Chippa United have been drawn into the case of fraud, corruption and theft charges brought last Friday against the Nelson Mandela Bay Municipality by the Nelson Mandela Bay Ratepayers Association.
The Premier Soccer League club allegedly illegally benefitted from a R750000 loan made out to them, through Nelson Mandela Bay Stadium managers Access Management, to help them stage their league game against Kaizer Chiefs in August last year.
According to the Municipal Finance Management Act, municipalities are prohibited from making out loans to members of the public, councillors or municipal officials.
In their 500-page affidavit handed to police last Friday - and believed to have also been forwarded to the Hawks - the ratepayers association alleges that Chippa's match-day income for the August 9 game amounted to R312979, which was significantly less that the money borrowed.
Access Management allegedly sent an invoice to the city, seen by Sowetan, on behalf of the club for a R750000 "ticket income advance", on July 29 last year, on the premise that the money would be paid back after the game was staged.
The so-called advance was on top of the R36-million, over three years, Chippa received from the Bay and the Eastern Cape Provincial Government to host their home matches in Port Elizabeth.
Acting city manager Johann Mettler confirmed the advance payment, but said the money was not a loan but a transfer according to the agreement the city held with the club to play their games there.
"I can confirm that there was an advance payment towards Chippa United for that game against Kaizer Chiefs," said Mettler.
"[But] no, it is not a loan but [part of] an agreement. They are entitled to certain payments in terms of that agreement."
Chippa United owner Siviwe "Chippa" Mpengesi denied that the club ever asked the metro for a loan and deflected questions to Access Management.
"I never asked for a loan from the municipality," he said.
Access Management managing director Rian Oberholzer said: "It was an [advance] on the gate [takings]. But please speak to the city because I didn't take the decision."
Chippa United drawn into fraud, corruption case
Chippa United have been drawn into the case of fraud, corruption and theft charges brought last Friday against the Nelson Mandela Bay Municipality by the Nelson Mandela Bay Ratepayers Association.
The Premier Soccer League club allegedly illegally benefitted from a R750000 loan made out to them, through Nelson Mandela Bay Stadium managers Access Management, to help them stage their league game against Kaizer Chiefs in August last year.
According to the Municipal Finance Management Act, municipalities are prohibited from making out loans to members of the public, councillors or municipal officials.
In their 500-page affidavit handed to police last Friday - and believed to have also been forwarded to the Hawks - the ratepayers association alleges that Chippa's match-day income for the August 9 game amounted to R312979, which was significantly less that the money borrowed.
Access Management allegedly sent an invoice to the city, seen by Sowetan, on behalf of the club for a R750000 "ticket income advance", on July 29 last year, on the premise that the money would be paid back after the game was staged.
The so-called advance was on top of the R36-million, over three years, Chippa received from the Bay and the Eastern Cape Provincial Government to host their home matches in Port Elizabeth.
Acting city manager Johann Mettler confirmed the advance payment, but said the money was not a loan but a transfer according to the agreement the city held with the club to play their games there.
"I can confirm that there was an advance payment towards Chippa United for that game against Kaizer Chiefs," said Mettler.
"[But] no, it is not a loan but [part of] an agreement. They are entitled to certain payments in terms of that agreement."
Chippa United owner Siviwe "Chippa" Mpengesi denied that the club ever asked the metro for a loan and deflected questions to Access Management.
"I never asked for a loan from the municipality," he said.
Access Management managing director Rian Oberholzer said: "It was an [advance] on the gate [takings]. But please speak to the city because I didn't take the decision."
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