The head of the Buffalo City Metro Development Agency (BCMDA), Ayanda Gqoboka, has been forced out less than two years after taking over an agency dogged by controversy over multimillion-rand development projects.
The agency confirmed on Monday that it had reached an agreement with Gqoboka to terminate his contract with effect from Friday following discussions between him and the board about the agency’s strategic direction.
While the agency described the departure as amicable, an insider said the decision followed concerns over the BCMDA’s poor performance, internal divisions among executives and the departure of senior managers.
This development is expected to be put before the Buffalo City council, which has yet to formally consider the matter.
Chief financial officer Sabelo Mavundla has been appointed acting chief executive.
Gqoboka declined to comment.
His departure comes after a turbulent period for the agency, which has faced mounting criticism over several high-profile projects, including the R99m Court Crescent development, the stalled Water World project, the proposed R500m Victoria Mxenge Grounds mall development in Qonce and the long-running Grand Prix circuit lease dispute.
When Gqoboka was appointed in January 2024 from the Joe Gqabi Development Agency, he inherited an organisation still reeling from the controversial removal of former chief executive Bulumko Nelana.
Nelana was suspended in October 2022, just three months after his contract had been extended.
After a series of court defeats, the BCMDA eventually paid R4.95m in an out-of-court settlement to end Nelana’s employment after the Makhanda high court repeatedly ruled that his dismissal was unlawful and ordered his reinstatement.
The court described the agency’s conduct as a brazen abuse of power.
Gqoboka’s tenure was soon marked by instability within the executive.
Former chief financial officer Busisiwe Lubelwana resigned barely a year after taking office, citing an “unconducive working environment”.
Her resignation followed the earlier departure of research executive Lesley Govender.
Lubelwana had lodged a formal grievance with board chair Mandilakhe Dilima, accusing Gqoboka of authorising actions against her that were “unjust, prejudicial and discriminatory”.
The agency also continued to grapple with controversial capital projects.
Court Crescent, named after slain Leighandre “Baby Lee” Jegels, attracted national attention after opposition parties questioned its final cost of more than R99m, compared with the city’s original estimate of R87m.
The project is now under investigation by the Special Investigating Unit.
Water World has also remained unfinished despite more than R114m already being spent.
The BCMDA has also struggled to resolve a dispute over a proposed R500m shopping mall at the Victoria Mxenge Grounds in Qonce after community opposition forced the agency to seek an alternative site.
Developer Twin City (Pty) Ltd rejected proposed alternative sites in Bhisho and insisted on the original location.
Most recently, the agency became embroiled in a public dispute with the Border Motorsport Club, which accused it of delaying private investment through a protracted lease deadlock over the East London Grand Prix Circuit.
Responding to Gqoboka’s departure, Buffalo City Metro spokesperson Luzuko Buku said the Municipal Systems Act empowered the BCMDA board to appoint and manage the chief executive.
“The municipality has been informed of the decision of the board and we respect that decision.
“It should be noted that our knowledge of the decision only happened after the board meeting, and we see nothing strange in this regard as any prior knowledge would have been meddling.
“The leadership of the municipality has confidence in the board of the agency and continues to monitor its performance in accordance with the service level agreement entered into by the two institutions,” he said.
Buku said the board had assured the municipality that the leadership change did not signal instability within the agency.
“We want to thank Mr Ayanda Gqoboka for his sterling service to our city and for leading the agency at a crucial time in its life. We wish him all the best in his future endeavours,” he said.
DA councillor Anathi Majeke said the party had not yet received formal communication but argued the agency had consistently failed to deliver on key projects.
She cited delays at Water World, the Grand Prix circuit lease negotiations and the Duncan Village Buy-Back Centre as evidence of broader administrative failures.
“Given this track record, we maintain no confidence in the agency’s capacity to rectify these systemic issues, and we view its eventual dissolution as a necessary and long-overdue step,” he said.
Daily Dispatch
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