PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
KevinKing
 
Comments: 26
Article views: 2618
 
 
Latest Badges:



 
View all KevinKing's badges.
 

World Cup White Elephants

17 April 2014, 05:30

To most it’s no surprise that stadiums built for the 2010 World Cup are white elephants, standing around empty most of the time, eating into budgets meant for service delivery.  We were warned by naysayers and stakeholders who had common sense.  But in the end we dove head first into a multi-billion rand spending spree to throw the most expensive one night stand this country has ever seen, totally oblivious to massive bid-rigging and collusion by construction companies and negligent to the future financial liability of keeping these stadiums.  A few years down the line we are left to deal with this World Cup legacy.

1.       Cape Town Stadium – Recently this stadium has been back in the news as WP Rugby Union (WPRU) apparently re-enter talks with the City of Cape Town about the possible move of WPRU to Cape Town Stadium, away from Newlands.  Costing R4.5 billion to build, this World Cup stadium had raked in R92 million as at last year May while the operating costs were R432 million.  That’s R340 million LOSS.  It was even proposed that the City sell the stadium to WPRU for R1.  That’s ONE rand!  Being a fairly well run business I can see why WPRU would think twice before accepting a loss generating asset aka liability.  Thus there have been several suggestions to knock it down or to turn it into low cost housing but these options have been strongly opposed by those who wish to avoid admitting their horrendous business blunder.  Nevertheless it is standing, hosting the occasional concert and it’s also the home to Ajax Cape Town whose home games average 6,000 people, 10% capacity.  While this continues the City is paying back millions each year in loan repayments for the stadium.

2.       Mbombela Stadium – This was a cash cow from the start as it emerged that there was fraud and corruption involving the tenders to build the stadium.  Not surprisingly it involved the manager of the municipality.  Also not surprisingly, the previous manager was killed while fighting corruption relating to the stadium tenders.  To most, it would appear to be an assassination…  Last year it was reported that the stadium was turning over between R2 – R3 million a year while operating costs came to about R12 million per year.  It had only hosted about 40 events in the three previous years, that’s about one per month, so nothing much happens there.  The municipality continues to struggle paying off its loan for stadium and have attempted to take out a loan to pay off this loan, which the municipality will be struggling to pay off for another decade, further hindering service delivery.

 

3.       Nelson Mandela Stadium – Another stadium, more excuses on why the stadium ran into a R19.3 million loss for the previous financial year.  The stadium does have its fair share of events, hosting PSL fixtures, Vodacom Cup, cricket, concerts and international sporting tournaments however it has yet to break even.  “If you ask me whether a R2.4-billion stadium should have been built in Port Elizabeth, I would say no" - CEO of the Nelson Mandela Bay Development Agency.

4.       Moses Mabhida Stadium – Fresh off its record loss of last year (R34.6 million), there seems to be little hope in sight for this “most beautiful white elephant”.  With the budget deficit sitting at well over R100 million, the stadium continues to almost beg for events and is literally “giving away tickets” to poorly attended PSL games.

On a positive note, FNB Stadium continues to turn in profits as the lion’s share of big concerts and international sporting events continue to go its way.  But as a profitable unit it continues to be the only one. 

The big question should be around the sustainability of these stadiums.  The longer we keep them around the more losses accumulate, losses which these municipalities can ill afford considering their financial status and the problems with service delivery.  With the exception of FNB Stadium, knocking them down seems to be the only financially viable option to avoid further losses.  Or do we keep them as costly sentimental relics?

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.
 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
26 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
Thulane Che Trosky
The R 6 million Zuma spent.

When making ludicrous decisions neither the ruling party nor any individual seem to really worry of how they are exploiting and misusing state and or taxpayers money. Read more...

3 comments 108 views
Submitted by
Thulane Che Trosky
The PWD and the billions

The Minister of Public Works in the National Assembly tabled a report that the Department which he manages, cannot account for an approximate R 35.9 billion. Read more...

1 comments 161 views
Submitted by
Adv Sphamandla Blose
Our heritage, our culture

Celebrating the importance of the Heritage month, Xhosa traditional clothing is one of the most recognised attire that symbolises the rich culture which brings its own vibrancy to our diversity. Read more...

12 comments 508 views
Submitted by
Vulcan Trekkie
What makes you African? Tackling ...

So what makes you African? Is it the colour of your skin? Is it the continent you where born on? Is it your culture, your language or something else? Read more...

28 comments 458 views
Submitted by
Kalos eidos
Obama's UN Speech. How can we bel...

His speech smacked of a New World Order bent, without resorting to the term outright, he used words and phrases like unity, collective, an interconnected world; enforce international norms and so on.  Read more...

35 comments 1099 views
Submitted by
luckyluke
Blind loyalty

What is it that Zuma has that instils the blind loyalty we witness from his most senior appointees in his Cabinet? Read more...

13 comments 364 views

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Deal of the week!

20% off Afrikaans books, music and DVDs. Offer valid while stocks last. Shop now!

Save up to R1000 on Hisense smartphones!

View the large range of Hisense smartphones. Buy today and save up to R1000!

Hot gaming titles – available for pre-order!

Call of Duty: Advanced Warfare Day Zero Edition, Far Cry 4, Grand Theft Auto 5 and more. Pre-order now!

Get a free eBook

Buy 3 eBooks and get the cheapest FREE. Offer valid while stocks last. Shop now!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on your iPhone Get News24 headlines on your iPhone.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

Calais Website keywords automated by OpenCalais.

 
Interactive Advertising Bureau
 
© 2014 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.