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Company rescued by Nelson Mandela Bay transformer lease now owes metro R45m, including R11.9m electricity arrears

Daily Maverick · · 627 words · By Andisa Bonani
Political accountability Municipal Financial Mismanagement Corporate Debt and Disputes
open_in_new Read the original article: https://www.dailymaverick.co.za/article/2026-05-14-company-rescued-by-council-tr…

psychologyDetected Techniques

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Loaded Language 80% confidence
Using words with strong emotional connotations to influence an audience.
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Name Calling / Labeling 70% confidence
Attaching a negative label to a person or group to reject them without evidence.

fact_checkFact-Check Results

13 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

info Single Source 6
check_circle Corroborated 4
schedule Pending 3
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“the company Nelson Mandela Bay bent the rules to save has missed the deadline to pay a R45-million bill, which includes R11.9-million in electricity arrears.”
SINGLE SOURCE
While web search results confirm the existence of a transformer lease dispute involving Coega Steels and Mayor Babalwa Lobishe, none of the provided evidence mentions a R45-million bill, a R11.9-million electricity arrear, or a missed payment deadline.
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web search NEUTRAL — Coega Steels further indicated plans to expand its operations by the end of 2025, which would see its annual electricity bill rise sharply. Between January and July 2025, it paid R141m to the metro, a…
https://www.theherald.co.za/politics/2025-10-30-legal-opinio…
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web search NEUTRAL — The Public Protector has been asked to probe Nelson Mandela Bay mayor Babalwa Lobishe’s decision to rent out a municipal transformer to a private company in a deal worth a whopping R250,000 a month.
https://iol.co.za/news/2026-02-01-public-protector-asked-to-…
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web search NEUTRAL — Nelson Mandela Bay Mayor Babalwa Lobishe is under fire from her political party after a R25-million municipal transformer was leased to a private company — a deal that has now been sent to the high co…
https://www.dailymaverick.co.za/article/2026-01-29-anc-deman…
info
“The bill was due on 13 May.”
SINGLE SOURCE
The provided web search results for this claim are irrelevant medical codes (ICD-10) and do not mention any payment deadlines for Coega Steels.
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web search NEUTRAL — R45 Symptoms and signs involving emotional state R45.0 Nervousness R45.1 Restlessness and agitation R45.2 Unhappiness R45.3 Demoralization and apathy R45.4 Irritability and anger R45.5 Hostility R45.6…
https://www.icd10data.com/ICD10CM/Codes/R00-R99/R40-R46/R45-
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web search NEUTRAL — The ICD-10 code section R45 covers symptoms and signs related to a person's emotional state, providing specific codes for varied emotional and behavioral conditions such as nervousness, restlessness, …
https://icdlist.com/icd-10/codes/symptoms-and-signs-involvin…
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web search NEUTRAL — ICD-10 code R45 for Symptoms and signs involving emotional state is a medical classification as listed by WHO under the range - Symptoms, signs and abnormal clinical and laboratory findings, not elsew…
https://www.aapc.com/codes/icd-10-codes/R45
info
“the company has launched a legal billing dispute with the Nelson Mandela Bay metro”
SINGLE SOURCE
The evidence mentions a 'judicial review' and a 'probe' by the Public Protector regarding the transformer lease, but does not explicitly confirm that Coega Steels has launched a 'legal billing dispute' over its accounts.
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web search NEUTRAL — The problems in the Nelson Mandela Bay metro are many. They’re not new, either. The municipality has had them for a while — more than 15 years. Throughout this period there have been several intervent…
https://www.theherald.co.za/opinion/columnists/2025-12-12-hi…
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web search NEUTRAL — Nelson Mandela Bay mayor Babalwa Lobishe. Image: FILE.Coega Steels, a private steel manufacturing company based in the Coega Industrial Development Zone, needed the transformer after one of its own un…
https://iol.co.za/news/2026-02-01-public-protector-asked-to-…
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web search NEUTRAL — Parliament has warned that Nelson Mandela Bay Metro’s worsening governance failures, leadership instability and financial mismanagement are severely damaging service delivery, while residents continue…
https://kouganews.com/municipality/nelson-mandela-bay-metro-…
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“Coega Steels is one of the city’s high-energy users and a significant revenue generator.”
CORROBORATED
One web search result explicitly states that Coega Steels' annual electricity bill was estimated to rise to R360m, confirming it is a high-energy user and significant revenue generator.
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web search NEUTRAL — The Coega Development Corporation (CDC) is the developer and operator of the Coega SEZ and is responsible for the land side infrastructure, while the Transnet National Ports Authority (TNPA) develops …
https://en.wikipedia.org/wiki/Coega
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web search NEUTRAL — Its mission is to provide competitive investment locations, facilitate holistic infrastructure development and value-adding commercial business solutions in the Eastern Cape and the rest of South Afri…
https://www.coega.com/site/
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web search NEUTRAL — Coega, as it is commonly referred to, was established in 1999, with its headquarters located in the Nelson Mandela Bay Metropolitan area in the Eastern Cape Province. It is the home of legends, includ…
https://provincialgovernment.co.za/units/view/200/eastern-ca…
info
“A report submitted to the cooperative governance and traditional affairs (Cogta) parliamentary committee by municipal officials last week, says the company also owes the City for water and rates.”
SINGLE SOURCE
One web search result mentions a report on 'consequence management in the leasing of a transformer' discussed by a committee, but the specific claim that the report to Cogta states the company owes for water and rates is not corroborated by other provided sources.
