Insufficient government planning is behind the crisis in funds for the building of stadiums for the 2010 Soccer World Cup, the Democratic Alliance (DA) charged on Wednesday.
”The insufficient planning is clear in the 2004 estimate of R1,6-billion for the upgrading and construction of 13 and not 10 stadiums,” said DA spokesperson James Masango. In 2005, the estimate was R2,5-billion.
”Now, in 2007, the R12-billion promised by the National Treasury is still at least R2,5-billion less than the cities need to build or upgrade stadiums.
”A glance at these price estimates shows that the rapidly escalating cost can largely be attributed to insufficient planning by the government,” said Masango.
The DA is enthusiastic about 2010, but cities cannot be expected to fund this escalation out of ordinary ratepayers’ money, he said in a statement.
”If cities are forced to spend huge excess amounts they run the risk of going insolvent or having to postpone, for many years, the badly needed capital development for the benefit of ratepayers.
”The government must come to the party, because clearly funds are not a problem for it.”
Masango said it is the inability of the government to produce accurate costs that is placing the populace at risk of having to pay for the stadiums.
”Government must immediately tell us where the money will come from and how the shortfalls can be financed.
”The treasury must find a way to afford the best possible stadiums without taxing the pockets of citizens.”
The government has always promised that South Africans will benefit from the tournament and that their quality of life will not be compromised by spending on infrastructure.
”If the cities have to pay for the stadiums, it could totally negate all the positive economic effects that the World Cup should have on our cities.
”This is unacceptable as the ratepayers in the cities will suffer.”
Masango said the treasury should immediately commit to a budget review.
”Should shortfalls reach an extent where the National Treasury has to supplement the building and renovations, then they must do so to prevent ratepayers footing the bill.
”And until the stadiums are finished, regular budget reviews should be held to correct other situations where budgets may have been incorrectly compiled.” — Sapa