GQEBERHA – The suspended Nelson Mandela Bay Municipality (NMBM) City Manager, Doctor Noxolo Nqwazi, has continued to receive her salary since her suspension in October 2023 over fraud allegations linked to the irregular procurement of a toilet tender, with payments reportedly totalling R5.8 million in taxpayers’ money.
The Economic Freedom Fighters (EFF), which has been vocal in calling for accountability in the matter, said it is appalled by what it describes as reckless and wasteful expenditure by the municipality, alleging that Nqwazi has received a cumulative R5.8 million during her suspension.
“In what can only be described as irresponsible conduct by a municipality which has failed to exercise its due diligence and responsibility, Nqwazi has drawn a salary whilst on suspension since 20 October 2023, owing to the failure of the municipality to promptly institute the necessary disciplinary processes and procedures,” the statement said. “This has resulted not only in her being a burden on the finances of the municipality, but has meant there has been a revolving door of acting City Managers in the City for two and a half years. As a result, millions have been spent paying these acting City Managers, whilst millions have been spent on the suspended City Manager.”
The EFF statement added that the Bay has allegedly lost R1.6 billion in rollover applications from National Treasury over the years, owing to the absence of a City Manager. “The process of rollovers refers to instances where, each financial year, approved and unspent funds are reallocated for committed projects which can range from infrastructure and service delivery objectives, rather than returning that money to the National Revenue Fund.
This means residents are being denied funds which could improve their lives owing to the lack of an active City Manager to claim these funds.
“On 1 June 2023, the EFF called for the immediate resignation of Nqwazi, on the basis of the findings of the Special Investigating Unit (SIU), which revealed that she approved a R24.6 million tender to procure 2,000 toilets during the COVID-19 pandemic, under the guise of emergency procurement, and only 200 toilets were procured. It was revealed that Nqwazi sat at the head of a corrupt patronage network, wherein she is alleged to have utilised the proceeds of this irregular tender to control ANC and DA councillors using bribes, in order to shield herself from accountability,” the statement said.
After a special motion driven by the EFF in the Nelson Mandela Bay Municipal Council (NMBMC) was introduced, Nqwazi was placed on a precautionary suspension on 20 October 2023.
“It is therefore undermining to the good work of the EFF in fighting corruption, and disrespectful to the people of Nelson Mandela Bay, that money that could have been used to deliver basic services such as water, electricity, cleaning of illegal dumping sites and many other critical services, has been used to pay an individual who is sitting at home doing nothing,” it stated. “The EFF will therefore bring a motion in the NMBMC to begin and resolve disciplinary proceedings against Nqwazi urgently.
“The EFF wishes to make it clear that we will in no shape or form support any settlement agreement with Nqwazi, who has already been accused of defrauding the municipality using tenders, and has now defrauded the municipality by being remunerated for almost three years whilst on suspension. The R6.5 million settlement which she has reportedly agreed to is a slap in the face of the residents of Nelson Mandela Bay who suffer indignity on a daily basis,” the EFF concluded.
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Speaking to PE Express, Nelson Mandela Bay Municipality spokesperson Sithembiso Soyaya confirmed that the matter relating to the suspended Nqwazi remains active and is being processed through both internal disciplinary channels and ongoing court proceedings.
“To clarify, the court case arises from a Special Investigating Unit (SIU) investigation into COVID-19-related procurement, which has also been raised before the Portfolio Committee on Cooperative Governance and Traditional Affairs, reflecting the seriousness of the matter and the level of national oversight,” he said. “The charges before the court include fraud, corruption, and alleged contraventions of the Municipal Finance Management Act, all stemming from COVID-19 procurement matters identified through the SIU investigation.”
Soyaya stated that given this context, the Municipality is legally required to ensure that its internal disciplinary processes do not interfere with, duplicate, or prejudice the judicial proceedings, whilst fully complying with labour law and due process requirements.
“From a governance perspective, the precautionary suspension remains a legally prescribed administrative measure, not a sanction, intended to protect the integrity of the institution and the investigative process,” he said. “We acknowledge public concern regarding the duration of the process and the associated financial implications. However, these matters are complex, evidence-driven, and subject to strict legal frameworks, and must be concluded in a manner that is fair, lawful, and defensible.”
He added that the Municipality has prioritised the finalisation of this matter, within the confines of the law.
“In the interim, municipal operations and service delivery continue uninterrupted, supported by acting leadership arrangements to ensure continuity, accountability, and administrative stability,” he claimed. “Further updates will be provided at an appropriate stage, in line with legal considerations.”
