The Local Organising Committee gave an update to the Committee on the preparations for the 2010 World Cup and the 2009 Confederations Cup. The four main reasons for
Members had great confidence in the Local Organising Committee but much less so in the South African Football Association. There was concern over the use of state funds to upgrade privately owned stadiums, and there was concern over the viability of some of these stadiums after the World Cup. Questions were raised around the salaries and operating expenses, security issues, transport preparations and legacy plans. It was agreed that outstanding matters would be dealt with at a further briefing.
Chairperson’s opening remarks
The Chairperson noted that this briefing would address the current state of preparations by the Local Organising Committee for the 2010 World Cup and 2009 Confederations Cup. The Committee had toured the country in its oversight role and had found that a lot of good work was being done in the host cities (HOC). The Committee wanted to know more about legacy programmes. General Holomisa was always asking about the tenders for stadiums, and what contribution the builders were making. They were not compelled to give anything extra to the community, but he felt that they should strongly consider undertaking a project such as building a cricket field in the townships.
Current state of preparations for the 2010 World Cup and 2009 Confederations Cup: Local Organising Committee (LOC) Briefing
Mr Danny Jordaan, Chief Executive Officer, 2010 Local Organising Committee, apologised for the absence of the Chairman of the Board who was having a meeting with the Premier Soccer League (PSL). He introduced the members of the delegation. Mr Linda Mti was the Chief Security Officer, and was in charge of all aspects pertaining to security. Ms Tumi Dlamini, a lawyer by profession, was the Head of the 2010 Legacy Programme. Ms Moira Tlhagale, a quantity surveyor by profession, was the leader of the LOC Technical Team. Mr Tim Modise was a well known broadcaster and political commentator who was serving as the LOC’s Chief Officer for Communication and Marketing. Ms Onke Mjo was in charge of the volunteer programme for the LOC.
Mr Jordaan admitted that there had been some problems with the various projects. He thanked the Committee for its interest and support. The World Cup project had started as early as 1994. On 16 September of that year the South African Football Association (SAFA) had written to FIFA in regard to hosting the 2006 World Cup. The successful presentation of the Rugby World Cup in 2005 and the African Cup of Nations (AFCON) in 1996 demonstrated the country’s ability to host major events, particularly since the 1996 AFCON was scheduled for Kenya but had been moved to South Africa just a year and a half before the event.
He said that there were four main reasons for bidding for the World Cup. The first was the legacy that the event would leave. This would be primarily in the improvement of infrastructure. There had already been a significant improvement in this area since 1990. OR Tambo International was now a world class airport, and other airports had also been upgraded. An amount of R13.6 billion had been allocated for the road network. Hotels and other related industries, such as the Waterfront development in
He said that
The second issue was tourism growth. Teams qualifying for the tournament would be coming from countries not generally targeted by
He said that many people still felt that
Mr Jordaan said that the third reason for bidding for the World Cup was economic growth. The football sector could not claim the credit for this. There had been a growth in investment. There were global challenges. Major foreign investment was being made in the banking and Integrated Communications and Technology (ICT) sectors. The LOC had set a target of procuring 30% of the required goods and services from small, medium and micro enterprises (SMME). A financial report had been submitted which showed that the LOC procurement from SMMEs stood at 39%. They were encouraging the HOCs to follow a similar programme.
The fourth reason was the provision of a football legacy. He wanted to see an improvement in the standard of football facilities on the continent. SAFA House had been built with a contribution of US $10 million from FIFA. This was the best football headquarters building in the world, using leading technology.
Mr Jordaan said that there was a programme to put down artificial pitches. This had started in Pietermaritzburg, and would go to many other parts of the country. The focus was on the rural areas, and 60% of the artificial pitches would be laid in those areas. FIFA had a programme of 20 Centres for 2010. This would provide five artificial surfaces in
Mr Jordaan said that a training programme would be introduced to enhance administrative skills. Volunteers would be developed and taught various skills. Nation branding and nation building were also issues. He was not sure how sport could do this. A study in
Ms Tlhagale said that there would be ten competition venues during the World Cup. Five of these had also been identified for the Confederations Cup. Only one of these, namely the Nelson Mandela Stadium in
The Chairperson said that while no stadiums had been completed, there should be an opportunity for the public to tour the building sites. This would help with bolstering expectations and generating interest. He asked if anything was happening in this regard.
