The Newcastle Municipality has long faced financial challenges as it strives to maintain service delivery while failing infrastructure impacts thousands of residents daily. Yet, in a move that has sparked mixed reviews, the Municipality recently allocated approximately R500,000 towards a two-day sporting event.
On 10 October 2024, the Newcastle Municipality proudly announced its intention to host the annual Mayoral Cup Tournament, scheduled for 12 and 13 October 2024.
In the announcement, it was detailed that the event would encompass a variety of sporting codes, including rugby, netball, cricket, volleyball, golf, and soccer. Furthermore, the Municipality highlighted that the tournament would serve as the final selection process for the South African Local Government Association (SALGA) Games, set to take place in December this year.
The Municipality made it clear that the Mayoral Cup is not merely a sporting event but also a vital opportunity for young people to showcase their talents. It was further stressed that the tournament aims to foster holistic development. Additionally, the Municipality articulated that the primary goal of the games is to entertain participants while providing them with opportunities for self-expression and instilling values and discipline. The entity additionally asserted that the event has the potential to positively impact the lives of all students involved, irrespective of their gender, language, or social standing.
Despite the importance of the Mayoral Cup to the local community and the phenomenal opportunities offered to participating athletes, with the municipality constantly stating that it is in the red financially, Newcastillian News reached out to the Newcastle Municipality to gain insight into the event’s costs.
Additionally, we enquired about the source of funding, and what alternative uses the R500,000 might have been put towards, particularly in light of ongoing issues related to local roads and the deteriorating water and sewage infrastructure.
In exploring the details of the event, the Newcastle Municipality’s Communications Unit revealed that this year’s tournament attracted 1,515 participants. “The participants did extremely well; the spirit of competitiveness and enthusiasm was at its highest. The selections were also of high standards, considering that Newcastle consists of provincial and national athletes,” remarked the Communications Unit.
However, despite the promising talent showcased, the Communications Unit admitted that the total cost incurred by the Municipality for the event was around R500,000. This amount covered expenses such as transportation for athletes, catering for both athletes and officials, sporting equipment, and tents for officials and selectors.
However, when looking back, during a Ward 2 Public Meeting reported on 10 October 2024, the Newcastle Municipal Manager, Zamani Mcineka, confessed that the Municipality is technically bankrupt due to poor financial decisions made by previous administrations.
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In light of the Municipality’s financial predicament, as previously stated, Newcastillian News inquired how the necessary funds for the Mayoral Cup had been secured. Were they sourced from grants provided by Provincial Government Departments, or had the Municipality utilised budgeted funds?
“The Municipality has an annual budget for the Mayoral Cup, SALGA Games, and other activities,” the Communications Unit stated. In this context, Newcastillian News pressed further, asking how many pressing service delivery issues could have been resolved with the R500,000 if the event had not taken place.
The Communications Department responded, sidestepping the inquiry by stating, “The event is hosted annually and is budgeted for as part of the community development mandate of the Municipality, aimed at developing sports and supporting young people. The event saw over 1,500 young people in attendance, and those selected will have the opportunity to participate at Provincial and National levels.”
Further probing into the importance of the event, Newcastillian News questioned why the Municipality prioritised this event over addressing its ageing infrastructure.
The Communications Unit explained, “Newcastle is significantly affected by gangsterism, and promoting events such as this provides our communities, particularly the youth, with positive engagement opportunities, steering them away from crime.”
Following the Newcastle Municipality’s decision to allocate approximately R500,000 to the sporting event, Newcastillian News reached out to two businessmen, a civil rights organisation and a shopping mall for their perspective on the expenditure.
Peet Liebenberg from AfriForum Newcastle voiced strong concerns about this expenditure, emphasising the vital role of sports in fostering national and social unity. However, he questioned the justification for such a hefty sum being spent on a sporting event, particularly in light of the deteriorating local infrastructure.
Liebenberg pointed out, “There are sewage leaks in the CBD and residential areas, as well as areas such as Madadeni and Osizweni where people are more vulnerable to exposure to sewage. So, when you look at the money that was spent on the Mayoral Cup, I don’t understand that in light of our infrastructure and issues in Newcastle, why the money was put into a sporting event.”
