Progress report on ODI Stadium and HM Pitje Stadium: stakeholder engagement; with Minister and Deputy Minister

Meeting report

The Chairperson said the purpose of the meeting was for the Portfolio Committee to receive reports on the progress of the re-development projects on the HM Pitje and Odi Stadiums. The Committee had performed oversight on the two stadiums and had noted issues with the funding of the two projects.

Minister’s opening remarks

MPs to wear T-shirts to popularise Netball World Cup

Mr Nathi Mthethwa, Minister of Sports, Arts and Culture, reminded the Committee and delegates that South Africa would be hosting the 2023 Netball World cup. It was important that the event be promoted well because the Department needed the legacy of the tournament. The tournament had not been hosted by an African country in the past 63 years. The legacy of the tournament would be the mobilising of girls to participate in the sport and working towards making netball the second most loved sport in the country.

The popularisation plan for the tournament had been dubbed "Netball Fridays," and every Friday, Members of Parliament would be expected to wear T-shirts that promoted the event. The T-shirts were available, and a letter had been forwarded to the Speaker of Parliament to inform her about the popularisation plan. The City of Cape Town would be hosting the event.
 
The Chairperson reminded the Minister to also write to the Chairperson of the National Council of Provinces (NCOP). The Portfolio Committee would remind the Chairpersons of all other Committees that their Members had to get the T-shirts to help in popularising this national event.

DSAC on funding of sports facilities

The Minister said the provision of sporting facilities at the HM Pitje and Odi Stadiums was a constitutional matter and was the responsibility of local government. The Department of Sports, Arts and Culture (DSAC) provided help in form of the Municipal Infrastructure Grant (MIG), which did not concern metros, but rather the local government districts. The local government structures were not taking sports, arts and culture seriously, to the extent that they would channel the funds for sports into other things. For that reason, the Department had decided to ring-fence the MIG so that districts were not able to use the fund for purposes other than what it was intended for.

The reality was that the metros had more money than most structures of government. The Urban Settlements Development Grant (USDG) was located in the Department of Human Settlements (DHS), but it was not ring-fenced and could be used for other purposes. The DSAC wanted to know what the grants such as the USDG were being used for, given that most metros, not only Tshwane, were not prioritising sports, arts and culture.

Mr Vusumuzi Mkhize, Director-General (DG), DSAC; said that the national sport and recreation plan (NSRP) recognised facilities as the foundation of the entire sport and recreation system, and therefore a lack of provision and maintenance of the facilities would compromise the country’s ability to meet its development, promotion and transformation objectives in sport.
For that reason, the government had established a "Building for Sport and Recreation Programme" (BSRP) as a funding model for the delivery of sport facilities through the former Department of Sport and Recreation. In 2004/05, the BSRP was integrated into the MIG, and now constituted 5% of that grant, and had to be used strictly for sport and recreation facilities by local municipalities. In the case of metros, MIG-Cities from the MIG was established, and over time it evolved to be USDG. Both the MIG and USDG were the main government funding mechanisms established to fund sport infrastructure.
Regardless of those funding mechanisms, provision and maintenance of sport facilities had not been prioritised, compromising both the availability and usability of the facilities in communities. In 2016/17, the Department had facilitated the ring-fencing of a 5% portion allocated for sport infrastructure in the MIG. Since the inception of the ring-fencing of the MIG in 2016/17 – 2021/22, the Department had been able to allocate the fund to 160 municipalities.
As a way forward, the DSAC would conduct consultations with the metropolitan municipalities to establish the extent of the use of the USDG to deliver sport facilities. It would develop a proposal to ring-fence portions of the USDG, learning from the MIG, and engage National Treasury on the matter.
(See presentation for further details)

City of Tshwane: Presentation on Odi Stadium

Mr Thabo Mokebe, Acting Group Head: Community and Social Development Services Department, City of Tshwane, introduced his delegation and handed over to Mr Felix Rajuili, Divisional Head: Sports, Recreation, Stadium and Facility Management, to lead the presentation.

Mr Rajuili was interrupted by the Chairperson while giving the background of the presentation. She reminded Mr Mokebe that the Committee expected a presentation on the progress made since the last meeting, not a repetition of the last presentation. She requested Mr Rajuili move on to a newer section of the presentation.

