Nelson Mandela Bay- service delivery in the Eastern Cape continues to falter, a disturbing pattern is emerging: municipalities are failing to spend hundreds of millions in government funding that could help fix critical infrastructure backlogs. One of the biggest culprits, according to Parliament, is Nelson Mandela Bay, which, alongside Buffalo City, has returned large portions of unspent grant funding to the National Treasury.
This troubling development came to light during an oversight visit by Parliament’s Portfolio Committee on Co-operative Governance and Traditional Affairs (COGTA) and the Standing Committee on the Auditor-General. The committees are currently touring several provinces to assess the performance of local governments.
Eastern Cape, particularly Nelson Mandela Bay, has once again come under the spotlight—not for progress, but for failing to convert allocated funds into tangible service delivery outcomes.
Parliamentarians expressed shock and frustration over the inability of municipalities like Nelson Mandela Bay to use infrastructure grants effectively, especially given the dire state of roads, sanitation, water systems, and housing in the region. Over the past financial year alone, more than R300 million in infrastructure funding was sent back to the National Treasury due to non-spending.
Members of Parliament questioned why these grants, earmarked specifically for infrastructure development, were left unused while communities continued to suffer from poor service delivery. They warned that such patterns not only erode public trust but also undermine national development goals.
“There is no justification for not spending money meant to improve people’s lives, especially in areas like Nelson Mandela Bay where the need is overwhelming,” said one MP during the session.
Nelson Mandela Bay and Buffalo City Identified as Top Underspending Metros
During the oversight meeting, Eastern Cape Finance MEC Mlungisi Mvoko acknowledged that Nelson Mandela Bay and Buffalo City are the province’s worst offenders when it comes to infrastructure grant underspending. Despite having some of the most urgent service delivery challenges, both metros have consistently failed to use their allocated budgets effectively.
Mvoko emphasized that while there have been attempts to improve governance and financial controls, the actual return on investment remains unclear.
“We have seen some governance reforms in these metros, but if you measure that against service delivery outcomes, the gap remains very wide,” Mvoko stated.
He added that there is little confidence the situation will improve in the current financial year, warning that more unspent funds may again be forfeited if municipalities do not urgently address their inefficiencies.
According to parliamentary committee members, municipalities such as Nelson Mandela Bay have offered a wide range of excuses for their underperformance—from supply chain delays and capacity issues to political infighting. But MPs argue that these explanations are no longer acceptable, especially after years of similar patterns and repeated warnings from oversight bodies.
“The responses we are hearing from these municipalities are chalk and cheese compared to the actual facts. There is always a reason why things can’t get done—but never a plan for how they will,” said one committee member.
The continued lack of accountability and failure to address the root causes of underspending is now seen as a direct contributor to the ongoing service delivery crisis in the province.
Both Nelson Mandela Bay and Buffalo City have received qualified audits for the past financial year, reflecting serious governance and financial management shortcomings. These audit outcomes highlight a lack of transparency, poor internal controls, and the absence of effective planning and execution of projects.
These metros are still expected to present their side of the story to Parliament during this oversight process. However, given their track record, expectations for improvement are low unless significant changes are implemented.
With service delivery in the Eastern Cape hanging in the balance, Parliament has called for urgent intervention in underperforming municipalities like Nelson Mandela Bay. This includes possibly withholding future funds if municipalities cannot demonstrate the ability to manage them responsibly.
There is also growing support for greater national oversight of metro councils that continue to underperform year after year. Civil society organizations and residents have echoed Parliament’s concerns, demanding stronger accountability and decisive leadership.
“We cannot continue on this path where money is available, yet communities are left in the dark—literally and figuratively,” said a local activist in Nelson Mandela Bay.
The situation in Nelson Mandela Bay is a stark reminder of the gap between budget allocation and actual delivery. Despite having access to substantial government funding, the metro continues to fall short in addressing even the most basic service delivery needs.
If real change is to happen, the municipality must urgently shift from excuses to action. This means strengthening project management, eliminating inefficiencies, and holding officials accountable for financial mismanagement. Only then can residents begin to see the benefits of the public funds meant to improve their daily lives.
Source- EWN