Mr Jordaan replied that this was a valid point. He asked how many Members had toured the Green Point Stadium in
Ms Tlhagale continued that Programme 5 was the official status at the Nelson Mandela Stadium. The original agreed date of completion for this stadium was December 2008. After delays a dynamic programme of construction had ensued, and the completion date was now 13 March 2009. An agreement had been reached with FIFA and the LOC so that the hand-over date could be delayed until the end of March 2009. The contractors were three weeks behind schedule on the roof fabrication. The wind in
She said that Ellis Park Stadium had an existing capacity of 62 500. This would be the venue for the Final of the Confederations Cup. The upgrade was progressing well. The original completion date of September 2008 had been delayed to October, due to ground conditions and unseasonable rain. Plans were on track to have the stadium ready to be handed over to FIFA by the deadline of December 2008. This project was within budget.
Ms Tlhagale said that Loftus Versveld Stadium would accommodate 50 000 spectators. Matters were not progressing well on this project. A change in the consultants had caused a delay. Of the six contracts, four had already been awarded. She believed that the project would be completed by the end of December 2008 although this might be delayed until January. There was some risk of budget overrun.
She said that the Royal Bafokeng Stadium currently seated 39 000 spectators, but another six thousand seats were being added. The construction programme was tight, with progress standing at 25% against a planned 43% at this stage. A challenge was the structural redesign necessary for the existing stadium. The expected completion date was December 2008. There was also a challenge with a budget overrun.
Ms Tlhagale said that the stadium in
She said that the budgets would be updated. The LOC had met with the National Treasury, the Department of Sport and Recreation (SRSA), the Department of Public Works (DPW) and the HOCs. They would have a meeting with the Mbombela authorities the next day. The report would be given to the LOC by 20 June. HOCs would have to name the source of payments for their overruns and the causes.
Mr Jordaan said that the Confederations Cup would be contested by eight teams. Six of these would be the continental champions. At present,
Mr Modise said that 3 200 media professionals had attended the Confederations Cup in
He said that the LOC would go around the country in preparation.
Mr Modise said that the Confederations Cup would be billed as a festival of champions. A road show was planned. The LOC was working closely with the South African Broadcasting Corporation (SABC) on developing enthusiasm. A major difference between the two tournaments was that 90% of the spectators for the Confederations Cup would be local while 70% of World Cup spectators would come from overseas. A marketing strategy was needed together with a public education campaign. Tickets for the Confederations Cup would be much cheaper.
He said that the Confederations Cup would be a test tournament.
Ms Mjo said that there would be one national programme for LOC and HOC volunteers. There would be nine HOCs for the World Cup and five for the Confederations Cup. The LOC needed 5 000 volunteers for the earlier event and 15 000 for 2010. Registration would open on 1 July 2008. People from all areas could apply, and registration would be online. There would be 250 access centres throughout the country for those without access to computers and the internet. Registration would last for two months. Each centre would have five computers and three assistants. Training would occur from February to April. Volunteers would be left with lasting skills and training in customer service.
She said that the volunteers would be present in all areas, from the airports to the stadiums. Volunteers would also man information centres and assist with emergency services, tourism and places of entertainment. They would be provided with a uniform. The focus for 2009 would be on South African residents only, and applicants had to be at least eighteen years old. For 2010 applications from all over
Mr Jordaan sketched the progress of stadiums not earmarked for the Confederations Cup. The stadium in
He said that one of the legacy areas would be in accommodation. At present 35 000 rooms had been sourced out of the 55 000 required by FIFA. They were in the process of compiling contracts for the balance. This would include establishments other than hotels, such as game parks, lodges and bed and breakfast providers. The parks could accommodate 1 332 people during school holidays and 2 031 during school terms.
