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?
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