MyPE

Community Business Directory, Event Listings, News and Views from Gqeberha, Nelson Mandela Bay

Time to give the Ratepayers some respect for their R78 862 263.79 contribution

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A recent look at the official Municipal Net Operating Deficit figures for the Nelson Mandela Bay Stadium sparked this line of thought.

The annual Net Operating Deficit for the stadium has ballooned from R17 191 830.73 in 2010/11 to R20 779 883.58 in 2011/12 and then to a whopping R40 890 549.48 in the 2012/13 financial year.

First the good news – the Neson Mandela Bay Stadium is apparently the ‘best performing’ out of all of the stadiums that were purpose built for the 2010 World Cup.

BUT, let’s look at that ‘fact’ another way – it is something like going to the dentist for a check up and being given the choice between having one, two or three healthy teeth removed at your own expense and then being charged for a crown and ongoing maintenance for the rest of your life.

Before you ask what sane person would voluntarily elect to do that stop and think that that is exactly the situation we find ourself in with the stadium!

There are a number of strange figures in the Income and Expenditure account though:

  • How can the electricity expense be R6.5 Million odd in 2011/12 as compared to R4.9 Million odd in 2012/13 (the busiest year for the stadium).
  • The water charges also show NO consistency – R705 086.87 in 2010/11, R800 934.92 in 2011/12 only to plummet to R122 037.57 in 2012/13
  • So too for the sewerage charges which plummet from R864374.13 to R387 234.08 in 2012/13.
  • Direct running and event costs exceed income by an average of 73.33%
  • The Gross Operating Deficit doubles to R22 680.671.00 in 2012/13 and seems mainly attributable to a R11 977 486.40 line item labelled ‘Turnover Incentive’

All very confusing.

The bottom line is that since 2010 the ratepayers of Port Elizabeth, Uitenhage and Despatch have contributed R78 862 263.79 in operating costs to the Nelson Mandela Bay Stadium.

I, for one, know that I have NEVER received a personal invite to tour the stadium or even a thank you note for my contribution.

I, for one, know that members of the majority political party have been to many events at the stadium free of charge.

Kinda stinks, doesn’t it?

Related: Stadium Economic Impact Study Just Spin | Outstanding Debts will cripple Service Delivery in Nelson Mandela Bay.

NMB Stadium Financials
NMB Stadium Financials: 2010 to 2013
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Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.

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Comments

  1. An emailed comment:

    That is absolutely disgusting. Who is benefiting from this rip off? The stadium is beautiful – but not so beautiful that it is acceptable to be a drain on our metro’s finances. In the real world of commerce this would never be acceptable.

    Turn it into a shopping complex or do something constructive with it. We want answers. Our mayor should be held accountable. Imagine what our metro could do with all that money instead of throwing it into a never ending black hole. Houses, sewerage, infrastructure etc etc. Instead we are slowly sinking into a pit of dirt and ruin. We are becoming the lowest common denominator instead of trying to be a first class tourist destination. PE is a dirty, stinky, noisy little dorp and fast becoming even worse.