He further elaborated that these funds could have been redirected towards addressing long-standing issues plaguing Newcastle.
Moreover, as the Municipality frequently cites financial constraints when questioned about service delivery and infrastructural challenges, Liebenberg suggested that the allocated money could have been utilised as a down payment on some of the Municipality’s accumulated debt. He further stated, “It just seems they don’t have their priorities right.”
Local business owner Andy Hsu, who operates in the industrial area, also expressed his shock at the significant amount spent on the Mayoral Cup. He remarked, “When looking at the road infrastructure in the CBD and the Industrial area, the money would have been better spent fixing the roads and addressing the potholes.” Hsu added that the funds could have been used to enhance the attractiveness of the Newcastle CBD and Industrial area, thereby drawing further investment.
Critiquing the Municipality’s emphasis on community upliftment through the sporting event, Hsu suggested that if the Municipality genuinely wished to support the community, they should have redirected the funds to purchase food and essential supplies for the impoverished residents of Newcastle who are struggling to make ends meet.
Robbie Matthee, Centre Manager of Amajuba Mall, shared his disbelief at the expenditure, stating, “I can’t believe that so much money was spent on a sports event when there are potholes everywhere, leaking sewage that is so bad that KFC, which is situated close to us, has to close occasionally until the mess is cleaned up.”
It should be pointed out that numerous businesses at the Amajuba Mall were impacted by massive sewage leaks during the course of July 2023, with sewage flowing into the mall’s premises and leaving shoppers and businesses gagging.
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Despite the concerns about the monies being spent on a sporting event, local Radiographer and businessman, Sifiso Mahlalela explained that he believed the funds invested in the sporting event was a good decision. “From a business perspective, it is holistic marketing where the Municipality actually gives back to the community it serves, over clients and service providers.”
Additionally, he noted that if the Newcastle Municipality took the necessary steps to budget for the event, especially when looking at their financial situation, it showed their commitment to youth development.
“Sporting events such as this benefits the youth, as it keeps them busy and focused, and away from drugs which is good in combating the drug scourge in Newcastle,” emphasised Mahlalela.
As the Newcastle Municipality’s decision to allocate approximately R500,000 towards the Mayoral Cup Tournament has sparked debate, what are your thoughts on the above? Share your views in the comment section below.
Comments 5
I don’t think you asked the municipality the right questions with regards to side stepping. Rather ask what is the total annual budget allocated towards the sporting events and so on, and the budget allocated for roads maintenance and sewer maintenance. And what has been spent so far in this finicial year.
And the fact it was announced on 10 October due to be held on 12 and 13 October? It does not take 2 days to plan…..you guys need to dig deeper for current and ongoing affairs
A lot of hogwash from the Municipality and the Radiographer cum Businessman. These type of events are nothing more that promotion of a political party.
Newcastle municipality is charging the community electricity and water availability. Which is illegal. As far as I know Newcastle is the only municipality that charges exorbitant amounts. Steps should be taken to rectify this as soon as possible. Community should only be charged for what they use. Community needs take a stand. Come on guys let’s work together.
This shows how we are content to be led by those without vision. This is the second instance where funds are chowed thru these games. In December 2022 if am not mistaken these were held with the poorest of organization. The shouts of people about sewer spillages reach deaf ears. Addressing the issue of drugs doesn’t need half a million rands. Infrastructure is beyond being called dilapidated it’s in ruins. Horse racing was part of chowing funds. God help us all. Ngizwe said they are events organization. Therefore the municipalities they lead will be of events not service delivey
Our rates are specifically for the development and maintenance of the town not for personal and political upliftment. It should be noted that only a few of the 37 wards contribute to the maintenance of the town and this money spent on these events benefit some that contribute zero so don’t talk nonsense about giving back to the community. This is why this town is bankrupt, because too many residents contribute NOTHING to the towns development.
The paying ratepayer is not responsible for other people’s children and their drug or gangster related life. It is the parents responsible to bring children up to become good honest productive adults.