‘Enough is enough' – Saftu threatens mass protests over NMB public fund mismanagement
The South African Federation of Trade Unions (Saftu) has threatened the Nelson Mandela Bay municipality with mass action to protest against what it has called the current coalition government's 'incompetence, mismanagement and total disregard for working-class residents'.
Saftu secretary Mziyanda Mcanda said a meeting had been held with the Speaker of Council, Eugene Johnson, who had promised to address their concerns.
But, he added, the latest Auditor-General's report on Nelson Mandela Bay was deeply shocking.
'The report confirms what workers, the unemployed and the poor have long known — that this municipality is being run into the ground by incompetence, mismanagement and a total disregard for working-class communities,' said Mcanda.
Grant spending
Despite being the only metro to receive the Regional Bulk Infrastructure Grant (RBIG) — a critical intervention aimed at improving bulk water and sanitation infrastructure — the municipality underspent the grant by 41%, according to this report.
'This is criminal negligence in a city facing chronic water insecurity and failing sanitation systems. Communities in KwaZakhele, Motherwell and Chatty continue to suffer water cuts and sewerage overflows, while the money meant to fix these issues lies idle due to so-called implementation challenges,' Mcanda said.
'Even more damning is the fact that 67% of senior management posts are vacant, the highest of any metro in the country. This leadership vacuum reflects a collapsing state — one that is either unwilling or unable to deliver even the most basic services. Workers inside the municipality are overburdened, demoralized and left without leadership or direction, while politically connected elites scramble for tenders and positions,' he added.
Motherwell housing project
He highlighted the plight of residents who had been promised housing through the Motherwell NU30 housing project, calling it 'another insult to our people'.
'The Auditor-General confirms that houses were approved for handover despite structural defects and no electricity. These are not homes; they are shells. People are being handed keys to hardship, not dignity.
This is a systemic crisis. It cannot be reduced to administrative failures; it is the direct result of a capitalist state that serves private profiteers and political elites, not the working class. While public money goes unspent or wasted, our communities suffer hunger, evictions, floods and disease,' he said.
Mcanda said the organisation wanted the urgent filling of senior vacancies with competent, accountable and community-oriented personnel. 'No more cadre deployment for corruption,' he added.
They are also demanding the institution of a forensic investigation into the RBIG underspending and NU30 housing project, 'with consequences for those responsible'.
He said they also wanted an emergency summit of affected communities, labour and civil society 'to chart a democratic, people-centred turnaround strategy for the metro'.
Saftu's concerns were also echoed in a letter by faith leaders in the metro which was sent to President Cyril Ramaphosa in May.
'Enough is enough. We will not allow this municipality to continue failing our people. If these demands are not urgently addressed, Saftu Gqeberha will mobilise for mass action,' Mcanda added.
DA says budget is morally indefensible
Meanwhile, the Democratic Alliance (DA) said the proposed 2025/26 Nelson Mandela Bay budget was unrealistic and morally indefensible, as it passes the buck to ratepayers to 'fund the mismanagement of our inept ANC-led municipality'.
In a pre-budget press conference held on Wednesday, Odendaal said the metro was haemorrhaging millions of rands due to its inability to spend grant funding.
The budget will be discussed in a council meeting on Thursday.
'Over the last two financial years, the ANC-led administration's dysfunction has lost a staggering R900-million in grant funding meant to build roads, and water and electricity infrastructure.
'This inability to spend is a crisis and, as of April this year, the municipality had only spent 38% (R752-million) of its R1.934-billion capital expenditure budget.
'Against the backdrop of this continued mismanagement, the tariff increases in the budget are morally indefensible. Imagine losing money and then asking ratepayers to balance the books,' Odendaal added.
He further said that the budget as presented to council was only funded because it assumes a 76% collection rate while the average collection rate for the 2024/2025 financial year is 72.15%.
'Ward-based budgets are also a major concern as very little budget has been made available for certain wards. The DA believes every community has the right to a fair allocation of resources,' he said.
Executive Mayor of Nelson Mandela Bay Municipality, Cllr Babalwa Lobishe, held a mayoral member committee meeting on Wednesday to address the findings of the Auditor-General, and stressed the critical importance of enhanced planning and accountability within all departments.
