Nelson Mandela Bay municipality economic development, tourism and agriculture boss Anele Qaba said before going on leave he had authorised the R7.3m payment needed by Nelson Mandela Bay Tourism.
But the agency’s board chair Buli Ngomane said when the team left the office on Friday, the R7.3m had not been paid.
Qaba, who went on leave last week, said he could not actually confirm if it was paid by the department of budget and treasury.
“I authorised the payment but I’m not sure if the money was paid.
“I did mark this as urgent,” he said.
The agency had a cash crisis after the metro failed to make payments, with it getting 95% of its funding from the municipality.
It employs 28 people, including brand ambassadors, and supports a membership of around 260 private tourism products and site operators.
Along with its head office, it operates centres at the Donkin Reserve and in Uitenhage.
The funding crisis comes in the wake of the Bay council resolving during the December 4 council meeting to insource the tourism function.
Ngomane said the non-payment by the municipality led to it sending staff home in November and it was now operating with a skeleton staff.
“We had been operating at full steam to fulfil our quarterly deliverables and incurred debt in service of the city goals, while operating as per the business plan,” she said.
Ngomane said there was human cost to the delay in payment by the municipality and staff were now experiencing a bleak Christmas.
“Our staff will have a festive season without being paid bonuses or back-pay for increases owing since July if we do not receive this funding,” she said.