/ 18 March 2008

World Cup bill rises past R30bn

The South African government will spend ”upwards” of R30-billion on the 2010 Soccer World Cup, according to a report released on Tuesday.

R20-billion has so far been allocated as direct investment in infrastructure.

Deputy President Phumzile Mlambo-Ngcuka, who received the report from Sports and Recreation Minister Makhenkesi Stofile, admitted that ”in some instance” initial budget estimations were conservative and adjustments and increases had to be made.

”This expenditure is not open-ended; the capping must continue. In most of the stadiums we have reached a point where we have said the ultimate budget has been achieved. We don’t have any wild expenditure plans,” Mlambo-Ngcuka said.

The handing-over ceremony of the report held at the Union Buildings was attended by various government ministers and officials, diplomats and members of the local organising committee (LOC), including Danny Jordaan and chairperson Irvin Khoza.

Stofile pointed out that the responsibility for organising the World Cup is that of the LOC and that the government only has to create conditions for the smooth hosting of the tournament.

With only 815 days before the 2010 World Cup kick-off, he said government preparations for the event are on track. ”This report shows that we have complied with literally every guarantee that we have made. We even went beyond that,” he said.

This sentiment was echoed by Mlambo-Ngcuka, who said: ”We are very satisfied that we are on course.”

The report shows that building of the stadiums in the host cities is on track. Preparations for transport, information and communication technologies, electricity supply, safety and security, economic and social legacy projects, tourism and communication are under way.

The director general of the 2010 Fifa World Cup government unit, Joe Phaahla, however, highlighted major challenges in the coming year, including the completion of the stadiums and other infrastructure.

”We are no longer in a position to refer to paper plans, but have to see these coming to fruition, which implies an acceleration of all cluster activities,” he said.

These include a ”marked improvement” in overall perceptions of high crime in the country. Urgent attention is also needed to ensure a lasting economic legacy.

Phaahla said the coordination between the three levels of government needs to be formalised, as well as coordination between the LOC and national government. — Sapa