Municipality Strengthen Proceedings to Recoup Money From GA Sport Service

www.MyPE.co.za: The
Nelson Mandela Bay Municipality has strengthened its proceedings to
recover more than R1 million from GA Sport Service, the company
responsible for the disastrous Eastern Cape Soccer Challenge in January.

The Municipality’s Council resolved at a full sitting that the legal
action instituted by the Legal Services Directorate against GA Sport
Service should be supported and that more stringent regulations be put
in place before entering into agreements with any company or sporting
association.

The tournament, which was scheduled to take place from 20 to 29 January
2009 at the EPRU Stadium, was cancelled by GA Sport Service due to a
lack of funds. This company needed R7,4 million to run the tournament
successfully but only managed to secure sponsorship of R1 million from
the Nelson Mandela Bay Municipality and R2 million from the Eastern
Cape Tourism Board.

Only 70 spectators pitched on opening night and another 200 on the
second night even though MFK Kosĭce (Slovakia), FC Moscow (Russia),
Jomo Cosmos and Bay United dished up great soccer on the field.

Shortly before the tournament was cancelled by GA Sport Service, hotels
in the city threatened to evict the teams and the Nelson Mandela Bay
Municipality stepped in to avoid a diplomatic spectacle.

As part of the sponsorship agreement the Municipality paid R745 614 to
GA Sport Service and another R348 379 to the hotels to avoid the
players from being evicted. Another R4,400 was paid for transport to
the Port Elizabeth airport.

It is all systems go for the Municipality’s legal team to recoup the
money spent on the tournament and a forensic audit is in progress.

Nelson
Mandela Bay Municipality Contacts
.

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