AGE OF ACCOUNTABILITY: DA asks court to make Nelson Mandela Bay mayor pay for R25m transformer lease
Nelson Mandela Bay Mayor Babalwa Lobishe and former acting city manager Ted Pillay could be held personally liable for costs arising from the controversial leasing of a R25m municipal asset to a private company if the DA succeeds in its court bid.
The Democratic Alliance (DA) in Nelson Mandela Bay is seeking to hold Mayor Babalwa Lobishe and former acting city manager Ted Pillay personally liable for R25 million in costs related to the leasing of a municipal transformer to a private company, according to court documents filed on August 7, 2026. The DA argues that the lease of a 132/kV, 63 MVA transformer, valued at around R25 million, to Coega Steels in August 2025 was unlawful and should therefore be recovered from both the mayor and Pillay in their personal capacities.
Lobishe, who faces a separate legal issue over legal costs owed to People's Power leader Siyanda Mayana, has defended the decision to lease the transformer, stating that it was necessary to safeguard 600 jobs at the steel manufacturer and protect the local economy. The DA contends that the lease process was irregular, with concerns raised by the city's Budget and Treasury directorate, and that it was approved despite these concerns.
The DA also notes that the lease agreement was recorded on a document with handwritten annotations, further indicating irregularities.
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