Nelson Mandela Bay mayor Babalwa Lobishe
Nelson Mandela Bay municipality has shot down fears it is broke after the National Treasury froze its July funding over financial mismanagement.
The metro was among 69 municipalities across all nine provinces that did not receive this month's equitable share transfers, after the treasury on Tuesday cracked the whip on councils that have failed to account for billions of rand in wasteful spending.
In a statement on Wednesday, the municipality said the intervention did not mean it was insolvent or unable to deliver services.
"The municipality wishes to assure residents, businesses, investors and all stakeholders that this intervention is administrative and corrective in nature, as confirmed by the National Treasury, and does not constitute a declaration that the municipality is financially insolvent or incapable of delivering services," it said.