Mr Mokebe agreed that Mr Rajuili would move to slide 13 and continue from there.

Mr Rajuili said one of the funding options that had been explored for the re-development of Odi Stadium was the national government grant funding, where it was proposed that 15% of the USDG be ring-fenced for sporting infrastructure, but the efforts in that regard had not been successful. The City had engaged the Department of Human Settlements on the matter, and there were ongoing discussions. The other option was to use public-private partnership (PPP) funding, which was still being evaluated for viability. The last option had been City of Tshwane's internal funds -- the Odi Stadium project had been included in Tshwane’s ten-year wish list, which was still pending approval.

He said the main challenge the City faced was acquiring funding for the demolition of the existing structure and the re-development of a multi-purpose sports and recreation facility. The existing stadium had been declared unsafe and created a health and safety challenge. The proposed solutions were to explore funding applications to Treasury, PPP funding and Tshwane Internal Funding. The stadium had been previously fenced to keep it secure, but that was inadequate and the proposed solution was to involve the community in maintaining safety around the stadium.

Discussing the way forward, he said the current financial situation of the City of Tshwane created uncertain development opportunities towards the demolition and redevelopment of the facility. The current unsafe facility was a big challenge due to a lack of internal resources, and the option of external or private funds needed to be explored. An additional new development concept could be looked into, where a private investor could assist with funding to create a symbiotic commercial model that would benefit both the private sector and the City of Tshwane.

The Chairperson said the Committee had performed oversight and found that the communities were not happy, as the work that had to be done had not been initiated. The Committee wanted a progress report made, adding that it was evident that there was no progress yet.

Gauteng DSAC: Presentation on HM Pitje Stadium

Ms Nare Lebepe, Chief Quantity Surveyor, Department of Sports, Arts, Culture and Recreation, Gauteng, said the purpose of the presentation was to provide a status update in terms of the demolition of the HM Pitje Stadium, highlight the challenges and proposed solutions, and propose a way forward.

The Department had internal challenges with its supply chain management (SCM) and had not been able to issue a purchase order enabling payment to the professional service provider. That would attract potential standing time costs. There had been encroachments on the site, and the Department had engaged the City on how this could be dealt with, such as erecting a fence around the site.

The proposed solution to the SCM problem was to create a contract purchase order (PO) as soon as the Department’s SCM challenges were sorted out, to avoid any standing time costs. The Department proposed that the demolition process be continued while the municipality dealt with the encroachments by securing the site which had not been invaded yet.

Phase two of the project would be the re-development of the new envisaged 30 000-seater HM Pitje stadium, including a 15 000 standing square area, with multi-purpose sporting facilities. The re-development cost of the stadium was estimated to be R1.3 billion. The Department proposed the development of a precinct from the train station, via the Solomon Mahlangu Square, leading to the stadium.

The Department, together with the City of Tshwane, had not yet been granted funding for the development, but there were ongoing engagements with the stakeholders to come up with a funding model for the redevelopment.

Discussion

Ms R Adams (ANC) asked the Department, what guarantee it had that the MIG fund was being used for the intended purpose. The Committee was aware that MIG funds were being used to pay workers. Were there any agreements signed between the Department and municipalities for those payments? DSAC, the Department of Cooperative Governance and Traditional Affairs (COGTA) and the South African Local Government Association (SALGA), through the MIG, the District Development Model (DDM) and other private partnerships had to ensure that sports facilities were renovated, opened and maintained in working order. What had the Tshwane Municipality done so far in terms of involving the private sector in the re-building of the stadiums? Was there a relationship with the communities to ensure that conflict did not arise during the re-development process?
 
Mr M Zondi (ANC) agreed with the Minister that most municipalities were not serious about funding sporting facilities, hence the need to ring-fence the MIG. Tshwane had taken 10 years to receive the HM Pitje stadium because it had seemed like a liability to them. The Committee had been told that the demolition of the stadium would start in August 2021, but reportedly it had started only on 3 January this year. What were the challenges that had led to the delay? The demolition timeline for the stadium was projected to be one year, whilst that of the Odi Stadium was two years – what was the reason for the difference in the demolition time-frames for the two stadiums? Which of the stadiums would be re-built first?

