The Gauteng government has decided to wind up the Gauteng Motorsport Company, which is tasked with running the province’s motorsport programme.
This follows economic development MEC Firoz Cachalia’s call for the review of the programme after it was revealed that his department invested R500m in a sport not popular in SA.
Business Day has learnt that a decision has been take to dissolve the company and terminate all motorsport contracts.
Blue IQ CEO Amanda Nair confirmed last week that the Motorsport Company had been dissolved but refused to comment on the decision to terminate contracts.
On the future of the sport in the province, Nair said: “The motorsport programme of the Gauteng department of economic development is under review. Further queries should be directed to the MEC’s office or further information will be made available once this review has been completed.”
Cachalia’s spokesman, Mandla Radebe, also said the programme was under review. “On legal advi ce, the MEC cannot make pronouncements now. An announcement will be made in due course,” said Radebe.
A senior official told Business Day that Cachalia has written to Premier Nomvula Mokonyane recommending that the government cancel all four contracts.
The contracts were negotiated while Mbhazima Shilowa was premier and signed while former premier Paul Mashatile was MEC for economic development.
Through the Gauteng Motorsport Company the economic development department last year acquired the rights to hold the A1 GP for three years, the Superbike World Championships for five years, Superstars Series for three years and a marketing deal with the BMW Sauber Formula One team.
The terms of some of the contracts make it difficult for the government to pull out as they favour overseas motorsport bodies.
[source: businessday.co.za]
Related Stories:
- meanwhile RSA Gauteng Political Argument Rolls On
A bitter R4-million defamation case is about to highlight some important questions about mega-contracts flowing through Gauteng’s economic development agencies. In October 2008 Nomhle Canca -- one of South Africa’s top...... - Still the RSA Political Motorsport Cost Argument Rolls On!
Still the political argument over the costs of motorsport in Gauteng continue with the latest statement from Jack Bloom MPL Democratic Alliance Gauteng corruption spokesman - which we list below in its entirety...... - RSA Political Motorsport Cost Argument Rolls On!
Jack Bloom, MPL, Corruption Spokesman, DA Gauteng, continues his attack on the financing of motorsport events in South Africa........ - RSA “and” Defending Motorsport Costs
Gauteng Economic Development MEC Firoz Cachalia has defended the province's decision not to proceed to acquire the rights to host Formula 1 events. This, amid claims that the F1 bid campaign has already cost...... - RSA Political Backlash at Motorsport Costs
Leaked documents to the Democratic Alliance show that more than R600 [US$74] million is to be paid for motorsports promotion in Gauteng that will do little to boost the economy or create jobs. We will...