The expenditure budget for 2017/18 was R43.5m. The entity, known as Cape Town Stadium SOC, started operating on February 1.
Cape Town Stadium chief executive Lesley de Reuck said the entity was officially registered as a company with effect from November 1 last year, with its official name being the Cape Town Stadium SOC (RF) Limited.
But now council has the task of approving a service-delivery agreement to regulate services such as human resource support, internal auditing, risk management, accounting, financial management and budgeting - the City will provide support for this. A report will be tabled at the mayoral committee meeting today, 15 August, and later this month at council.
“The Cape Town Stadium will strive to achieve financial sustainability through the maximum possible leveraging of the commercialisation opportunities presented by the establishment of a flexible public and private governance and management business vehicle,” De Reuck said.
In March, the council resolved that a municipal entity be established to manage and operate the Cape Town Stadium.
The entity will be a state-owned company, with the City of Cape Town being 100% shareholder.
City manager Lungelo Mbandazayo will be authorised to second the relevant staff to the entity for a three-year period.
Currently on the board is Peter-John Veldhuizen (chairman), Martin van Staden, Samkelo Blom, Viola Manuel and Limia Essop. Barry Lodewyk resigned from the board last month.
According to the City, in the service- delivery agreement with the entity, the entity will be appointed for a period of 50 years, with an option to renew for a further 49 years, in terms of the required Municipal Asset Transfer Regulation. The entity will manage and operate the stadium precinct, with the possibility of extending the management function to the wider Green Point Park precinct in future.
The municipal entity will not be liable for rates, but will be liable for service charges including water and electricity.
The City shall pay for use of the facilities, including any of its invitees, in terms of the municipal entity’s standard rates, unless otherwise agreed by the parties.
The venue built for the 2010 Fifa World Cup at a cost of R4 billion is also looking for bidders who want to attach their names to the stadium.
The City is in a process of appointing a company to conduct an auction for naming rights.
In its public submission, the Green Point Ratepayers’ and Residents’ Association said certain clauses established key performance indicators and the process for establishing and reporting on them.
“However, there is no provision for a suitable process to tie management remuneration to these performance indicators,” it said.
The Mouille Point Ratepayers’ Association questioned what would happens after the three-year period of the staff secondment and support services.
In response, the City said the support services would be negotiated after the three years.