MEC to investigate council funding of Chippa United

OCTOBER 16, 2014

Cooperative Governance and Traditional Affairs Minister Pravin Gordhan says the matter of the relocation of Chippa United to Nelson Mandela Bay has been referred to Eastern Cape Cooperative Governance and Traditional Affairs MEC Fikile Xasa.

Replying to a question in the National Council of Provinces, the Minister said the MEC would “investigate further about the contribution” of the Council.

He added that the details of the agreement and all supporting documents still had to be “evaluated” by the MEC.

Gordhan said he had been informed by the metro that the total relocation cost of Chippa United from Cape Town was R12 million a year for three years.

He said the decision to secure a PSL team for the Nelson Mandela Bay Stadium dated back to 2012, adding that a Special Mayoral Committee meeting on June 25 this year had resolved to sup-port the relocation.

“The metro is of the view that the economic and social benefits of relocating the team outweigh the annual investment the city will pay over the next three years.”

With regard to the decision by the Msunduzi Local Municipality to pay Maritzburg United R36 million not to relocate to Nelson Mandela Bay, the Minister said he had been informed by the KwaZulu-Natal Provincial Government that there had been “no formal complaint about corruption, fraud and maladministration regarding the agreement between club and municipality”.

He said the council “having considered the social and economic impact of the relocation of Maritzburg United decided to support the team in order to stop them relocating,” adding that the full council had taken a decision to support the team “by also creating facilities to promote sport within the municipality”.

Gordhan said the agreement between the team and council and other relevant supporting documentation had also been referred to the MEC for Cooperative Governance and Traditional Affairs in KwaZulu-Natal Nomusa Dube-Ncube to be “evaluated”. - metrominutes