ActionSA is deeply concerned that the Moses Mabhida Stadium is operating at a significant loss and as such, is costing the residents and businesses of eThekwini Municipality dearly.
For the year ending June 2023, the stadium made an operating loss of R228 million with total expenditure of R275 million versus total revenue of only R47 million. The current year’s budget reflects a loss of R213 million.
An examination of the detailed revenue and expense breakdown of the stadium shows how dire the financial situation at Moses Mabhida is, one example being employee costs at the stadium.
For the year ending June 2023, employee costs for the year were R58 million, yet the stadium’s total revenue for the year was only R47 million. Similarly, with contracting services (cleaning, security etc.), which were R53 million for the year. Again, one expense line item higher than total revenue.
The massive losses which continue to be incurred by the stadium are unacceptable.
In an environment when service delivery is at an all-time low, infrastructure is collapsing, and residents and businesses of eThekwini are faced with higher than inflationary tariff increases it is extremely worrying that the stadium continues to make these enormous losses.
In addition, to these huge losses there are others serous warnings bells around Moses Mabhida Stadium. These include:
– the SkyCar which has not operated since 2018 and was meant to be a major tourist attraction for the city.
– many tenants not renewing their leases and either moving away or closing.
– the Comrades Marathon Association dropping of Moses Mabhida Stadium as the race’s finish venue due largely to complaints from runners and their clubs.
– structural damage and general deterioration of the stadium.
The huge financial losses incurred by the stadium and other warning bells points to an ANC led municipality that is incapable of not only running Moses Mabhida but the city as a whole. It is inconceivable that the Mayor and his cohorts can allow the stadium to continue to deteriorate and incur such losses. Unfortunately, it is the residents and businesses of eThekwini who have to make good these massive losses.
There has been a lack of transparency by the ANC-led municipality on the state of the financial affairs of Moses Mabhida Stadium. It has only been through the persistent asking of questions by ActionSA that the detailed breakdown of income and expenses has become available. One must ask what are those in power trying to hide? Incompetence and Corruption?
ActionSA will continue to ask the difficult questions related to Moses Mabhida and will ensure there is greater transparency of the financial performance of the stadium.
Furthermore, ActionSA will ensure that the financial losses and various warning bells around the stadium are elevated at Council. ActionSA will insist that plans are put into place to ensure that Moses Mabhida stadium does not continue to be “a white elephant” which continues to cost residents and businesses of eThekwini for years to come.
Moses Mabhida Stadium Operating at a R228 Million Annual Loss
ActionSA is deeply concerned that the Moses Mabhida Stadium is operating at a significant loss and as such, is costing the residents and businesses of eThekwini Municipality dearly.
For the year ending June 2023, the stadium made an operating loss of R228 million with total expenditure of R275 million versus total revenue of only R47 million. The current year’s budget reflects a loss of R213 million.
An examination of the detailed revenue and expense breakdown of the stadium shows how dire the financial situation at Moses Mabhida is, one example being employee costs at the stadium.
For the year ending June 2023, employee costs for the year were R58 million, yet the stadium’s total revenue for the year was only R47 million. Similarly, with contracting services (cleaning, security etc.), which were R53 million for the year. Again, one expense line item higher than total revenue.
The massive losses which continue to be incurred by the stadium are unacceptable.
In an environment when service delivery is at an all-time low, infrastructure is collapsing, and residents and businesses of eThekwini are faced with higher than inflationary tariff increases it is extremely worrying that the stadium continues to make these enormous losses.
In addition, to these huge losses there are others serous warnings bells around Moses Mabhida Stadium. These include:
– the SkyCar which has not operated since 2018 and was meant to be a major tourist attraction for the city.
– many tenants not renewing their leases and either moving away or closing.
– the Comrades Marathon Association dropping of Moses Mabhida Stadium as the race’s finish venue due largely to complaints from runners and their clubs.
– structural damage and general deterioration of the stadium.
The huge financial losses incurred by the stadium and other warning bells points to an ANC led municipality that is incapable of not only running Moses Mabhida but the city as a whole. It is inconceivable that the Mayor and his cohorts can allow the stadium to continue to deteriorate and incur such losses. Unfortunately, it is the residents and businesses of eThekwini who have to make good these massive losses.
There has been a lack of transparency by the ANC-led municipality on the state of the financial affairs of Moses Mabhida Stadium. It has only been through the persistent asking of questions by ActionSA that the detailed breakdown of income and expenses has become available. One must ask what are those in power trying to hide? Incompetence and Corruption?
ActionSA will continue to ask the difficult questions related to Moses Mabhida and will ensure there is greater transparency of the financial performance of the stadium.
Furthermore, ActionSA will ensure that the financial losses and various warning bells around the stadium are elevated at Council. ActionSA will insist that plans are put into place to ensure that Moses Mabhida stadium does not continue to be “a white elephant” which continues to cost residents and businesses of eThekwini for years to come.