Supplied
National Treasury has withheld R591 m in grant funding from the Nelson Mandela Bay Municipality over the appointment of Anele Qaba as the new CEO of the Nelson Mandela Bay Development Agency (MBDA).
This came to light during a media briefing held by the Democratic Alliance in Gqeberha on Friday.
Qaba is the metro's former Executive Director for Economic Development, Tourism, and Agriculture.
The municipality ended his employment after a lengthy suspension before his appointment at the MBDA.
National Treasury's stance on the matter is outlined in a letter addressed to Mayor Gary van Niekerk by the City Manager.
The DA's Retief Odendaal said the withholding of funds will have a negative impact on service delivery.
"Unless we act fast, we run the risk of forfeiting all grant funding and not receiving another cent.
"Without this money, not a single project in this city can be implemented," said Odendaal.
Municipal spokesperson Kupido Baron said they informed National Treasury that the matter was under investigation.
"The MBDA representative committee studied the correspondence and made recommendations that will be given to the Executive Mayor for a response to MBDA.
"In the interim, we are still engaging with National Treasury," he said.
