NMB residents demand Mayor Pay Back the Money spent unlawfully in transformer lease scandal

Issued by Retief Odendaal MPL – DA NMB Mayoral Candidate
21 Oct 2026 in Press Statements

 

  • Hundreds of residents joined our protest to demand that Mayor Babalwa Lobishe pay back the money.
  • The DA launched an application in the Gqeberha High Court to hold Lobishe and former Acting City Manager Ted Pillay personally liable for any unlawful expenditure linked to the NMB transformer deal.
  • Residents want a DA government to rid the metro of corruption.

Today, hundreds of Nelson Mandela Bay residents gathered to join a protest at Gqeberha City Hall to send a strong message to Mayor Babalwa Lobishe: she must personally pay back any public funds unlawfully spent in connection with her unauthorised leasing of a municipal transformer to a private company.

More than 500 residents gathered in Vuyisile Mini Square and stood together to affirm that they need a Democratic Alliance government that will rid the municipality of corruption and crooks. They are tired of dodgy deals that enriches the connected and hurts the public. They demand a transparent, accountable and financially prudent DA government.

The DA has already launched an application in the Gqeberha High Court to hold Lobishe and former Acting City Manager Ted Pillay personally liable for unlawful expenditure linked to the transformer deal.

We took this step because Lobishe and Pillay leased the transformer, which has a reported value of R25 million and is a core municipal asset, despite clear legal advice that Council authorisation was required. This advice was ignored. Lobishe took a unilateral decision and the deal was done.

The DA has applied to the Court to compel the Nelson Mandela Bay Municipality to recover unlawful expenditure from Lobishe and Pillay in their personal capacities, as required by the Municipal Finance Management Act (MFMA). We want every cent recovered, including the Municipality’s legal costs arising from this deal.

Alongside the court action, the DA will, at tomorrow’s Nelson Mandela Bay Council meeting, insist that the Mayor’s actions be referred to the Rules and Ethics Committee for further investigation.

The DA believes it has a strong case to hold Lobishe and Pillay personally liable for the unlawful expenditure, and that Council also has sufficient grounds to take action against her.

The Mayor has willingly ignored legal advice, bypassed Council, exposed residents to risk, and demonstrated that she is not fit to hold office. She must be held accountable.

The DA can take office in this Metro, if every DA supporter comes out to vote DA on 4 November so that we can get Nelson Nelson Mandela Bay working for all.