By Patrick Cull

The Nelson Mandela Bay municipality is to borrow R482-million of which R335-million has been set aside for the 2010 World Cup Stadium.

This was disclosed at Wednesday's budget and treasury committee meeting when the DA‘s Elizabeth Trent accused Mayor Nondumiso Maphazi of misleading the people, saying the R335-million had been “smuggled” into the budget.

The R335-million, however, may not be used with municipal manager Graham Richards explaining after the meeting that negotiations were under way with National Treasury to provide the additional funds for the stadium that will now cost R1,3-billion.

Speaking during the debate on the issue, DA caucus leader Leon de Villiers said that his party was totally opposed to the municipality having to pay the R335-million, adding that the DA therefore rejected the proposal to access a loan and wanted Maphazi to ensure the shortfall was covered by national and provincial government.

Robin Williams (DA) added that if the R482-million loan was taken “then we are looking at between six and seven per cent increase in rates next year, just for this.”

Explaining the financing of the stadium, Maphazi said it had been agreed that national government would pay 70% of the cost of the stadium, province 20% and the host cities 10%

This was “nothing new and nothing has changed”, she said, adding that national government would be asked to increase its contribution to cover the escalation costs.

Deputy mayor Bicks Ndoni said the municipality could not expect to get the stadium without some contribution, noting that it was already receiving R1-billion in funding for transport infrastructure required for 2010.

“We have to put something in, it is our stadium,” he said, with committee chairman Marsla Odayer adding: “The DA is saying we must make no contribution, just benefit.”

Source: The Herald