Ratepayers in the Nelson Mandela Bay Metro are taking the council to court. They are challenging the contract between the metro and the operators of the stadium, Access Management.
The Ratepayers have filed papers in the high court saying the money paid to the operator is being used illegally.
The Ratepayers association believe the money paid by the metro to the stadium operators is being used to prop up the cash strapped Eastern Province rugby union.
Ratepayers association chairperson, Kobus Gerber says, “Illegal monies is getting channelled through Access Management to EP [Eastern Province] Rugby. We had to put a stop to it – what actually been happening, they are loaning via Access to EP Kings. We had no option [but] to go to high court and get irregular re-appointment of Access Management set aside.”
Metro officials are aware of the court application but have not made a decision on their next move. The council has not raised any issues about how the stadium operator is using the money paid to it.
Nelson Mandela Bay Metro Councillor, Rory Riordan says, “Access Management have been lending the Kings money against future gates receipts, in order to help the Kings to be cash-flush at the beginning of the season. They are expecting good gate receipts this year with Super 15 being back with us here – and this is done quite commonly across stadium around the country.”
The respondents have 15 days to file their notices of intention to oppose. The Eastern Province Rugby Union (EPRU) also cancelled its AGM that was supposed to take place on Saturday at short notice.