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Nelson Mandela Bay residents face steep tariff hikes amid council budget turmoil

Nelson Mandela Bay speaker Eugene Johnson. The agenda item that dealt with the city’s staff establishment, which was eventually rejected by council, aims to reduce the number of directorates in the municipality from 11 to seven
Nelson Mandela Bay speaker Eugene Johnson. (EUGENE COETZEE)

With frequent water and power outages, an increase in Nelson Mandela Bay municipal rates and tariffs is on the cards, with residents expected to have to dig deep for an average 10.95% electricity hike.

Ratepayers will likely pay 6.5% more for water, sanitation and refuse.

Property rates could also increase by 5.5%.

The increases form part of the draft 2026/2027 budget debated at Friday’s council meeting.

The council noted the draft budget after a turbulent day of proceedings that saw the meeting, originally scheduled for 2pm, reconvened at 6pm.

The electricity tariff increase represents an average across various customer categories and remains subject to final approval by Nersa.

The increases will kick in on July 1, and the council must still adopt the draft budget.

Mayor Babalwa Lobishe tabled the budget and the draft integrated development plan (IDP).

The first attempt to consider the draft IDP and budget was abruptly abandoned on Friday afternoon after the sitting failed to reach a quorum.

The sitting was a continuation from Thursday, when proceedings were adjourned.

On Thursday, the council had indicated that the draft IDP and budget were not ready for noting and would be distributed to councillors ahead of Friday’s meeting.

However, during the meeting, some councillors complained they had not yet received their agendas.

The hybrid 2pm meeting was attended by councillors from the ANC, PA, EFF, NA, PAC and UDM, while the ACDP, DA, AIM, AIC and FF+ were not present.

Hours before the meeting, ACDP councillor Lance Grootboom wrote to speaker Eugene Johnson, raising concerns about procedural irregularities.

He also said he would not attend.

In the letter, he said council proceedings had reflected a growing pattern of administrative dysfunction, procedural inconsistency, and a disregard for the rules of order.

He said this undermined the integrity of the council and compromised councillors’ ability to perform oversight.

“The ACDP notes with concern that agendas and supporting documentation are repeatedly not circulated within the prescribed timeframe as required in terms of the rules of order.

“The late circulation of agendas and reports materially prejudices councillors, limits adequate preparation for council deliberations, and weakens meaningful oversight over matters affecting residents and municipal governance.

“The ACDP further records its concern that items and motions properly submitted in accordance with the rules of order are regularly not entertained, not considered or excluded from council proceedings without sufficient procedural justification.

“This conduct creates the impression that council processes are increasingly being administered selectively and inconsistently, particularly in matters where opposition oversight and accountability are being exercised.”

Grootboom wrote that it was unacceptable that councillors were expected to engage with or note a municipal budget that had not been properly placed before council and which was not adequately included on the council agenda as anticipated.

“The municipal budget and IDP remain one of the most critical governance and oversight instruments before council, directly impacting service delivery, infrastructure maintenance, electricity provision, water security, road rehabilitation, sanitation and the financial sustainability of the municipality.

“Councillors cannot reasonably be expected to fulfil their fiduciary and oversight obligations in circumstances where critical budget documentation has not been properly processed and presented in accordance with established governance procedures.

“The current handling of the budget process reflects a serious governance concern and further contributes to the declining confidence in the administration of council affairs,” Grootboom said.

DA councillor Gustav Rautenbach also wrote to Johnson on Friday.

He raised issues with reports not on the agenda.

“The DA notes that the budget/IDP is an item for noting. However, the DA maintains that any item on the agenda must be caucused beforehand in line with its internal processes.

“The DA received an agenda for Friday’s meeting via the councillors’ WhatsApp group at 8.16am and on the multiparty whippery group at 8.19am.”

Rautenbach wrote that the DA was aware that today’s meeting was a compliance meeting.

“However, in the DA’s view, the manner in which this process has been dealt with by the executive mayor and your office is procedurally incorrect and unacceptable.”

At the 2pm meeting, Johnson told councillors that they had already waited 40 minutes and, in line with the rules, the sitting had to be adjourned.

“Based on no quorum, this meeting is called off,” she said.

She said a second attempt to convene the meeting would take place later that evening at 6pm.

Johnson said the meeting would be in person, as councillors had trouble connecting due to Wi-Fi and power issues.

At 6pm, councillors from the ANC, PA, EFF, NA, PAC, GOOD and UDM joined, while the ACDP, DA, AIM, AIC and FF+ were not present.

After a 30-minute delay, councillors noted the budget.

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