By Anél Powell
Executive Mayor Helen Zille on Monday placed an immediate freeze on contract appointments for the 2010 Soccer World Cup, pending a comprehensive financial audit of Cape Town's capacity to host the event.
And a much-needed R31-million is being transferred from the city's capital budget to the ailing fire and rescue services.
After hearing in the first open multi-party government (executive mayoral committee, mayco or MPG) meeting that the city would have to provide at least R1-billion - the total capital budget for 2006 - to build the new Green Point stadium, Zille said: "Do we build this stadium or do we get essential services, like sewerage, to the poor?"
Continues Below ↓
The deadline for key appointments, from architect to project manager, was set for Monday, but Zille said it would be unfeasible to "rush decisions" without examining the financial implications of the project.
A total of R500-million for the stadium would come from the province, leaving it up to the city to fund the remaining R1-billion.
With a tight deadline of 2008, Zille said the city would have to borrow funds while it waited for income to be generated, and "this will have the most profound impact on the city".
She told chief operations officer Rushj Lehutso, who presented a lengthy project overview: "Go back and rather give us the financial model." Zille said any rash decision taken for 2010 could "bankrupt the city".
Executive committee member for finance Ian Neilson said: "We want to make it happen, but the question is how?"
He said the estimates were "not affordable by the city".
Neilson said: "If one looks at the financial flow it's clear that Fifa gets a massive injection but no cash flow is coming to the city." He meets Lehutso on Tuesday to study the 2010 cash flows.
Continues...
|
StumbleUpon
Reddit
Digg
Delicious
Newsvine
Facebook
muti
Twitter
