DA: Seeks Mayor Lobishe Personal Liability for Coega Lease

• The DA is preparing a high court bid to hold Nelson Mandela Bay Mayor Babalwa Lobishe personally liable for losses from a R25 million transformer lease to Coega Steels.
• This action is based on the Municipal Finance Management Act (MFMA), which allows for personal liability of municipal officials.
• Mayor Lobishe was recently ordered to pay R82,970.88 in legal costs after her urgent application to interdict Siyanda Mayana over alleged defamatory social media claims was dismissed.
• The DA aims to join the municipality's pending review application and compel the Nelson Mandela Bay Municipality to recover any financial losses directly from Lobishe.
• The case highlights increasing personal accountability for municipal officials in financial decisions.

Should the DA succeed in its efforts to force the Nelson Mandela Bay Municipality to seek recovery from the mayor, it could establish a significant precedent for future cases involving alleged financial mismanagement or irregular procurement decisions within local government.

The Democratic Alliance (DA) is initiating a high court challenge aimed at holding Nelson Mandela Bay Mayor Babalwa Lobishe personally accountable for any financial losses stemming from a contentious R25 million transformer lease agreement with Coega Steels. This legal move comes shortly after Mayor Lobishe was ordered to pay a significant sum in legal costs following another unsuccessful court application.

Specifically, court documents reveal that Ms. Lobishe must pay R82,970.88. This order resulted from the dismissal of her urgent application seeking to prevent People's Power leader Siyanda Mayana from publishing what she claimed were defamatory statements about her on social media platforms. The application was dismissed with costs, marking a recent setback for the mayor. Now, the DA is preparing to approach the Gqeberha High Court, seeking an order that would compel the Nelson Mandela Bay Municipality to pursue recovery directly from Mayor Lobishe for any financial detriment incurred due to the Coega Steels lease controversy.

The legal basis for the DA's action against Mayor Lobishe rests on the Municipal Finance Management Act (MFMA), a key piece of legislation governing financial management in South African municipalities. The MFMA includes provisions that allow for municipal officials to be held personally liable for financial losses incurred by the municipality under certain circumstances, particularly concerning irregular or unauthorized expenditure. This framework is central to the DA's strategy to ensure accountability for the R25 million transformer lease.

Andrew Whitfield, the DA leader in the Eastern Cape, confirmed the party's intentions during a statement made in front of City Hall on Thursday. He announced that the DA has instructed its legal team to intervene in the municipality's existing review application concerning the transformer lease. By joining this pending application, the DA aims to secure a specific court order that would mandate the Nelson Mandela Bay Municipality to recover any financial losses directly from Mayor Babalwa Lobishe, thereby invoking the Municipal Finance Management Act personal liability provisions. The lease of the transformer to a private company has been under scrutiny, with further examination noted as of February 24, 2026.

This high court bid by the DA against Mayor Lobishe for the Coega lease controversy underscores a critical trend towards increased personal accountability for municipal officials in South Africa. The pursuit of Babalwa Lobishe MFMA liability highlights the growing willingness of political parties and oversight bodies to leverage legislative tools like the Municipal Finance Management Act to ensure that public funds are managed responsibly. Should the DA succeed in its efforts to force the Nelson Mandela Bay Municipality to seek recovery from the mayor, it could establish a significant precedent for future cases involving alleged financial mismanagement or irregular procurement decisions within local government.

The outcome of this case, particularly regarding the Nelson Mandela Bay R25m transformer lease, will be closely watched as it could influence how municipal officials approach their duties, especially in high-value contracts and leases. It reinforces the principle that those entrusted with public office may face direct financial repercussions for decisions that lead to municipal losses, moving beyond mere political or administrative consequences. This focus on Gqeberha High Court municipal official liability serves as a powerful reminder of the stringent financial oversight expected under the MFMA and the potential for personal exposure when those standards are not met.

This case highlights the growing legal trend of holding municipal officials personally liable for financial losses under the Municipal Finance Management Act (MFMA). Lawyers advising public sector clients or officials should note the potential for increased personal accountability in procurement and lease decisions, and the precedent this high court bid could set for recovery actions.

Source: Original reporting via Daily Maverick