The CEO said that there had never been a question of moving the tournament. There was no Plan B. The official sponsors had paid R2.8 billion for the privilege in 2006, and this would increase to R3.2 billion for 2010. There were no contractual provisions for moving the tournament. Rather than look for discounts due to lower expectations in
He said that a billion people had watched the final in 2002, and 715 million in 2006. The total viewership for the 2006 event was 40 billion.
Ms Dlamini described a different legacy. One part would be the infrastructure in terms of stadiums. The match venues would provide high quality venues after 2010. Even the training venues would be of a standard to host PSL matches. This would contribute to the development of the sport. At the same time there was a programme of providing artificial turf pitches for the community. First National Bank was a major sponsor. FIFA’s commercial affiliates were making an extra contribution to social upliftment.
FIFA had a programme, which was called “20 for 2010”, to provide artificial turf pitches. The first had already been laid in Pietermaritzburg. The other venues were
Ms Dlamini said that the LOC had its own programme of artificial pitch provision. These would be delivered within a framework of promoting transformation. Discussions would be held with SAFA, and the LOC would provide three artificial pitches in each province by the end of 2010. Work would start on the first by the end of 2008.
She said that the transport and ICT systems would be major examples of an infrastructure legacy. The legacy for Africa in general would be addressed by another FIFA programme, namely the “Winning in Africa with
Ms Dlamini said that the World Cup would be a platform for
Mr C Frolick (ANC) said that the Committee had the utmost confidence in the LOC. The World Cup would be an unsurpassed event. He could see the results of the work of the LOC, and the contributions of the Executive members were noticeable. Government had responded by passing the Special Measures Act. These encompassed guarantees made to FIFA. Several Departments were involved.
Mr Frolick referred in particular to the obligations of the Department of Communication (DoC). There would be 40 billion viewers. He asked how much progress had been made towards digital television and the work required from Sentech. He asked if current efforts were appropriate enough, and if the related projects were on time.
Mr Frolick noted that the meetings with the HOCs were important, as this was where things would happen. There was a focus on the stadiums, but there were other guarantees that also had to be fulfilled. He asked how feasible the structures would be after 2010. This was not the core responsibility of the LOC, but they did bear some responsibilities. There would be an abundance of stadiums.
Mr D Dikgacwi (ANC) asked on the issue of Loftus Versveld and Ellis Park. These were not government stadiums. They were not accessible to the people because of the exorbitant admission fees. FIFA was financing the LOC, but he wanted to know what financial contribution SAFA was making. He also asked what percentage of funding was going towards salaries. He asked how the government 2010 Unit was co-operating with the LOC, and what role the Department of Sport (SRSA) was playing.
Mr Dikgacwi complained that if the written presentation had been presented on time then the Members would have more information and could interact better with the presenters.
Mr Dikgacwi noted that money was being spent on preparing the national team, and he asked how far these preparations had developed.
The Chairperson said this last question was not an LOC issue.
Mr Dikgacwi countered that it was a World Cup issue. He asked about the involvement of other stakeholders, particularly the youth. He asked how many disabled people and women were involved in the LOC.
Mr Dikgacwi asked how much work was still needed on the infrastructure. Work was needed on roads in the rural areas, not just in the HOC’s.
Mr D Lee (DA) said that a recurring item in the presentation was the budget overruns. The LOC would draw up a report, but he asked if there was any guess at this stage at what the amount was. He asked how worrying the high risk factors were. At the Royal Bafokeng Stadium the progress was only 25% compared to a targeted 43%. The project was lagging. The Confederations Cup would start in less than a year. He asked if the project would be completed in time, and if there was a contingency plan.
Mr Jordaan said that FIFA had given SAFA US $20 million. Half of this had been allocated to the building of the headquarters building and the other half to preparing the team. This money rested with SAFA.
The Chairperson said that Mr Jordaan must not answer this question. The Committee had no confidence in SAFA. There were no checks or balances. Entrusting such amounts of money to SAFA was an enormous risk.
Mr Jordaan said that there were two key issues on the ICT front.
The other concern was the infrastructure in the HOCs. There were various work streams such as water supply, power supply and transport. Each work group had a convenor. They were focussed too much on the stadiums. This was being dealt with at the forums. Both Loftus Versveld and Ellis Park were owned by the respective municipalities. The LOC would meet the next day with the Loftus Versveld stakeholders. The Committee should take up the issue of accessibility with the metros. He did not know what agreements existed between the cities and the stadium tenants.
