Sport

R633m racing investment under scrutiny

Adrian Pheiffer|Published

Let's start by stating emphatically that politics is not my cup of rooibos. Those guys generally speak so well, they could get me to nod my head about almost anything.

I listen rapturously to Bob Mugabe and the Rev Alan Boesak for instance and I believe them.

Well I do until someone equally slick comes and convinces me otherwise.

Now I have a similar motorsport problem.

But in fairness, this one was not from the mouth of any superbly eloquent speaker - I first read about it in a report released by the Democratic Alliance at a media briefing last week.

It seems Jack Bloom, DA corruption spokesman in Gauteng, is upset about a huge motorsport "rip-off" in the province and is calling for an investigation - leaked documents show that more than R600-million is to be paid for motorsport development that is said will do little to boost the economy or create jobs.

The province is liable for R150-million over three years for the A1 Grand Prix, R444-million over seven years for the Superbike world championship and R39 million for three years of the Super Stars Series.

A report by Bowman Gilfillan, prepared for an agency of the Gauteng Department of Economic Development (DED), is extremely critical of glaring irregularities in the motorsport projects and the high-risk contracts entered into.

It identifies a number of deficiencies before stating that, "we could not determine the value that DED is deriving from these activities".

It points out that the government generally does not sponsor professional organisations and that "unfortunately, the contract under review is structured such that it could be argued that DED is primarily sponsoring F1 and the A1 Grand Prix and nothing more."

Claimed expenses already incurred are mind-boggling: almost R2,5-million to Herman Tilke, for a Master Plan Study, for a F1 circuit; R30-million for the Renault F1 road show and R65-million (unconfirmed), for the silly GO-GP.org.za logo displayed by the Sauber F1 team.

Bloom continued that he was reminded of the R600-million wasted in the Phakisa fiasco and the R92-million spent on the A1 Series in Durban.

Getting back to my admiration for graphic description for a moment, I remember that when the Phakisa bubble burst after entrepreneur Bobby Hartslief (who farms cheetahs in Colorado these days) and Webster Mfebe the Free State MEC for sport, arts, culture, science and technology, had collaborated on the deal, Noseweek published an article about South African Grand Pricks.

Anyway, responding to Bloom's claims, Gauteng finance MEC Firoz Cachalia says the motorsport projects would generate 3 000 jobs and an income of R2-billion for the province.

He added that an economic impact study conducted by audit firm Grant Thornton projected an eight percent increase in the province's GDP as a result of the projects.

Cachalia refuted Bowman Gilfillan's findings that the department of economic development was sponsoring the A1 races.

Motorsport South Africa (MSA), have now entered the fray, saying they will co-operate with any official body in the event of an inquiry.

MSA chairman Roger Pearce said: "While we acknowledge the economic impact motorsport events have on tourism, business and communities, we do not condone any irregularities."

MSA had a meeting with the Department of Sport and Recreation recently and voiced its concern with regard to the difficulty the National Sports Foundation finds itself in when promoters and sponsors liaise directly with rights holders and enter into agreements without prior approval from National Federations.

The controlling body was never consulted prior to the conclusion of the contentious agreements.

I'm looking forward to the outcome of this one.