maintaining procedural fairness and ensuring that all matters are dealt with consistently, lawfully and without prejudice to ongoing processes
Nelson Mandela Bay Metro Coega Steels Lease Payment Dispute Billing City Water Rates Legal Gqeberha High Court Municipal Cooperation Governance Traditional Affairs Act Systems Billing Accurate Fair Preserving Jobs Advancing Industrial Economy Province
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