Mr J Mamabolo (ANC) asked if the Tshwane Municipality was planning to refurbish the old stadium design, or if there were plans to come up with a completely new design.

Mr D Joseph (DA) said that leading to the 2010 FIFA World Cup, the national government had led the drive to get the HM Pitje Stadium, and could not now leave the responsibility to local government for its re-development. Visionary leadership was needed to establish the time-frames detailing when the re-development projects would be finished. Could the Department provide the Committee with those time-frames? What could the government and the community do together to ensure the safekeeping of the facilities to prevent stealing and vandalism?

The Chairperson requested the Committee give her a mandate so that she could write to the Minister of COGTA and the Provincial Government to inform them that the Committee had performed oversight on the two stadiums and was not happy with the progress thereon. The stadiums had been ‘White Elephants’ and were vandalised to a large extent as there was no security guarding them.

Mr Peter Lesola, Chairperson: Athletics Tshwane West, said Athletics Tshwane West had taken the initiative to guard and provide safety around the Odi stadium, but the City of Tshwane had failed to recognise them. Why was the City not recognising them?

Mr Kagiso Rahube, Deputy Chairperson: Athletics Tshwane West, said the City had not informed the community of Mabopane about the stadium demolition. The community had just seen the process starting. Why was the City not engaging the community in the plans that would affect them? Athletics Tshwane West was involved in keeping the area outside the stadium clean by cutting the grass so that snakes would not dwell there -- what was the City’s plan concerning that kind of cleaning? There was a need for the City’s 5% grant towards sport development to be increased, and the influence of the Minister could be helpful in that regard.

Mr Joel [surname unconfirmed], Chairperson: United Mamelodi, said the delay in the development of sporting facilities was why Mamelodi would be producing criminals. The lack of sporting facilities in Mamelodi had caused most talented youth to opt for crime. The delays were affecting Mamelodi badly. Before COVID-19, the community had attended a meeting on the demolition of HM Pitje stadium and had been told that there was a R50 million budget for the demolition, but the demolition had not happened due to COVID. At the last meeting on the demolition, the community had been told that the demolition would start in August 2021, but that had not been the case.

Responses

Minister Mthethwa welcomed the sentiments from the community leaders, emphasising that participation in sports aided largely in the social cohesion of communities.

Answering Mr Joseph, he said national government had not shifted any funding responsibilities, because the sporting facilities in question belonged to the City. The Tshwane Metro had a budget of R43 billion per annum and was not being questioned on its responsibilities towards its stadiums, whilst the Department of Sports, Arts and Culture, with an annual budget of R900 million to share amongst nine provinces, was being questioned. The City of Tshwane, together with the Department of Human Settlements, needed to ensure that the USDG served its purpose. Metros in general had much deeper pockets, and could easily increase the 5% budget allocation for sports.

Mr Mkhize said the integrated development plan (IDP) was a planning framework for municipalities, and it included consultations with the communities. The Department did not understand the reasons for municipalities to overlook the prioritisation of sports. The community leaders had made a very passionate plea that sports must be taken seriously by the metros to create a nation of winners. The Department would consider visiting the stadiums to obtain first-hand experience of what was happening on the ground.

Ms Nocawe Mafu, Deputy Minister of Sports Arts and Culture, suggested that the Portfolio Committee on Sports, Arts and Culture interface with the Human Settlements Portfolio Committee to have a joint discussion on the ring-fencing of the USDG, or part thereof, for sporting facilities. The USDG was aimed particularly at developing infrastructure. and each metro received at least R5 billion annually under the grant.

Ms Sumayya Khan, Deputy Director-General (DDG): Recreation and Sports Development, DSAC, answering Mr Joseph, said the stadiums that had been built for the 2010 FIFA World Cup still belonged to the cities in which they were built, despite the national government drive that had led to their realisation. Some of the stadia were viable business models to this day, with Moses Mabhida stadium being a prime example.

She rejected the insinuation that the Department had no visionary leadership, saying it had shown visionary leadership by ensuring that the MIG fund was ring-fenced. Through this visionary leadership, the 160 municipalities had benefited from the grant, and it was through visionary leadership that more municipalities were going to benefit from the grant. The Department was actively involved in monitoring the facilities and in supporting municipalities, even though that had not been its core constitutional mandate.  

