By Isaac Mahlangu

The City of Joburg owes itself at least R3-million in unpaid bills for a showcase stadium earmarked for the most spectacular events of the 2010 Soccer World Cup.

The amount owed by FNB Stadium in Nasrec relates to unpaid rates, water and sewerage services. The money has been outstanding for more than four years.

The stadium, known as Soccer City, is scheduled to host the World Cup's opening and closing ceremonies and matches.

Council spokesman Virgil James said "the necessary processes are under way to recover the outstanding monies". The stadium's electricity is supplied separately by Eskom, but Metro could not immediately establish if there were monies outstanding there.

Although Joburg residents may complain that their services are terminated if they miss rates payments, James said FNB Stadium was not receiving any special treatment.

He said the city had an "approved credit control policy with regards to the recovery of arrears from defaulting account holders".

The City of Joburg effectively assumed ownership of the stadium site in January, when it was handed over by the South African Football Association (Safa).

But James said owning a stadium is not one of council's "core competencies" and ownership will be discussed "at some point", whereupon the building could be handed back to Safa.

Now, the government is pumping big bucks into the stadium's redevelopment in line with stringent Fifa specifications.

The R1.5-billion refurbishment, which began in February, will include extending the stadium's upper tier, adding an encircling roof, developing new change rooms and replacing the floodlights.

Once it is finished, the FNB Stadium will resemble a giant calabash and have seating capacity for 94000 people.

Dennis Mumble, executive director of the 2010 Local Organising Committee, who managed the FNB Stadium prior to Joburg council's takeover three months ago, said the arrears on the stadium's municipal account existed before the building was taken over by Safa, about four years ago.

Mumble said it was previously managed by the National Soccer League.

"For as long as I was at the stadium, we paid those rates. The debt preceded Safa's takeover," Mumble said.

James confirmed that a "lump sum payment" in favour of the stadium's account was received in December.

He said the city was still in the process of recovering the shortfall, but he would not confirm that this amounted to R3-million.

"We are not at liberty to disclose the outstanding amount, as this is confidential information," he said.

James said the city received an application from Safa Trust to be exempted from paying certain rates and services.

"These [exemptions] are usually favourably considered as the city plays a key role in the sustainability of some major sports facilities, for example Ellis Park, Wanderers Cricket Ground and most of the golf courses within the jurisdiction of the city."

Mike Moriarty, leader of Joburg's Democratic Alliance, said his party would do all it could to ensure that the money owed was not written off.

"As far as we are concerned we are not satisfied until we are in a position to have some kind of permanent stake in the stadium, which would then generate an income to recover the R3-million."

Recently, the R80-million Safa House building, that looks like a giant soccer ball, was completed inside the stadium precinct.

All the other stadiums in South Africa earmarked for major refurbishment for the World Cup are owned by municipalities.

Sunday Times