She promised last week that she would address the vast underspending of Treasury grants at the city council meeting on Thursday.
'By Monday, a consultative report must be ready for virtual discussion to guide Wednesday's submission. With only three months left until the Auditor-General's review, we cannot afford to be caught off guard,' she said.
Departments have also been directed to review current contracts, identify possible risks and define clear actions to avoid repeated deviations or contract extensions.
'Changing our culture doesn't take time; it takes consistency. If we focus on efficient, daily execution, our teams will adapt and we will start seeing real progress,' she concluded. DM
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
3 days ago
- The Citizen
Two-pot pension system disburses billions, but concerns linger
The two-pot system has two components – one for savings and the other for retirement. Many concerns over the two-pot retirement payouts have not yet been addressed, even as the system forges ahead with almost R60 billion disbursed to claimants since September last year. Prof Lucien van der Walt, director of Neil Aggett Labour Studies Unit at Rhodes University, said the system is a positive development, but it allows a small amount to be accessed annually. 'Given the situation that many working-class people face, it's better than being trapped in a downward spiral of financial instability and losses,' he said. Small annual access seen as both a benefit and limitation 'Previously, many people quit their jobs so that they could access their retirement funds, often leaving them broke later, and on the small government old age pension system.' Van der Walt also highlighted as one of the negatives of the system the fact that the money would be taxed on withdrawal at the usual tax rate. 'You will lose some of the money, even though it is your money. This is not the same as withdrawing cash from an ATM,' he said. However, trade union federation Cosatu described the pension fund reform as 'among the most transformational since the democratic breakthrough of 1994'. More than R57 billion has been paid to more than 3.5 million workers since the roll-out of the two-pot pension system. 'Fund operators reported unprecedented numbers of calls and applications from workers. While some funds' systems were initially overwhelmed, most coped well, with Cosatu and its affiliates intervening where workers experienced challenges,' said Cosatu's parliamentary coordinator Matthew Parks. Cosatu praises system rollout but slams employer defaults While the ANC-aligned federation praised the 'excellent progress' made in the system payouts, it objected to some employers and municipalities that had failed to pay over workers' pension contributions. ALSO READ: Two-pot retirement system: Almost 4 million withdrawals close to R57 billion Parks said some 7 700 employers had been fingered as culprits, with the largest numbers of such cases reported in the municipal, security and cleaning sector. He said Cosatu was 'deeply angered by over 7 700 employers who, through this process of providing relief to workers, have been exposed for having failed to pay over workers' pension contributions'. He said this is fraud and theft and must be dealt with by law enforcement agencies. 'Cosatu, with National Treasury and the Financial Sector Conduct Authority, continues to intervene with such delinquent employers to ensure this criminality is dealt with,' said Parks. Saftu raises alarm over lack of access before retirement But the South African Federation of Trade Unions (Saftu), while welcoming the system, rejected the rules surrounding the second pot – the retirement component. 'The two-pot pension reform could have been progressive if it were not for the rules for the second pot, which require workers to access it only at the retirement age,' said Saftu in a statement. 'This means a worker who is dismissed, retrenched or who resigns, will not access their pension fund in a lump sum until after they reach retirement age.' How the two-pot system works The two-pot system has two components – one for savings and the other for retirement. This meant 33% of the contributions would go into a savings pot and be accessible for withdrawal once a year, while 66% would go into the retirement pot, where it would be kept in the fund until the employee reached retirement age. ALSO READ: Poor financial literacy about retirement costing SA and consumers millions This is designed to ensure employees will be able to access their retirement savings to provide some financial relief, according to the fund operators. 'Reduced standard of living' Some regard this as a great idea in light of the ongoing economic crisis and financial strain that is burdening workers. The African Christian Democratic Party had cautioned workers that withdrawals from the savings pot should only be made for emergencies. 'It should also be noted that this withdrawal will be subject to tax and other administrative costs, resulting in one receiving less than what was applied for,' said the party. 'Additionally, a withdrawal from the savings pot will reduce the final total amount available at retirement and may result in a reduced standard of living.' Fund operators and watchdogs urge caution Last year, retirement fund operator Allan Grey told its clients that the idea behind the new two-pot retirement savings system is to promote the preservation of retirement fund investments until members retire. While Old Mutual, in one of its myth-busting explanations, said the system would be automatic for all retirement fund members. But Corruption Watch cautioned about the potential for fraud and corruption related to the two-pot retirement system, particularly regarding cybersecurity vulnerabilities and the risk of scams. The corruption buster encourages vigilance, reporting suspicious activities, and verifying communications from retirement funds. NOW READ: Dipping into retirement funds could cost more than you think