Mr Mokebe said the City of Tshwane Community and Social Development Services Department would really appreciate the ring-fencing of the USDG, as that would be a concrete intervention that would assist it.

Answering Mr Mamabolo on the design of the ODI Stadium, he said it had been proposed that the facility should be converted into a basic multi-purpose sporting infrastructure for locals as opposed to re-developing it back into a stadium. The reasoning behind the proposal was that there was another stadium within a ten-kilometer radius called "Giant Stadium," which would complement the need for a stadium in the area.

Answering Mr Zondi on the challenges that had led to the demolition delay at the HM Pitje Stadium, he said the City had a backlog and had to provide services to other areas that required the same infrastructure. In the R41 billion budget, R36.9 billion was allocated to operations, and only R4.1 billion was allocated to infrastructure. Within the current financial year, only 0.01% of the R4.1 billion budget had been allocated to sports and recreation.

Answering Mr Joseph and the DDG on the city’s responsibility towards sporting facilities, he agreed that the sporting facilities under discussion were the responsibility of the city. The HM Pitje Stadium had been handed over to the province in an operational state. After the 2010 FIFA World Cup, the City of Tshwane had refused to take responsibility for the stadium because it had structural defects, so it was now being demolished.

He noted the comments made by Athletics Tshwane West and said it was important for the city to always engage with its stakeholders. He committed to maintaining contact with the athletics club via the city’s divisional head, and to ensure that the necessary support was provided in that regard.

Speaking on the allocation of budgets, he agreed that sport was not being prioritised institutionally, and Ms Peggy de Bruin, Member of Mayoral Committee (MMC): City of Tshwane Community and Social Development Services, would be able to address that.

Ms De Bruin was about to make her input when the Chairperson asked her to switch on the video and show her face first, and was warned to look presentable. Ms De Bruin responded that there was a problem with her video, and requested being allowed to continue without showing her face. The Chairperson did not allow that, and the MMC did not make her contribution.

Mr Rajuili, answering on the recognition of Athletics Tshwane West, said the City worked very closely with the Tshwane Sports Council, as well as Athletics Gauteng North, and it was assumed that the club was an affiliate thereto. The City was looking to engage them further, and to create a "follow-up participation process" around the Odi Stadium. The issue of cleaning around the stadium had been raised, and the department dealing with parks was going to attend to it.

Mr T Mhlongo (DA) proposed that both the Member of the Executive Council (MEC) and the MMC be invited when the Committee delivered its report. The Committee had been told that the demolition of HM Pitje Stadium would start in October, but now the City had stated that the demolition had started in January, whilst the community members had reported that the work had not started. Who was fooling who? He agreed with the Minister that all the municipalities had to be called to account for the USDG and how it was being used. There was a need for intergovernmental relationships that would always be working, not relationships that worked only when it suited the local government. He asked Tshwane how it could be developing stadiums in the town and forgetting stadiums in the townships. He asked the MMC if there was any demolition happening at HM Pitje Stadium. He proposed that the Committee should visit the stadiums and see first-hand what was happening there. The presentation that had been given to the Committee clearly indicated that there was enough budget, but there was seemingly no progress on the projects.

The Chairperson said the reality was that they were still where they were when they called this meeting. She asked the Committee to give her a mandate to call a joint meeting between the Select Committee and the Portfolio Committee on Human Settlements to discuss the issue of grants. There had been a history of grants, including the MIG, being re-directed to other areas. The former Committee had fought about the matter, but it would seem that this Committee was also facing the same issue.

She said it was important for the inter-governmental relationships to be strengthened to ensure that funds were not re-directed without accounting. It was the responsibility of the Minister, the Deputy Minister, the Portfolio Committee and the Department as a whole, to represent the communities on the ground. Rural areas needed infrastructure as much as the towns. The case simply could not be that areas that were drug-ridden, and areas where the sporting infrastructure could benefit the community a great deal, were lacking in infrastructure.

The Minister assured the Committee that the DSAC was committed to assisting not only Tshwane but all the metros and municipalities in engaging with Human Settlements, to ensure that there was an agreement between the metros and the Ministry to ensure that the allocated funds got where they needed to go.

The meeting was adjourned.