Durban - R3.4 billion: that’s the staggering amount South African taxpayers are set to pay out to host the 2022 Commonwealth Games in Durban.
The revelation was made during the eThekwini Municipality’s executive committee meeting at the city hall on Tuesday in a progress report tabled by municipal manager S’bu Sithole.
The report came a month after the Commonwealth Games bid evaluation committee all but gave Durban’s bid the thumbs-up, after the city of Edmonton, in Canada, withdrew from the race in February. Durban is expected to be announced in Auckland, New Zealand, on September 2, as the host city for the games.
The report seeks Exco’s approval for R500 million towards the total R3.2bn budget required. The provincial government is also expected to contribute about R500m, with the national government paying the remainder.
In February, South Africa paid almost R98m to bid for the games - with 50% of the amount split between eThekwini and the provincial government. Of the city’s R17.5m share of this amount, Tuesday's report states this was “approved ... for the professional and design fees.”
“On May 4 the budget proposal was presented to the major events sub-committee, and the members of the technical major events subcommittee. eThekwini had finance representation in the meeting as a key stakeholder in partnership with KZN province.”
At a meeting where the budget for the hosting of the games was tabled, attended by Premier Senzo Mchunu and Sports Minister Fikile Mbalula, the provincial Sports and Recreation Department and eThekwini “were requested to make commitment towards the hosting costs as per the proposed budget”.
“The premier requested the major events sub-committee, which has mayor James Nxumalo as principal member, to prepare a budget proposal for consideration by all relevant stakeholders,” the report reads.
A breakdown of the figures indicates that R124m would be spent on “sports venues (overlays and equipment)”, R164m on the Commonwealth village (services and overlays), R633m on “games workforce”, R391m on “advertising and promotions”, R103m on “administration”, R40m on “readiness/ test events and meetings” and R324m on “project management fees”.
Sports facilities would require R330m while a further R1.3bn would be spent on the construction of a new Commonwealth Games village.
The major events sub-committee recommended that “there must be a national budget allocation for the construction of the athletes’ village” at Cornubia.
“The task team will also prepare a detailed assessment of the proposed budget and ensure that there is no undue profiteering by individuals or entities within the process.”
Exco was also asked to consider “the creation of a special reserve fund to meet future financial commitments related to the games”.
“Once exco has approved the proposed financial commitments, the technical sub-committee of major events will prepare a detailed multiyear budget leading up to 2022 with clear milestones and financial requirements each financial year.”
The R1.1bn tab to be shared between eThekwini and the province excluded “provincial and city-specific initiatives as part of the necessary activation, marketing and mobilisation programmes in preparation for the hosting”.
Sithole said the city’s R500m share would be budgeted over seven financial years.
“You’ll note that benefits to eThekwini are very high - not just in terms of tourism, but we’ll have the opportunity to implement a whole range of legacy projects which will be implemented in all areas in terms of revamping our infrastructure - especially in areas we are not doing well in terms of infrastructure provision. By the time we finalise the bid process, we’ll know what those contributions are.”
He said the city would start budgeting for the games from the financial year after the bid process completion.
“The good thing is that historically, the costs of hosting this event are borne by the cities themselves. But in South Africa we have a unique position where national and provincial departments participate in lessening the burden on the city,” he said.
DA caucus leader Zwakele Mncwango said he had reservations about eThekwini and the provincial Human Settlements Department sitting on the same committee following an apparent fall-out over funding last month.
Seeking clarity, DA councillor Heinz de Boer asked who would be footing the rest of the bill.
“Information about the Commonwealth Games is not secret. There are people talking all the time about what will be happening - and particularly they are talking about what will happen with the village,” he said.
“We need to place on record that we are going to be following the process very carefully. We do have a lot of information about what is being proposed and not.”
These remarks raised the ire of ANC councillors, with Nigel Gumede saying De Boer was suggesting there was corruption.
“He mustn’t taint us… make insinuations based on assumptions,” Gumede said.
The Mercury