Concerns raised over R1. 8 million payment for incomplete stadium project in Durban
Image: File
The management of the eThekwini municipality came under scrutiny for an allocation of R1.8 million for the rehabilitation of the Rotary Stadium in KwaMashu despite non-performance issues by the service provider.
Councillors approved the urgent reprioritisation of a budget to cater for the stadium rehabilitation. According to the municipality, the R1.8 million is sourced from various projects including R585,000 from a library project.
In a report before eThekwini council on Monday, the Parks Recreation and Culture (PRC) Unit stated that the mandate is to build new and to rehabilitate existing facilities.
In 2024 and 2025, the PRC unit was allocated R185 million for capital projects to build new facilities and develop the existing facilities within the city. There were no figures provided on how much was already spent on the stadium. The municipality stated that the cancellation was due to circumstances beyond their control and that the project was halted due to non-performance issues by the service provider.
The municipality stated that the final account for closing this project has been concluded and the invoice has been received for the payment. The municipality stated that the project line item currently has a budget shortfall, and the unit has identified savings within the unit's capital budget to be reprioritised for the payment of the final account for the project.
Following an in-depth consideration of the item, the DA and Truly Alliance (TA) expressed reservations regarding the approval of this item and proposed that an oversight visit be conducted prior to the approval, as they were of the view that they needed to have all information regarding the work done and the work still outstanding.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
This submission therefore seeks authority to pay for part of work already undertaken under this project, with attention drawn to the urgency of the matter in view of threats being levelled against the municipal officials as a result of non-payment.
Daniel Mea, DA Councillor, said the project had come before council again, this time not for progress, but for payment to a contractor who failed to complete the job. Mea said the DA will not endorse rewarding failure and because the facts placed before the council remain deeply concerning and unresolved.
'We were told that the contractor ran out of money and could not complete the contract. This raises critical red flags. Was there a proper project cash flow monitoring and did this not have a fixed scope or fixed budget contract? How did the contractor reach a point where the budget was exhausted but the work remained incomplete? And perhaps most alarmingly despite this failure the municipality now proposes to pay him more," Mea said.
Mea said this sets a dangerous precedent and 'one cannot and must not create a culture where underperformance is rewarded and failure is followed by financial rescue'.
'To date, council has not been provided with a comprehensive audit of the actual work delivered, nor the timeline of expenditure. If the council continues to rubber stamp such proposals then it is complicit in the erosion of accountability. Oversight committees must not be passive observers,' Mea said.
Councillor Musa Khubeka, of ActionSA, expressed serious reservations, stating that one could not approve millions of rands when the report showed that other parties' views, concerns and suggestions of doing oversight were not addressed during a committee meeting.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
4 days ago
- IOL News
Nedbank sells R1. 8bn Ecobank stake to Bosquet Investments
Nedbank announced that it has reached an agreement to sell its 21.2% shareholding in Ecobank Transnational Incorporated (ETI) to Bosquet Investments for a purchase consideration of $100 million (R1.8 billion). Bosquet Investments is the private investment vehicle of Alain Nkontchou, the managing partner and co-founder of Enko Capital Management. This follows the bank's strategic review of the group's financial investment ETI, which as from June 30, 2025, was classified as non-current asset held for sale in terms of IFRS 5. Nedbank Group CEO Jason Quinn said the bank was pleased to have reached this milestone following the board's approval to dispose of the asset. He said, 'Nedbank's decision to sell its ETI investment follows a detailed evaluation of the strategic alignment, financial performance, and long-term value proposition of the investment and is consistent with Nedbank's ongoing efforts to optimise its capital allocation and focus on core growth areas. This marks the conclusion of a significant chapter in Nedbank's journey with ETI spanning many years. "We wish to express our gratitude for the professionalism and integrity with which the board of directors of ETI has consistently conducted its affairs, and for the constructive engagement that has underpinned our relationship. The ETI board's stewardship has played a pivotal role in navigating ETI through complex environments and in advancing its pan-African mandate.' Quinn said the sale represents a reset of Nedbank's strategy on the rest of the African continent with a clear focus on the SADC and East Africa regions in businesses Nedbank owns and controls, and areas where it can play to our strengths. The proposed disposal is subject to the receipt of the requisite regulatory approvals in the relevant jurisdictions only. There are no other conditions precedent. Bosquet Investments has provided appropriate security to evidence the funding for the purchase consideration. It is currently expected that the proposed disposal will be implemented in the fourth quarter of 2025.
