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Poor planning behind 2010 funding crisis

OFFSIDE: The 2010 host cities cannot be expected to fund the escalation in the costs of building and repairing stadiums out of ordinary ratepayers' money. Pic. Jeremy Glyn. 10/10/2006. © ST
OFFSIDE: The 2010 host cities cannot be expected to fund the escalation in the costs of building and repairing stadiums out of ordinary ratepayers' money. Pic. Jeremy Glyn. 10/10/2006. © ST

Insufficient government planning is behind the crisis in funds for the building of stadiums for the 2010 Soccer World Cup, the DA said yesterday.

"The insufficient planning is clear in the 2004 estimate of R1,6billion for the upgrading and construction of 13 and not 10 stadiums," said DA spokes-man James Masango.

The estimate was R2,5billion in 2005.

"Now, the R12billion promised by the national treasury is R2,5billion less than the cities need to build or upgrade stadiums."

Masango's comments come a day after host cities complained about funding shortfalls of millions of rands.

Estimates had swelled because of inflation, exchange rate fluctuations, as well as rising input costs linked to shortages of skilled manpower and building materials, officials told a parliamentary sports committee on Tuesday.

"There is a big funding gap," Cape Town's 2010 administrator Mike Marsden told parliamentarians.

Cape Town faced a shortfall of about R1,258billion in secured funding.

The DA was enthusiastic about 2010, but cities could not be expected to fund this escalation out of ordinary ratepayers' money, Masango said.

"If cities are forced to spend huge excess amounts they run the risk of going insolvent. The government must come to the party, because clearly funds are not a problem for it." - Sapa

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