TRANSFORMER SAGA: DA seeks to hold mayor Lobishe personally liable for R25m Coega transformer lease
The DA is preparing a high court bid to hold Nelson Mandela Bay mayor Babalwa Lobishe personally liable for any losses linked to the controversial R25m transformer lease to Coega Steels.
The Democratic Alliance (DA) in the Eastern Cape is preparing to file a high court lawsuit against Nelson Mandela Bay Mayor Babalwa Lobishe for allegedly holding personal responsibility for financial losses stemming from a contentious R25 million transformer lease to Coega Steels. This legal action follows Lobishe's recent $82,970.88 legal costs incurred in her unsuccessful attempt to prevent political rival Siyanda Mayana from publishing what she alleged were defamatory claims on social media.
The DA argues that the Municipal Finance Management Act (MFMA) should compel the municipality to seek reimbursement from Lobishe for any losses connected to the lease. The transformer lease, signed in September 2025, has been under scrutiny since October of the same year, with Mayana calling for inquiries into the agreement. Lobishe denies any wrongdoing, claiming the account freeze allegations are unfounded and that the lease was necessary to safeguard jobs and local economy.
The DA's legal team was reportedly instructed to join the municipality's pending review application, with the party prioritizing this matter after successfully challenging electricity tariff hikes. DA leader Andrew Whitfield stated that the party believes the lease was unlawful and that Mayor Lobishe has implicated herself in Parliament, making a strong case for holding her personally liable based on available evidence.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written; read the original for the full account.