The Chairperson said the issue had been discussed in the study group. The stadiums were leased on unreasonable terms. Technically they were owned by the respective operators, but in effect the money was being given to the operator of the stadium rather than the owners. The government could not give huge amounts of money to the federations, which had a 99 year lease. There should be some limited contractual intervention. If there were no negotiations then SRSA must address the issue. It might be necessary to revisit the terms of the leases.
Mr Jordaan agreed completely. National government had given money to their local counterparts. Some arrangement should be made, coupled to the value of the stadium. There was a need to change the relationship between local government and clubs or federations. The cities had put out the tenders.
The Chairperson said this was a myth. He had checked the contract, and the money had never been paid out.
Mr Jordaan said the stadium was SAFA property. The Department of Public Works (DPW) owned the land, and the structure had been paid for by a trust fund.
The Chairperson said that SAFA had the contracts.
Mr Jordaan replied that this might be another question for SAFA to answer. The ownership ratio was changing due to the upgrade. Historically, football had never owned any stadiums.
Ms Tlhagale said she did not want to speculate about the numbers associated with the budget overruns. The Royal Bafokeng Stadium would be completed on time despite a month’s delay. The estimated date had shifted to December 2008 from November, but this was still within the FIFA deadline. She was not too concerned. All FIFA needed at this stage was confirmation on the number of seats.
Mr Jordaan said that the control of the LOC related to the government. The highest authority at the LOC was the Board. They supervised four groups. A number of Cabinet Ministers were involved. The first group concentrated on football, under the auspices of the PSL and SAFA. The second was composed of business leaders. The third group represented the labour federations. The fourth group was the Technical Co-ordinating Committee. The various Chief Officers attended these meetings. The Ministers had key responsibilities, and chaired the relevant groups.
He admitted that there was no youth representation on the Board. Each group nominated its own representatives. The LOC had engaged with the ANC Youth League, and their concerns were on the Board’s agenda. There would be chances for youth and the disadvantaged to participate through legacy projects, SMME participation and as volunteers. The number of Board members was limited in terms of the Companies Act.
Ms Dlamini said that the National Youth Commission had been invited to attend legacy project meetings. The legacy group also worked closely with the Umsombomvu Youth Fund.
Mr Dikgacwi said that his question on salaries had not been answered. He noted that Eskom had submitted a report to the LOC, and asked what they said. He asked what problem signs existed regarding security. He anticipated that ticketing and safety would be major issues. He asked if the job creation that was promised would be in the skilled or unskilled field, and where these jobs would be. He felt that the projects would be biased towards cities and towns. He asked what criteria would be used to select volunteers.
Ms M Ntuli (ANC) said that two major stadiums would be provided in one city. One would become a white elephant. She asked what implications arose from the recent xenophobic disturbances. She asked how many women served on the LOC’s Board.
The Chairperson said that the Committee had interacted on the question of what would happen after 2010. The stadiums each had to provide a business case. He asked if these still made sense.
Mr Jordaan replied that the post-World Cup use of the stadiums was not an issue. The HOCs had all requested tenders for management agencies.
He said that he was sure that the stadiums at Green Point and Newlands would both be hugely successful. Options to add to the marketability of the Green Point Stadium would include situating a restaurant in the stadium, which would command spectacular views. Shopping malls and cinemas could be incorporated into the stadiums. They could be used for Church events and conferences. He said that the Wembley Stadium in
Another development for the Green Point Stadium was that the nearby Waterfront would use the stadium’s car park to boost their capacity. This would be a daily source of revenue. The existing stadium in
Mr Mti said that the LOC had submitted a security plan to FIFA on 31 March 2008. The document was 95 pages long, and when FIFA responded the previous week only three queries had been raised. On 30 June a concept document would be prepared for the World Cup. This could be presented to the Committee. There would be a security plan for each venue.
