Nelson Mandela Bay mayor Babalwa Lobishe has terminated the mandate of the metro’s development agency to manage the city’s world-class stadium, just one week before the Springboks Test match this weekend.
Lobishe wrote to the Mandela Bay Development Agency (MBDA) on Friday, saying her decision was binding and would take effect immediately.
“Henceforth, the stadium management will be reporting to the capital budget and financial accounting,” she said.
The capital budget and financial accounting refers to the metro’s budget and treasury department.
“This decision is taken in the interest of the Nelson Mandela Bay municipality, its stakeholders and the broader community of the metro,” Lobishe said.
The letter took both the agency and budget and treasury political head Khanya Ngqisha by surprise.
In response, MBDA board chair Glenda Perumal issued a letter later on Friday, calling for further discussions with Lobishe.
“In the spirit of constructive engagement and the interests of the city and the MBDA, we request an opportunity to engage with you urgently to understand the rationale behind your decision and to allow us an opportunity to present our position,” the letter said.
Lobishe did not respond to requests for comment.
Municipal spokesperson Sithembiso Soyaya said the agency was a municipal entity.
“In terms of the Municipal Structures Act and the Systems Act, the municipality, which rests with the council and, where necessary and provided, the mayor, has the power to initiate reviews of institutional arrangements and service delivery mechanisms, including those involving municipal entities.
“While the council may have previously resolved to assign the stadium management function to the MBDA, such mandates remain subject to ongoing review and reconsideration by the municipality, in line with principles of accountability, good governance and legislative compliance.
“No municipal entity operates independently of the municipality, and any assertions to the contrary are unfounded in law.
“The municipality remains committed to managing this process within the prescripts of all applicable legislation and in a manner that upholds transparency, stability and co-operative governance.”
MBDA chief executive Anele Qaba said the agency had been caught off guard.
He said the municipality had never expressed any dissatisfaction with the agency’s performance.
“We do not know where it is coming from,” Qaba said.
“We had an agreement with the member representative committee, a structure appointed by the council to provide oversight to the entity, which had resolved that we be given a longer term based on the performance of the MBDA in running the stadium.
“Since we started this financial year, as an example, we have already increased the revenue generated by the stadium from R7m to [more than] R20m.”
He said the stadium’s calendar was busy for 2025.
“We brought the rugby back,” he said.
“The Springboks are coming, we are talking to the Blue Bulls and there is an in-principle agreement that the Stormers will be back again between November and December.
“So, we do not know how, when we start to perform well, suddenly such a decision is taken.”
On Saturday, the Springboks take on Italy at the stadium in the second Test.
It will be the first time an international game has been played in Gqeberha since 2018.
Qaba said Lobishe’s decision could open the door to possible litigation.
“The game on Saturday is an international match, and we have been engaging with the SA Rugby Union (Saru) and have agreements with them.
“Therefore, if one says, as from yesterday, the mandate is taken away, we are still liable for the commitment we have made to stakeholders and entities like Saru.
“So, whatever gets done during a handover, there would need to be enough time to look at contractual issues to avoid any possible litigation against the entity and the municipality,” he said.
The MBDA was appointed by the municipality to manage the stadium in 2016.
The initial mandate started on January 1 2017, for three years, with a subsequent extension through to June 2023.
It now operates on a month-to-month basis.
Ngqisha said he had not been consulted.
“I only saw the letter via social media, and when I called the CFO [Jackson Ngcelwane] he was shocked as well,” he said.
“Budget and treasury is self-explanatory and does not deal with the management of entities.
“Worse, even the department cited — capital budget and financial accounting — is not related to managing stadiums.”
He said officials would communicate with the mayor through the relevant platforms.
The Herald
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