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State limits cash for stadiums

Posted On Thursday, 08 March 2007 02:00 Published by eProp Commercial Property News
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Trevor Manuel is not budging on the R8,4 billion he has budgeted for the 2010 soccer World Cup stadiums

Helen ZilleFinance Minister Trevor Manuel is not budging on the R8,4 billion he has budgeted for the 2010 soccer World Cup stadiums.

This is after Cape Town mayor Helen Zille slammed the brakes on construction of her city's Greenpoint Stadium, saying national Treasury should underwrite the projected R180 million shortfall on the cost of building the stadium.

Speaking to journalists in Bhisho on Tuesday, Manuel said the 10% provision national Treasury has made for escalating costs was sufficient.

"In our view, this is an adequate amount," he said. "This will leave Cape Town with an amount that they have largely provided for already for additional costs."

He said a meeting between the Democratic Alliance-run metropolitan municipality, Fifa's Local Organising Committee and Deputy Finance Minister Jabu Moleketi took place yesterday where Moleketi was to communicate Treasury's view.

"We have taken a very strong view that we will fund the stadiums that comply with Fifa (requirements)."

"If any city or anybody else would like bells and whistles on top of that, they have to pay for it. We don't want to be unreasonable ... but we want to ensure that the planning capability is strengthened and so the R8,4 billion is where we have drawn the line."

Last week, the Cape Town council halted the construction of the R2,57 billion stadium, saying it needed extra funding to cover a projected R180 million escalation.

Zille said her municipality could not be expected to be a "bottomless" piggy bank, and they would have a "serious problem" if they did not get the assurance from the national Treasury.

"If we sign contracts at this stage, it will create a situation that I am unprepared to commit the City to. I cannot put the City into huge debt."

"There has to be a ceiling. People may say that R2,7 billion is a lot, but so is R180 million that could build sewerage works. We can't just add to the cost."

"We are determined to have the 2010 stadium but there is life after 2010 and we have to do it in a way that will not potentially bankrupt the city," she told a local newspaper.

Hosting a memorable World Cup might just banish Afro-pessimism, Sport Minister Makhenkesi Stofile said on Tuesday. The improvement of football management would go a long way in improving Africa's image.

"For as long as we are perceived as this corrupt people who can not manage anything, every governance system we put in place rots, this Afro-pessimism would not go away," he said.

Speaking at a workshop on the 2010 World Cup African legacy programmes, Stofile said sport administrators could take lessons from the New Partnership for Africa's Development programme.

Good managerial skills, sound financial management skills and overall good governance could result in a sport renaissance, Stofile said. A better managed football association should be one of the legacies.

"We must improve our leagues, the management of those leagues, if we want to improve the quality of our teams and regain our players (from Europe). This is an opportunity to show the world."


Last modified on Sunday, 03 November 2013 11:25

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