He said that the combating of crime was essentially a governmental responsibility. The LOC would be tasked to ensure the security of the FIFA family. There would be a clear distinction between the roles of the LOC and government. Minister Charles Nqakula was on the Board, and was a signatory to the relevant guarantees. All security organisations would be involved.
Mr Mti said that he was also responsible for protocol management and risk assessment. FIFA did not want to have Police involvement inside the stadiums, and private security companies would be contracted for this purpose. A ration of one security person to 100 spectators would be used. An important task was to preserve the festive mood. Threats to the tournament would be political extremism, hooliganism and drug trafficking.
The Chairperson said that English soccer hooligans had been kept out of three countries. Crime was a major problem, but was not unique to
Mr Jordaan said that all operational expenses, including salaries for LOC members, were paid by FIFA. No entity in
The Chairperson agreed that the LOC had to be paid properly.
Mr Jordaan said that some staff were recruited internationally and others locally. They were to deliver a complex event and the 2010 would be more demanding than the 2006 World Cup. In
Mr Dikgacwi said he was not apologetic. Money was not going where it was meant to go. He still wanted to know what the ratio of salaries was to other expenses. He said there must be a legacy in the rural areas. The employment of volunteers from these areas would help.
Mr Jordaan said that salaries were approximately less than 10% of the operating costs. They could never exceed other operating costs.
Ms Mjo said that there were two categories of volunteers, namely general and specialists, for example interpreters. Volunteers to be used to support the media would need an appropriate background and communication skills. They would also be looking with people possessing language skills relevant to the visiting countries.
The Chairperson asked what the situation was with transport. He realised that this was not really the LOC’s responsibility.
Mr Jordaan replied that a transport inspection had been conducted in
The Chairperson asked how the media professionals would be accredited. He said that the Sunday Times was responsible for a lot of negative reporting. He asked how the LOC planned to deal with them.
Mr Modise said that no media organisation would be marginalised. For coverage of the event, LOC would accredit the South African media, and FIFA would deal with accreditation of the international media by FIFA. The CEO was being proactive, and held quarterly meetings with a number of editors. The LOC held regular press conferences. The media were voracious and needed lots of information. Other departments reported on their own specialist areas such as transport.
The Chairperson asked whether SAFA had determined the locations of the artificial turf pitches. The 2010 legacy could not only be in the big towns, but also had to go to the rural areas. There should be a strategic allocation.
Ms Dlamini said that criteria had been given. A split had been devised, namely 50% to the rural areas, 30% to townships and 20% to schools. SAFA had deliberated where they should go. The pitches should be placed in communities where there was excellence in sport, particularly in football. There was no enforcement, and this applied to a number of initiatives. Funding was needed and in some cases government intervention as well. Capacity had to be built and they were looking at the cities outside the host venues.
The Chairperson said that the LOC must discuss the benefits of the World Cup on their next visit to the Committee. These would be huge, including a substantial legacy in tourism. He asked how the ordinary citizen, like the one selling beadwork on the roadside, would benefit. The culture of the different regions should be promoted. He asked which SMMEs would benefit, and what the involvement of women would be. There should be tangible benefits. He asked if local companies were being given the chance to make kit for the visiting teams. These were critical issues. So much was being imported from
Ms Dlamini thanked the Chairperson for his interest. She would provide statistics on the involvement of SMMEs.
The Chairperson asked about the project to build a better team. Mr Blatter had spoken about this.
Mr Jordaan said this was quite correct. The LOC was tasked to prepare the environment for the tournament while SAFA had to prepare the team. The performance of the host team was seen as being a pointer to the success of the tournament. The Board had met in November, and Mr Blatter had raised this point. It had been put on the agenda for the next meeting. Mr Raymond Hack of SAFA had been invited to attend. The event would lose energy if
The Chairperson said that the national team could never be built in four months. There had been talk about nationalising the team. Government had no intention of doing this, but was interested in aiding the development of the team. A big squad of about 45 players should be assembled now, but the authorities said that the squad training would only start four months before the event.
He asked for more information on the registration of volunteers. Members could spread the word when they were in their constituencies. The LOC should not leave everything up to the internet.
Mr Jordaan thanked the Committee, and noted that he would return to address the Committee on the outstanding issues.
The meeting adjourned.
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