IOL News
5 days ago
- IOL News
Nedbank sells 21% stake in Ecobank for R1. 8 billion
Nedbank has announced that it has "reached an agreement to sell its 21.2% shareholding in Ecobank Transnational Incorporated (ETI) to Bosquet Investments Limited Image: Karen Sandison / Independent Newspapers Nedbank has announced that it has "reached an agreement to sell its 21.2% shareholding in Ecobank Transnational Incorporated (ETI) to Bosquet Investments Limited (Bosquet Investments) for a purchase consideration of US$100 million (R1.8 billion)" . Enko Capital is an African-focused asset management group established in 2008. The group manages alternative and traditional investment funds across Africa and has assets under management of Bosquet Investments is the private investment vehicle of Alain Nkontchou, the Managing Partner and co-founder of Enko Capital Management LLP ('Enko Capital'). The bank confirmed the news in a statement to the media on Friday morning, saying the decision "follows the bank's strategic review of the group's financial investment ETI, which as from 30 June 2025, was classified as a non-current asset held for sale in terms of IFRS 5". Nedbank Group Chief Executive Jason Quinn said, "the bank was pleased to have reached this milestone following the board's approval to dispose of the asset". 'Nedbank's decision to sell its ETI investment follows a detailed evaluation of the strategic alignment, financial performance, and long-term value proposition of the investment and is consistent with Nedbank's ongoing efforts to optimise its capital allocation and focus on core growth areas. "This marks the conclusion of a significant chapter in Nedbank's journey with ETI spanning many years" Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Quinn added that Nedbank remains committed to its African growth strategy but will now concentrate its efforts in regions where it has operational control. The proposed disposal is subject only to the receipt of the requisite regulatory approvals in the relevant jurisdictions, with no other conditions precedent. The transaction is expected to be completed in the fourth quarter of 2025. 'The sale represents a reset of Nedbank's strategy on the rest of the African continent with a clear focus on the SADC and East Africa regions in businesses Nedbank Group owns and controls, and areas where we can play to our strengths.' IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
10-08-2025
- IOL News
Gauteng records R21 billion in domestic spending as G20 Summit approaches
Gauteng's MEC for Economic Development, Lebogang Maile, announced that the region has welcomed over 6.4 million visitors for the current financial year. Image: Gauteng Tourism Authority X account Ahead of the upcoming G20 Summit, Gauteng MEC for economic development, Lebogang Maile, has revealed that the province has recorded more than 6.4 million visitors and generated more than R21 billion in domestic spending in the current financial year. Maile who briefed the media on Sunday, indicated that while the province remains the net exporter of domestic travel due to the high number of people with a sizable disposal income per capita, it managed to achieve 6.4 million domestic trips while generating a total of R21 billion in domestic spending, underscoring the pride and participation in the provincial tourism economy and offerings. This comes as South Africa's economic hub is anticipating a big buzz with economic activity as it prepares to host the annual G20 Leaders' Summit, which will take place from 18 to 19 November 2025. The summit will bring together leaders from 19 member countries and representatives from the African Union and the European Union. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Maile revealed that more than R1.8 billion was realised as direct contribution of hosted quality signature events in the province, and a total of R19 million in revenue was generated for SMMEs, underscoring the transformative nature of tourism and quality events hosting and leveraging in the province. As a result of this strong performance, Maile said Gauteng has reinforced its status as the most visited province in South Africa and the continent's most globally connected tourism gateway. "Gauteng has without a doubt, reinforced its status as the most visited province in South Africa. In 2024/25, Gauteng recorded over 3.8 million international arrivals, a significant increase from the previous year's 2.6 million. As a result of this increase, the foreign direct spend or international tourism revenue contribution also rose to R41 Billion against our target of R29 billion," he said.
