City to hand over reigns

2017-03-28 06:03

It has been recommended that a municipal entity be established to manage and operate Cape Town Stadium.

The City of Cape Town’s mayoral committee last week approved a recommendation to the council that a municipal entity be established to oversee the stadium precinct area.

This entity will be a state-owned company, fully owned by the City, explains Johan van der Merwe, Macyo member for finance.

“Our goal is to minimise the financial losses of the stadium and to maximise the potential income streams by increasing the use of the stadium.”

The municipal entity will have an independent board, which will be tasked with appointing a specialised management company. There will be a service delivery agreement between the City and the entity.

The functions of the entity will include general facility and operations, events and entertainment services management, commercialisation, marketing and hospitality management, and finance, legal and administration management, explains Van der Merwe.

The City staff who currently manage the stadium will be seconded to this municipal entity for three years.

The entity will be appointed for 50 years, with an option to renew for another 49 years. The entity will manage and operate the stadium surrounds, with the possibility of extending the management function to the wider Green Point park.

The City will provide support services to the municipal entity for three years, including human resource support, internal audit, risk management, accounting, financial management, and budgeting support.

“‘We are committed to enhancing the financial sustainability of this key strategic asset, as well as its benefit to the broader community and the city’s economy,” says Van der Merwe.

It has been recommended that a municipal entity be established to manage and operate Cape Town Stadium.

The City of Cape Town’s mayoral committee last week approved a recommendation to the council that a municipal entity be established to oversee the stadium precinct area.

This entity will be a state-owned company, fully owned by the City, explains Johan van der Merwe, Macyo member for finance.

The municipal entity will have an independent board, which will be tasked with appointing a specialised management company.

The functions of the entity will include general facility and operations, events and entertainment services management, commercialisation, marketing and hospitality management, and finance, legal and administration management, explains Van der Merwe.

The City will provide support services to the municipal entity for three years.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

Inside News24

 
ADVERTORIAL
Competition regulation for a growing and inclusive economy

ADVERTORIAL: The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.

/News
Traffic Alerts
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.