Cape Town - Millions of rand have been allocated to the loss-making Cape Town Stadium for the appointment of a company secretary and finance boss despite concerns that further requests for funding and ongoing additional costs could burden ratepayers.
The City council approved R2.5 million a year funding for the appointment of a chief financial officer and company secretary for the Cape Town Stadium SOC. The entity started operating on February 1.
It was further resolved that the management plan and future independence-oriented plans urgently be presented to the mayoral committee.
A discussion was held in the mayoral committee about a request for additional funding.
During the meeting it was stated that the decision to establish the entity was made on the basis of managing costs.
Mayco member for safety and security JP Smith expressed concern that further requests for funding and ongoing additional costs could be setting a precedent and come as a burden for ratepayers.
Mayco member for economic opportunities and asset management James Vos suggested that a comprehensive presentation be made to inform the mayoral committee regarding the situation with the Cape Town Stadium.
The City’s chief financial officer Kevin Jacoby said the request for funding was specifically required to improve the independence of Cape Town Stadium (RF) SOC.
“As well as to create more capacity for the entity to execute its governance functions as required of a company by legislation,” Jacoby said.
On March 29 last year the council approved the establishment of a municipal entity to manage and operate the Cape Town Stadium.
The council also resolved that the City continue to provide all the support services for three years, at no cost, which is regulated by a service delivery agreement.
ANC councillor Luvuyo Zondani said they were in support of the proper running of the Cape Town Stadium, but wanted a fairer share of funds. “We can’t just be splashing out for assets in rich areas. What about the poorer areas. We support this, but we are pleading for a fairer distribution,” he said.
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.
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