Note to Editors: Please find attached soundbites in English and Afrikaans by Cllr Gert Engelbrecht
- National Treasury intervenes to stop NMB’s R23 billion UIFWE write-off.
- Treasury has rejected a blanket write-off.
- Every transaction must now be individually assessed.
The Democratic Alliance welcomes National Treasury heeding our call to intervene to stop Nelson Mandela Bay’s coalition government from writing off R23 billion in Unauthorised, Irregular, Fruitless and Wasteful Expenditure (UIFWE)
This instruction from National Treasury follows the letter we submitted on 13 August 2026, in which we raised serious concerns about the ANC/EFF-led Municipality’s proposed approach to the write off of approximately R23 billion in UIFWE
We specifically asked National Treasury to intervene and provide clarity on the process being followed, the legal basis for the proposed write-off, and whether the Municipality had properly considered the individual transactions making up this enormous amount.
National Treasury has now responded to those concerns and has made it clear that the Municipality cannot simply take a blanket approach to writing off R23 billion on the basis that the expenditure has prescribed.
National Treasury has instructed the Municipality that every individual transaction must be assessed before any write-off can be considered.
This means determining who may be liable, when the Municipality became aware of the relevant facts, what steps were taken to recover the money and whether prescription applies in each individual case.
This is exactly why the DA raised the matter with National Treasury in the first place. We were concerned that an amount of this magnitude was being dealt with as one blanket write-off instead of properly examining the individual transactions and establishing how this expenditure was incurred and whether those responsible can still be held accountable.
Treasury has also raised serious concerns about the affidavit supporting the proposed R23 billion write-off, including deficiencies in the process followed. This raises further serious questions about any decision that may be taken by MPAC or Council if the necessary legal advice and information has not been properly considered.
This money belongs to the residents of Nelson Mandela Bay and cannot simply disappear from the books.
The DA will continue to push for transparency, accountability, and a proper investigation into every transaction.
We will also continue to engage with National Treasury and other relevant oversight institutions where necessary to ensure that the Municipality follows the law and that every possible avenue to recover public funds is pursued.
After the Local Government Elections on 4 November, a DA government will ensure that ratepayers’ money is protected and spent prudently, so that we can get Nelson Mandela Bay working for all.