STATEMENT BY THE CITY'S MAYORAL COMMITTEE MEMBER FOR TOURISM EVENTS AND MARKETING, COUNCILLOR GRANT PASCOE, ON CAPE TOWN'S BID TO BE AN AFCON 2013 HOST CITY
The City of Cape Town is committed to being a Host City for AFCON 2013 and is excited by this honour and opportunity. However, the City of Cape Town has repeatedly highlighted its concerns with SAFA about certain contractual obligations and the impact that the possible undefined costs could have on both Cape Town and on other municipalities, especially in light of substantial service delivery needs. We have made it clear from the outset that the bid must in no way violate the Municipal Finance Management Act nor any other relevant piece of legislation which the City is required to follow (see report).
The City of Cape Town accepted the South African Football Association's invitation to bid as a host city for the 2013 African Cup of Nations (AFCON) tournament. This was seen to coincide with the City's strategic position of being a competent and attractive tourism and events destination. However, the cost of hosting the AFCON games will have to be carefully weighed against other pressing socio-economic imperatives currently facing the city.
The City prepared and presented what is considered to be a technically and logistically sound bid to SAFA and the AFCON Local Organising Committee (LOC) on the 23 March 2012. Preceding and during the bid process, the City raised several items that required discussion prior to the Host City Agreement being signed
Critical issues that required further resolution included the following:
* The anticipated levels of expenditure required from the City to host a successful tournament, the final figures which could potentially exceed the R27 million the City had initially projected
* The time required to obtain the necessary legislative authority from the City administration to incur the necessary expenditure
* The projected revenue streams that would revert to the City were deemed to be limited
* The assignment of roles and responsibilities to hosting the tournament needed clarification to ensure that the city was not unnecessarily exposed to additional liabilities
* The inclusion of National Government guarantees in the hosting arrangements
The City of Cape Town has clearly articulated to SAFA and the AFCON LOC that resolution of the above matters will pave the way for a firm decision on whether the City will proceed with its bid to host the tournament or not.
The City has to date not withdrawn its initial bid offer and still awaits the outcomes of SAFA's deliberations and clarifications.
Please find below a letter issued by the City of Cape Town on 28 March 2012 to the CHIEF EXECUTIVE OFFICER - AFCON 2013 LOCAL ORGANISING COMMITTEE, Mr MVUZO MEBEBE outlining our concerns and request for engagement.
LETTER FROM THE EXECUTIVE MAYOR, ALDERMAN PATRICIA DE LILLE, TO THE CHIEF EXECUTIVE OFFICER - AFCON 2013 LOCAL ORGANISING COMMITTEE, Mr MVUZO MEBEBE.
28 MARCH 2011
Attention: Mr Mvuzo Mebebe
Chief Executive Officer
AFCON 2013 - Local Organising Committee
SAFA House
NASREC
PO Box 910
Johannesburg
2000
Dear Mr Mbebe
Cape Town's Participation in AFCON 2013
Your letters dated 9 March and 15 March 2012 refers.
The City of Cape Town wishes to record its interest and willingness to participate in the hosting process for AFCON 2013.
Your request for an official presentation to the bidding committee on the 23rd March poses some process challenges to the City.
These process challenges relate to restrictions imposed on the city by the Municipal Finance Management Act (MFMA).
Among other constraints is the limitation that the City requires a full sitting of council to approve the commitment of expenditure which currently exceeds the City Manager and my delegated authority.
The City wishes to participate but must comply with the provisions of the laws that govern its operation.
We believe that the timeline to confirm participation and commitment is being imposed on SAFA by the national government for cities to commit on their participation by 23 March.
The City of Cape Town will not be in a position to finalise its participation until such time as it has completed the necessary due processes as dictated to it by the processes contained in the delegations and governance arrangements as contained in the Systems Act.
The City wishes to emphasise its intention to participate but will not be in a position to sign a host city agreement within the times prescribed by SAFA in its letter of 15 March.
We respectfully request that the City of Cape Town be allowed to present its bid on 23rd March, with the proviso that it will confirm its acceptance of the host city agreement after due consideration.
Please advise if the conditions contained above meet with your expectations so that we may prepare accordingly.
Yours sincerely
Alderman Patricia de Lille
Executive Mayor
End
Statement issued by Councillor Grant Pascoe, Mayoral Committee Member for Tourism, Events and Marketing, City of Cape Town, April 10 2012
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