STATEMENT BY THE CITY'S MAYORAL COMMITTEE MEMBER FOR TOURISM EVENTS AND MARKETING, COUNCILLOR GRANT PASCOE
The City of Cape Town is, in principle, supportive of the hosting of African Cup of Nations (AFCON) 2013 matches in the City. Furthermore, the significance of this tournament for Cape Town, South Africa and the African continent is fully appreciated by the City's leadership.
However, we are strongly of the view that the process must be properly managed, from these initial stages to the actual event.
As a responsible government, this City needs to weigh the service delivery needs of all our residents with the benefits of hosting AFCON 2013. Our mandate remains to make every cent of our ratepayers money count and to maximise service delivery to all citizens. Our commitment to caring and providing for our citizens, particularly the poor and vulnerable, remains paramount. We must always ensure that money spent by the City, is done so to drive economic growth, development and inclusion.
In addition to this, the City of Cape Town is, by law, obliged to comply with legal requirements as set out in the Municipal Finance Management Act and other relevant pieces of legislation which the City is required to follow. We cannot allow ourselves to be compelled by any organisation, no matter the merits of a particular initiative to undermine our commitment to the rule of law. Nor will we write what is in essence a blank cheque for any event - no matter how significant that event might be.
The South African Football Association (SAFA) wrote to the City this week indicating that, despite our request for further negotiations, the deadline remains tomorrow, Friday 13 April, for the signing of the host city agreement. They have also given no indication that they are prepared to formally engage on the substantive issues we have previously raised with them. This is both regrettable and disappointing.
For the record, our concerns are as follows:
* There has been no clear indication of the likely cost of hosting matches. Initial estimates are R27million, but it is likely that this will balloon to R40million and perhaps beyond.
* A guarantee from National Treasury to cover a portion of the total cost has not been forthcoming. Given that hosting AFCON 2013 was a decision taken by the Presidency, a guarantee from National Treasury ought to be a material requirement. This guarantee was crucial to the success of the 2010 FIFA World CupTM. The City is proposing that National Treasury provide a guarantee to cover at least 50% of the hosting costs.
* The division of revenue between the Confederation of African Football (CAF) and the Local Organising Committee remains an unknown at this stage. The City is requesting that the LOC disclose to the host cities what it is receiving from CAF as part of its deliberations. Failing this disclosure the City is requesting that CAF and/or the LOC contributes 25% towards the event costs. The city and the Western Cape Government will be in a position to cover 25% of the costs.
* The City's request that clarity be provided around the liability of hosting the matches has, so far, been ignored. Usually, liability is shared by the host city and the host organisation. The agreement, as currently presented by SAFA, places responsibility solely on the City. This is not acceptable.
* The period prior to the event in January 2013 requires that the LOC take over the operation of the Cape Town Stadium. This will result in the exclusion of a number of events that have paid to make use of the venue. This would result in an additional loss of revenue for hosting AFCON 2013.
* Finally, it must be noted that when the City subsidises the costs of an event at the Cape Town Stadium, even for an entity such as a church or a non-profit organisation, the organisation pays a portion of the total cost. In this case, SAFA expects the City to carry the entire cost with limited revenue return.
As a party to negotiations, the City finds it inappropriate that the Local Organising Committee's CEO, Mr Mvuso Mbebe, sought to label the City in derogatory terms. Calling the City ‘racist' is rejected with the contempt it deserves. This City is committed to serving all our citizens. We are acutely aware of our obligations to the poor. Every rand spent must be in their best interest. Mr Mbebe would do well to remember this.
The City remains open to further negotiations and discussions on the above key points of concern. It is our hope and wish that SAFA will allow for the negotiation of discrepancies that currently exist in the host agreement.
Statement issued by Communication Department, City of Cape Town, April 12 2012
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