Cape Town - The City of Cape Town says the R2.3 million it lost in cancellation fees when it was forced to suspend the World Summit of Nobel Peace Laureates last year, was a “waste of taxpayers’ money”.
“The monetary repercussions for the 11th-hour cancellation of the World Summit were clearly evident for all, except the national government,” said Garreth Bloor, mayoral committee member for tourism, events and economic development.
“For an administration that practises good governance in a well-run city, this has been an extremely bitter pill to swallow. But then, our national government has no clue what good governance is, as the wastage of taxpayers’ money is the norm for them rather than the exception.”
According to a report by Teral Cullen, director of tourism and events, the cancellation fees for the Cape Town International Convention Centre and the conference organiser were for expenses with long lead times, including the programme, website design, and safety and security planning.
Cullen said the CTICC also had to compensate two clients for displacing their events, and lost out on bookings from a further three clients who wanted to use the centre at the same time as the summit.
“As the event was cancelled at such a late stage, it was not possible to reinstate the cancelled and displaced bookings.”
She said the city had already started its preparations for the event when it was cancelled in October after several delegates indicated that they would boycott the event in solidarity with the Dalai Lama who had not obtained a visa.
“What should have been one of the most momentous events to commemorate our country’s achievement of 20 years of democracy turned out to be one of our most embarrassing moments. This embarrassment lies squarely on the shoulders of the government and the president’s silence on the matter has been deafening,” said Bloor.
The event, which was to have taken place at the CTICC for three days in October, was suspended just days before by the Secretariat of the Summit. It was eventually held in Rome in December.
The city’s budget of R10m for the event was approved by the council in August.
Bloor said that despite the financial loss, and the embarrassment at losing out on hosting the prestigious event, the city had recouped the sizable amount of R7.6m.
The mayoral committee on Tuesday approved a recommendation to reallocate the remaining funds, with R2m going to contracted services at the Cape Town Stadium, R1m towards rental in the tourism and events directorate and R4.6m for various events.
Cape Argus