Opposition parties in the City of Cape Town council say the Democratic Alliance (DA) party must account for the R28 million loss the city incurred following the undesirable outcome of the Cape Town Cup the previous years.
According to reports, the opposing parties during a finance portfolio gathering meant to evaluate the city’s financial status said the apology tendered by mayor Patricia de Lille isn’t adequate.
As such, they insisted to be enlightened on how the city will make up for the R28 million loss allegedly incurred due to the poor sale of tickets for the Cape Town Cup in July last year.
You’ll recall that it was exposed in January that the city spent over R30 million to host the Cape Town Cup event that saw Ajax Cape Town and SuperSport United play against Portuguese club Sporting Lisbon and English Premiership side Crystal Palace.
The event however flopped dismally as only R2 million was earned from the 22 000 tickets sold. Thereafter Anton Groenewald, the city council’s executive director for tourism, events and marketing quitted his job.
It was gathered that ANC’s Peter Gabriel pointed-out that the financial status reports the committee was deliberating on left out the R28m loss and hence, demanded that the loss must be accounted for by the DA.
“How does the city manage these situations? When you have a loss, it must be reflected somewhere…The DA must be held accountable for having lost the money,” Gabriel insisted.
Similarly, Yagyah Adams of the Cape Muslim Congress remarked that those responsible for the loss made “stupid decisions” which he and Freedom Front Plus’s André Fourie warned against when the city was about to host the Cape Town Cup event.
Commenting, Johan Steyl the city’s director of budgets admitted that over-expenditure have been consistently reported in the City’s budget documents. But then, opined that the city will have to work towards compensating the loss by generating another revenue source.