The Citizen
4 days ago
- The Citizen
CoE corrects electricity tariff error, refund process in place
The City of Ekurhuleni has acknowledged that some customers experienced a slight increase in electricity charges on 1 July 2025 due to a technical error in the applied tariffs. The city has apologised for any inconvenience caused and confirmed that the issue has been corrected. From July 2 2025, all electricity purchases will be charged correctly at the Council-approved tariffs. Residents who purchased electricity on July 1 and were affected by the error can visit their nearest Energy Office at any Customer Care Centre (CCC) for a refund. Customers should bring their meter number when visiting the Energy Office. Refunds will be issued in kWh (units) and not in cash. Only those affected by the tariff error on July 1 will be eligible for the refund. The City of Ekurhuleni has thanked residents for their understanding and patience during this process. At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
IOL News
5 days ago
- IOL News
Knysna's future now in MEC Bredell's hands
Knysna mayor Thando Matika. Image: Facebook KNYSNA mayor Thando Matika has defended the municipality against the provincial government's plan to dissolve the municipal council, saying Knysna remained on the correct path to recovery. Local government MEC Anton Bredell recently notified the municipality of his intention to appoint an administrator until a newly-elected leadership takes over the municipality. Matika on Monday said they have implemented structural reforms and enhanced service delivery since the Council adopted the Consolidated Executive Obligations Monitoring and Enforcement Framework (CEOMEF) in June 2024, 'The journey is far from over but Knysna is on the correct path. A series of administrative and governance improvements were undertaken in August 2024, as outlined in the initial implementation report. 'By February 2025, the municipality had finalised the appointment of critical senior managers, achieved 97% completion of the Audit Action Plan, broadened the rollout of smart metering for both water and electricity. Tabled a budget-funding plan addressing sustainability beyond the 2024/2025 financial year, improved revenue management and expenditure control practices.' 'A multi-stakeholder Steering Committee, comprising representatives from the municipality, Provincial Government, and National Government, was established since the adoption of the Diagnostic and Support Plan on 1 March 2024 to oversee implementation and ensure accountability. Regular Steering Committee meetings, held both virtually and in person, provided a structured platform to monitor progress, escalate issues, and coordinate support across all three spheres of government. 'The latest Section 154 progress report was tabled before Council on 12 February 2025, supported by a comprehensive monitoring and reporting framework.' In his statement last week, Bredell said the municipality continued to experience 'serious challenges in governance and service delivery'. He cited several years of diagnostic assessments of the municipality's governance, financial, and service delivery matters. 'The assessment revealed deep-rooted governance failures, including a regressing audit opinion, an organisational culture of fear and uncertainty, political interference in administration, critical vacancies at senior levels, and a marked decline in service delivery." After Knysna municipality failed to adopt another report in December 2023, Bredell issued a notice of intention to intervene in terms of section 139 of the Constitution in the Knysna Municipality. However, at the time he said after considering the representations of the municipality, they developed the CEOMEF cited by Matika for the municipality to implement. According to Matika, by the close of 2024, a number of critical environmental and infrastructure achievements marked a turning point, notably the newly upgraded waste transfer station. To address Knysna's water and sanitation challenges, Matika said pumping stations and reticulation networks were upgraded, as well as 'increased functionality at the wastewater treatment works", among others. "The municipality responded to a notice from the Department of Forestry, Fisheries and the Environment (DFFE) regarding wastewater non-compliance in May 2025. Mechanical defects at the wastewater treatment works were promptly addressed. A multi-stakeholder workshop held in April included DFFE, BOCMA, DWS, the Municipal Infrastructure Support Agency (MISA) and provincial departments to address discharge regulations. The municipality committed to weekly effluent quality reporting and applied for a coastal discharge permit," the mayor added.
