The South African parliament's sport portfolio committee has launched an investigation into the disappearance of R50 million of 2010 Legacy Project fundsSouth Africa's sport portfolio committee chairman Richard Mdakane has admitted that the disappearance of R50 million in 2010 Legacy Projects funds was discovered in June last year during a visit to the Buffalo City municipality in the Eastern Cape.
“There was a problem about the legacy project when visited Buffalo City and an allegation was made that there is an amount of R50-million that is unaccounted for,” Mdakane said.
“We requested the department of sport and recreation in the Eastern Cape to deal with the matter [But] they have not really come back to us to hear exactly what happened.”
The funds allocated to the 2010 Legacy projects are supposed to be used in order to develop sporting infastructure in various provinces throughout South Africa, with over R30 billion originally invested in the tournament and the economic and sporting legacy it could create.
Buffalo City municipality has denied any loss of funds, with spokesman Keith Ngesi stating that the funds had not been embezelled, but that the original projects had stalled.
“We haven’’t heard anything suggesting that the R50-million has disappeared without doing the work,” Ngesi said.
“A greater portion of that money — about R21- million — has been used to upgrade Buffalo City Stadium and work has started in some fields that were identified as 2010 legacy projects.
“The metro is aware of the work that has not been done and responsible units within the metro are putting together a report including paid invoices with portfolio of evidence for work done.”
Mdakane has reiterated that the allegations will need to be investigated further, and is unhappy with the situation.
"We were not happy with the legacy project and we thought that there were a lot of things that we should have corrected a long time ago. The Eastern Cape department of sport and recreation should have dealt with this thing a long time ago,” Mdakane said.