“Although the Moses Mabhida Stadium is still operating at a loss, it is currently generating income in excess of R70m per annum.”
|||Durban - The eThekwini Municipality is to take over the management of Durban’s Moses Mabhida Stadium, sparking criticism that the entity could become an even bigger financial liability for ratepayers.
The major concern raised by opposition parties last week was that the city did not have the expertise to manage and operate the facility.
The city has said it will not renew the contract of caretaker operator, Municipal Management Services, which has managed the stadium since 2009. The contract ends next month.
From June 2011 to June last year, Municipal Management Services incurred an operating loss of R11.5 million against an expected projected loss of R30m.
The city will, in the short term, manage and operate the stadium internally under the guidance of sustainable development and city enterprises manager, Naledi Moyo, and deputy health and social services manager, Musa Gumede.
“Although the Moses Mabhida Stadium is still operating at a loss, similar to all other World Cup stadiums in the country, the stadium is currently generating income in excess of R70m per annum,” said Moyo.
No major changes to the operational structures were envisaged.
Moyo said the stadium team was constantly pursuing new and exciting commercial opportunities which would generate additional income in future and through these initiatives the stadium would achieve “breakeven status” within the next few years.
“The city team which has co-managed and provided oversight and strategic direction at the stadium from inception will continue to be involved going forward,” she said.
Existing staff members at the stadium will now be employed by the city on a contractual basis.
Minority Front councillor Patrick Pillay said his party would prefer the stadium be treated as a separate entity so that it could reflect its actual expenditure and income.
“If the city is running the stadium in-house there needs to be vigorous marketing strategies in place to ensure a constant revenue stream,” he said.
Pillay added his biggest concern was the caretaker operators did not have the necessary skills to run such facilities.
“I’m not convinced our city can match the strategic skills and expertise of these management companies. We will have to wait and see,” he said.
DA caucus leader Zwakele Mncwango said his party was also against municipal entities being run by the city saying such facilities should be managed by professionals.
“The city does not have the capacity to run entities such as uShaka Marine World, the International Convention Centre and the stadium.
“Officials should focus on service delivery,” he said.
gugu.mbonambi@inl.co.za
The Mercury