The City of Cape Town’s latest plan to ease the debt burden of the Cape Town Stadium is open for public comment.
The stadium has made a loss of R40 million each year since it was built for the 2010 World Cup.
Now the City wants to set up a “municipal entity” to manage the stadium. It will operate like a state-owned company with an independent board and the City as the sole shareholder.
Deputy mayor Ian Neilson, said: “The municipal entity will be tasked with appointing a specialised service provider whose primary function will be the commercialisation of the stadium to increase its use and financial viability. This will ultimately reduce financial dependence on the City’s fiscus.
“Our goal is to minimise the financial losses currently being experienced by the Cape Town Stadium and to maximise the potential income streams.”
According to the Municipal Finance Management Act, the financial implications for the City have to be assessed before the municipal entity can be set up.
The public can email comments and recommendations until Monday December 12 to Richard.Wootton@capetown.gov.za fax 086 202 8751 or write to the Office of the Chief Financial Officer, for attention: Richard Wootton, City ofCape Town, Private Bag X9181, Cape Town, 8000.
Relevant documents can be found at www.capetown.gov.za/haveyoursay or at the City’s libraries and sub-council offices.