Democratic Alliance Interim Leader John Steenhuisen says the possible recall of R3.2 billion by National Treasury could bankrupt Nelson Mandela Bay.
Steenhuisen, who was accompanied by DA provincial leader Nqaba Bhanga, was speaking at an oversight visit of the city's controversial Integrated Public Transport System at the IPTS depot in Bethelsdorp on Tuesday.
He said the IPTS project has suffered under immense maladministration since the Metro's current coalition government orchestrated the ousting of the former Metro Mayor, Athol Trollip, in August last year.
Steenhuisen said this includes the unlawful, irregular and wasteful expenditure of funds, outside of the IPTS conditional grant allocation framework, as stipulated by treasury.
He added that the possible recall of IPTS funds threatens to dramatically accelerate the city’s collapse into bankruptcy.
"The biggest victims in this collapse are actually poor South Africans," he said. "This city should hang its head in shame that its allowed this situation to continue. This project is now in even greater peril because once again corruption, maladministration and the lining of the pockets of politicians has been put ahead of the people of Nelson Mandela Bay."
Steenhuisen said R3.2 billion may have to be paid back by the city to National Treasury because the proper procurement processes have not been followed in the IPTS programme.
