WHAT sparked Friday’s opposition walkout at the City of uMhlathuze’s final council meeting, were accusations of ‘double standards’ in what the DA termed an ‘ANC decision’ to increase soccer club funding while seemingly strong-arming other clubs into paying commercial rental rates.
DA Chief Whip, Cllr Christo Botha, requested the matter of clubs’ leases to be referred to the Development Portfolio Committee.
He also requested each club be given an opportunity to present to the municipality their operations, community service activities, income and operating expenses.
This after clubs occupying waterfront property in Richards Bay were recently advised they will soon have to pay full commercial rental rates.
Depending on the square meterage of the land occupied, quoted commercial rental rates range between R20 000 and R85 000 per month.
Supporting Botha’s request, other councillors said the clubs stimulate activities in the area and the municipality must undertake due diligence before deciding on rental rates.
ALSO READ: Council walkout over soccer funding
Saying this was merely a progress report, the Speaker, Cllr Mthenjana, said negotiations could be done at any time.
However, giving the clubs an opportunity to present their case was not agreed upon, with numerous councillors calling for an end to ‘white elitist’ clubs.
Botha said that should the clubs be forced to close, unemployment would be a major knock-on effect as hundreds of people would lose jobs.
However, councillors supporting clubs’ increased rentals deemed the unemployment argument invalid.
The local economy would also take a knock as clubs, particularly the yacht club, attract international visitors who spend thousands of Rands locally when moored in Richards Bay.
‘Completely against’ the municipality’s proposal for the clubs, DA’s Cllr Viljoen said this, with misconceptions of clubs being profit-making businesses, is evidence that no consulations had been done.
In his capacity as representative of Meerensee Boat Club, Lucas Landman yesterday (Wednesday) attended a meeting with a municipal councillor who, contrary to the Speaker’s statement that the clubs’ rental issue appeared on council’s agenda as a progress report, stated commercial rental was a done deal and that the boat club would from next month be liable for a monthly rental of R45 000 for one year but, beyond this, no lease extensions would be issued.
No negotiations
‘A commercial lease is drawn up after intensive negotiations between both parties and is based on mutual agreement,’ said Landman.
‘There were no municipal site visits nor rental negotiations, we are just being presented with a lease to which we did not agree.’
Landman said the clubs must each take the matter to their members, and that there are numerous options going forward.
Meanwhile, at the earlier Exco meeting, it was agreed that funding for Richards Bay Soccer Club would be increased from the proposed R1.5-million to R2.5-million, an agenda item that was not received well at council.
The contested issue was hotly debated when the DA requested a divisional vote, which was rejected by Mthenjana.
Termed by EFF’s Cllr Ngubane as ‘wasteful expenditure’, the funding was objected to by all opposition parties, resulting in the walkout.
‘We object to receiving an amended agenda as we are walking into council,’ said the EFF’s Cllr Rebecca Mohlala.
‘We were happy for the municipality to fund Thanda Royal Zulu, but as soon as the club made PSL, it was sold off.
‘Why would we agree to funding a new team when the same might happen again?
‘We prefer municipal funding to benefit all taxpayers.’
Echoing Mohlala’s sentiments, Botha said funding for Thanda was supported by all parties, but after upgrades and sponsorship, the club owner sold the club and all intended benefits for the City of Umhlathuze were lost.
‘Since the recent fiasco we are no longer willing to waste millions on a club which has not yielded any return on investment.’
At the time of going to print, the City of uMhlathuze had not issued a statement.
The IFP held a press conference on the matter yesterday (Thursday).
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