NELSON MANDELA METRO WORLD CUP FUNDING FIASCO

The Eastern Cape government needs to clarify claims by the Nelson Mandela Metro that it was short changed by R538 million on funding for being a host city during the 2010 Soccer World Cup.

How the Metro could incur this expenditure without proper assurances in place is highly negligent as it has wrecked havoc with the municipality’s finances and resulted in service delivery being drastically curtailed.

The Democratic Alliance is not prepared to let this matter simply lie and is demanding accountability all levels for this fiasco.

According to the Metro, its contribution should have been R340 million, but it eventually paid R878 million from its coffers.  It claims the provincial and national government did not fulfil their part of the deal.

In an understanding between National, Provincial and Local government, the costing ratio to fund the World Cup would be on a 70:20:10 percent basis.  According to the Metro “hosting costs were subject to an understanding, for which no contractual basis exists. Costs that were understood to be subject to this understanding were the construction of the stadium and the total operating costs.  The Bus Rapid Transport (BRT) system was to be funded 100%.

National government paid R2.305 billion as Gazetted but actual costs were R2.384 billion, causing a shortfall on R78.735 million.

The payment by the Eastern Cape Government was R 222 million, while its 20% share totalled R681.154 million, leaving a shortfall of R459.154 million.

The municipality’s obligation in terms of the 70:20:10 understanding was R340.577 million but it ended up paying R878.467 million, R537.890 million more than was expected.  For the Metro’s report, click here:

2010 WC Consolidated Report to MPAC 8 Feb 2011

While the hosting of the world cup was a great success story for this country and supported by all, this Metro has been conned by national and provincial government to pay more for this event than they were required to do so.

The recent offer in the media by the MEC for Local Government asking the Metro to apply for additional provincial funding when his cohorts have not met their provincial world cup obligations is laughable.

I have written to the MEC for Local Government, Mlibo Qoboshiyane, asking how much funding is available to the Metro and when this funding can be forthcoming.

I will also be challenging the MEC for Finance, Phumulo Masualle, to explain why this money can’t be paid to the Metro and why the Metro has been left to carry the can.

If necessary, depending on the reply from the MEC for Finance, I will take up this matter with the Auditor General.

Furthermore, provincial and national departments owes Nelson Mandela Bay R39 million for municipal services rendered.  This escalates the total to R576.904 million owed to the Metro.

This state of affairs is unacceptable.

Where the DA governs it governs better!

This fiasco did not happen under any DA-lead Metro council in the country.

It is time for change-the upcoming municipal elections give us all the opportunity to create this change by electing a DA governed council in the Metro.