Bay suffers two-year R3m Afcon Cup hangover
TWO years after Nelson Mandela Bay hosted the Africa Cup of Nations (Afcon), the local organising committee is demanding R3-million it says the metro still owes it.
The money is for accommodation and other expenses incurred during the tournament.
The cash dispute is being thrashed out at arbitration, as the municipality is adamant it is not liable for the costs.
The metro forked out R8.4-million toward the event in January 2013, hoping to receive some of it back from ticket sales. The provincial and national government funded the remaining R32-million.
At the time, the municipality slashed the budgets for conferences and travelling, but some service delivery departments – such as infrastructure and engineering, sanitation, illegal dumping, electricity, and energy – were also severely affected.
The municipality reported to the council in 2012 that the R8.4-million would be required for a range of cup-related projects and services.
It had hoped to recoup some of the money from ticket sales, but did not get back a cent because of poor ticket sales.
Then-executive director of economic development and recreational services Zolile Siswana said the tournament had massive economic spin-offs for the city in the region of about R150-million.
This week, acting city manager Mzwake Clay presented a report to the municipal public accounts committee saying the metro had signed a host city agreement with Afcon in March 2012 to be allocated some matches and events.
Afcon alleges that in terms of the agreement, it procured Caf/ LOC accommodation, Caf/LOC local transport, insurance and broadcast power amounting to R2.973-million, which it is claiming from the municipality.
“The municipality disputes that it is indebted to Afcon in the amount claimed, or in any amount, and that the services allegedly procured were in terms of the agreement,” the report by Clay, which was tabled on Wednesday, said.
It says Afcon’s main allegations are that they procured the accommodation and transport services on the metro’s behalf.
Therefore, Afcon says, the municipality is “liable to pay for costs it incurred in procuring said services”.
The municipality, however, is adamant that it complied with all obligations and paid all bills.
The dispute was referred to arbitration in September last year.
The latest arbitration hearing took place last month, when the Afcon LOC chief executive and Afcon’s auditor gave evidence.
The hearing continues next month.
“The municipality’s prospects of successfully defending the claim are good,” Clay says in his report.
Repeated attempts to reach 2013 Afcon LOC chief executive Mvuzo Mbebe were unsuccessful.