The Democratic Alliance (DA) is opposing the Gauteng department of sports decision to take over management of the FNB Stadium, saying the move will have a negative impact on service delivery.
The Department has expressed an interest to discontinue the private management of the FNB stadium. Sports and recreation director-general Alec Moemi, reportedly told the Sunday Times that government wanted to acquire the stadium.
The iconic stadium has been under the management of private company, stadium management South Africa (SMSA) since 2009.
The company is responsibly for other stadiums including the Orlando stadium, Dobsonville and the Rand stadium.
“The current management arrangement of FNB Stadium has saved the public R492 000.00, since its inauguration and has brought in subsidiary economic opportunities to the City of Johannesburg in excess of R1.6 billon,” said Paul Willemburg, the DA Gauteng Spokesperson for Sports, Recreation, Arts and Culture in a statement.
The DA says that the annual management cost of the FNB Stadium is R54 million a year.
Through its risk management agreement, SMSA saves the City of Johannesburg’s R54 000 000 per annum in operating fees .
Moreover SMSA is not funded by government nor is any management fee paid by government. SMSA retains 63% of the profits produced from activities that happen at the stadium and the City receives the remaining 37 % of the balance.
The DA says that an attempt to re-configure this arrangement will have a negative impact.
” If the stadium is to be solely managed by government, the City of Johannesburg will lose a source of revenue and there will be less funds available for service delivery projects,” said Willemburg.