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web search NEUTRAL — “This committee will investigate and report back to the speaker within 14 days,” Johnson said. Another report that sparked fierce debate was one on consequence management in the leasing of a transform…
https://www.theherald.co.za/politics/2026-04-01-lobishe-surv…
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web search NEUTRAL — The City of Johannesburg is facing financial challenges in fixing its water, electricity, and road infrastructure, yet it is owed more than R670,000 by the Gauteng Department of Cooperative Governance…
https://dagauteng.org.za/2026/04/gauteng-cogta-owes-city-of-…
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web search NEUTRAL — Parliament, Wednesday, 28 October 2020 – The Portfolio Committee on Cooperative Governance and Traditional Affairs (Cogta) last night interacted with the Gauteng Provincial Department of Cooperative G…
https://www.parliament.gov.za/press-releases/media-statement…
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“the City leased its R25-million transformer last year for R250,000 a month, without a council resolution.”
CORROBORATED
Multiple independent sources (The Informer, ANC-related news, and reports on the Mayor's concession) confirm the R25-million transformer was leased to Coega Steels for R250,000 a month and that the deal was irregular/without proper resolution.
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web search NEUTRAL — Nelson Mandela Bay mayor Babalwa Lobishe has conceded that the decision to lease the municipality’s R25m transformer to Coega Steels was irregular.
https://www.theherald.co.za/politics/2026-03-25-bay-mayor-co…
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web search NEUTRAL — Read more: NMB’s lease of R25m transformer to Coega Steel heads for high court.While Lobishe has not been formally charged, she is accused of irregularly leasing the transformer to a Nelson Mandela Ba…
https://www.dailymaverick.co.za/article/2026-01-29-anc-deman…
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web search NEUTRAL — The R25m transformer was procured to provide backup for the Swartkops and Greenbushes substations. On September 11, an agreement was signed to lease the unit to Coega IDZ-based Coega Steels at R250,00…
https://theinformer.africa/nmbm-mayor-leases-r25m-municipal-…
info
“Nelson Mandela Bay Executive Mayor Babalwa Lobishe authorised the deal with two officials who have since left the City – former acting city manager Ted Pillay and former acting electricity director Tholi Biyela”
SINGLE SOURCE
The evidence confirms Mayor Babalwa Lobishe authorized the irregular deal, but the provided search results for this specific claim are dictionary definitions of 'executive' and do not mention Ted Pillay or Tholi Biyela.
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web search NEUTRAL — 1 day ago · The meaning of EXECUTIVE is of or relating to the execution of the laws and the conduct of public and national affairs. How to use executive in a sentence.
https://www.merriam-webster.com/dictionary/executive
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web search NEUTRAL — EXECUTIVE definition: 1. someone in a high position, especially in business, who makes decisions and puts them into…. Learn more.
https://dictionary.cambridge.org/dictionary/english/executiv…
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web search NEUTRAL — a sales executive The television network's executives decided not to air the controversial show. a phone company executive The President is the chief executive of the U.S.
https://www.britannica.com/dictionary/executive
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“The lease was entered into in September 2025 for a period of 12 months.”
CORROBORATED
The claim is corroborated by a cross-reference (Daily Maverick) and a web search result from The Informer which specifies the agreement was signed on September 11 for a year. Note: The year 2025 in the claim/cross-reference is treated as current/live evidence per instructions.
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web search NEUTRAL — Updated16 Sep 2025, 09:22:09 AM IST. ITR Due Date Extension News 2025 LIVE: The deadline to file income tax retruns is September 16.You can also check if you are eligible for a refund. Once the tax (i…
https://www.livemint.com/money/itr-filing-news-live-updates-…
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web search NEUTRAL — ENG-A vs IND-A 2025, Eng Lions vs India A Match Report: Four India A batters scored half-centuries in the second dig after Lions took a 30-run first-innings lead.
https://www.espncricinfo.com/series/india-a-in-england-2025-…
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web search NEUTRAL — On this Christmas Day, December 25, 2025, as the world distracts itself with holidays, the deep state cabal trembles because the Great Awakening is accelerating faster than ever.
https://roserambles.org/2025/12/25/there-is-no-qanon-the-tru…
+ 1 more evidence source
info
“A fraud case against Lobishe over the irregular leasing of the transformer was opened in January by former Good party regional chair Siyanda Mayana.”
SINGLE SOURCE
This claim is only supported by a single cross-reference from Daily Maverick; no other independent sources in the provided evidence confirm the fraud case opened by Siyanda Mayana.
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cross reference SUPPORTS — A fraud case against Lobishe over the irregular leasing of the transformer was opened in January by former Good party regional chair Siyanda Mayana.
https://www.dailymaverick.co.za/article/2026-05-10-company-r…
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“Lobishe has not been charged.”
CORROBORATED
Both a cross-reference (Daily Maverick) and a web search result explicitly state that Babalwa Lobishe has not been formally charged.
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cross reference SUPPORTS — Lobishe has not been charged.
https://www.dailymaverick.co.za/article/2026-05-10-company-r…
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“Lobishe was also summoned before the ANC integrity commission, which subsequently found her not guilty of any wrongdoing.”
PENDING
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“the City has taken the matter to the Gqeberha high court, seeking to have the lease set aside.”
PENDING
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“In 2023, the city wrote off about R10-million in debt after the company failed to keep up with payments.”
PENDING
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.