Cape Town cannot throw millions of rands of public money into starting the Green Point Stadium project without an assurance that it will be completed, mayor Helen Zille said on Tuesday.
Zille was responding to an African National Congress appeal not to use the 2010 Soccer World Cup as a ”football to score cheap political points and to settle election battles”.
The ANC said it and the portfolio committee on sport and recreation were concerned about Zille’s statements earlier on Tuesday on the planning and construction of the stadium for the 2010 cup.
It was important for all stakeholders to realise that South Africa’s hosting the 2010 cup was a matter of national and international importance.
The assumptions contained in Zille’s statements were factually incorrect and also displayed a lack of understanding of agreements between the government and the 2010 local organising committee on the funding model for constructing and upgrading stadiums where 2010 cup games would be played, the ANC said.
It was factually incorrect to assume that R1-billion was required from the city’s coffers to construct the stadium.
The ANC called on Zille and her executive committee (Mayco) to urgently meet with the 2010 local organising committee and the provincial government ”to familiarise themselves with the matter”.
Later on Tuesday, Zille said she would be very happy to meet international soccer body Fifa’s local organising committee and representatives of the provincial and national government to discuss the project’s financing and other aspects of the World Cup.
But, on the basis of statistics presented to Mayco on Monday, it was clear the stadium would cost at least R1,5-billion to build.
”At most, the city can expect to receive R500-million from national government and will have to find the remaining R1-billion,” she said. On the basis of these preliminary statistics, it would be grossly irresponsible to give the nod to the project.
Detailed costings were required to show exactly what the project would cost, where the money would come from, what the medium- and long-term financial implications were, and whether it would be sustainable.
”On the basis of the presentation we have received, it is clear that Fifa will benefit greatly. We must see what finance-flows will accrue to the city,” she said.
”The statistics presented in the intemperate ANC attack show exactly why the city suffered such financial mismanagement under ANC rule.”
Even if the government was prepared to make R30-million available for preliminary investigative work for the stadium, how did that make a R1,5-billion project more affordable to Cape Town ratepayers?
The full financial model had to be seen before a responsible decision could be taken.
”We want Cape Town to hold prestigious matches for the World Cup. The only question is how we can do this in a way that is affordable. For the time being, we cannot throw millions of rands of public money into starting this project unless we can be sure we will be able to finish it,” Zille said. — Sapa