PORTFOLIO ON SPORT AND RECREATION 2010 FIFA SOCCER WORLD CUP BRIEFING
14 July 2005
(a) To inform the Portfolio Committee on Sport and Recreation, on progress from the inception of the FIFA 2010 Unit in the department, (13th January 2005) to the present. (b) To update the Portfolio Committee on Developments to date in the preparations for successfully hosting the FIFA 2010 World Cup .
South Africa was awarded the right to host the 2010 FIFA World Cup™ on 15 May 2004. The Organising Association Agreement (OAA) was signed by SAFA in August 2003, alongside all other countries anticipating the prospect of winning the Bid. Five months after awarding South Africa the hosting rights, and satisfied about the undertakings made by the South African Football Association, and by the South African Government, FIFA signed the Agreement in October 2004. A dedicated Unit for the event was set up in the Department in January 2005.
3. PHASES FOR THE PLANNING, HOSTING AND WRAPPING UP OF THE 2010 FIFA WORLD CUP™
The following phases in the organisation of the event have been identified:
Phase I – Conclusion of contracts, conceptualisation of projects and determination of resource requirements and sources (2005-2006)
Phase II – Strategic Planning (2005-2006)
Phase III – Conceptualisation of Operations (2006-2007)
Phase IV – Development and Finalisation of Operating Plans (2008-2009)
Phase V – Test and Refine Operating Plans (2009)
Phase VI – Operational Plan Readiness and Implementation (2010)
Phase VII – Debrief (2010)
The first phase, particularly the conclusion of contracts and conceptualisation of the project is nearly complete.
4. PREPARATORY STRUCTURES
Government established an Inter-Ministerial Committee (IMC), representing the Departments, which signed guarantees to FIFA, at the time South Africa was bidding to host the FIFA 2010 World Cup Tournament. A Core Group of Ministries has maintained contact with SAFA and, in particular, the Preparatory Committee. The latter Committee was mandated by SAFA to discuss the establishment of a Local Organising Committee (LOC) with Government. The Deputy President assisted by the Minister of Sport and Recreation coordinates the Inter – Ministerial Committee.
The following departments are involved: The Presidency, Foreign Affairs, Home Affairs, National Treasury, Safety and Security, Transport, Environmental Affairs and Tourism, Trade and Industry, Communication, and Health. Even though DPLG has not provided FIFA with a guarantee, their relationship with the Provincial and Local Authorities, the sites where World Cup matches will take place, locates them strategically to play a significant, coordinating role. Collectively Government Departments have provided eighteen guarantees to FIFA.
The Departments of Core Ministers have continued to meet with the relevant SAFA sub-committees. Legal advisors from National Treasury and from the Department of Justice have been drafted into the sub-committee dealing with legal matters while other officials were drafted into the second sub-committee dealing with local government, stadiums, accommodation and other logistics. The two SAFA Committees analysed what FIFA expects of South Africa to identify the measures required to ensure compliance with FIFA's requirements.
FIFA 2010 World CupTM IMC.
Ministers that constitute the Inter-Ministerial Committee are from:
Sport and Recreation
Safety and Security
Environmental Affairs and Tourism
Provincial and Local Government
Trade and Industry
Arts and Culture
The core Ministries comprise those from:
a SPORT AND RECREATION SOUTH AFRICA
b THE PRESIDENCY
c FOREIGN AFFAIRS
d SAFETY AND SECURITY
THE LOCAL ORGANISING COMMITTEE (LOC)
SAFA legal representatives and SRSA participated in weekly status update meetings from January till 03 May 2005. The purpose of these meetings was to review and identify obstacles towards the implementation of Government Guarantees. These meetings cleared up outstanding issues between government and SAFA, and were the build up to the legal workshops, which enabled all departments to examine steps, needed to fulfill their agreements. FIFA has accepted the name of the LOC as the " FIFA 2010 World Cup™ Local Organising Committee".
The membership of the LOC is as follows:
Chairman: Dr. Irvin Khoza, Chief Executive Officer, Danny Jordaan ( 01 April 2005). Directors are: Mr. M. Olifant, Mr. Kenneth Lebenya, Mr Kaizer Motaung, Mr. Mubarak Mahomed, Ms. Natasha Tsichlas, Mr. Raymond Hack, Ministers Revd MA Stofile, Dr Essop Pahad, Mr. Charles Nqakula, Mr. Jeff Radebe, Mr. Jabu Moleketi, Corporate Mr Tokyo Sexwale, Prof Michael Katz and Mr Koos Bekker. The LOC has been meeting on an ongoing basis. The LOC has secured FIFA’s agreement about assuming the structure of a Section 21 Company. The purpose is to give the LOC Tax Exemption and Public Benefit Organisation status. The most important issues being finalised with SAFA are the SAFA/LOC Service Level Agreement, and the Memorandum and Articles of Association of the LOC. The first of these will provide for a cession and delegation of rights and duties from SAFA to the LOC. The signing of the Memorandum and Articles of Association will complete preparations for the registration of the LOC.
SRSA MEETINGS WITH OTHER GOVERNMENT DEPARTMENTS
SAFA Legal representative and SRSA participated in weekly status update meetings from January till 03 May 2005. The purpose of these meetings was to review and identify obstacles towards the implementation of Government guarantees. These meetings were the build up of the legal workshops explained below. The SRSA FIFA 2010TM Unit also held various meetings with individual government departments on the following issues and legislative amendments:
SRSA met the Department of Trade and Industry to prepare for the granting of Protected Event Status to the Tournament. The Department of Agriculture, which was met to discuss the granting of rights to FIFA's alcohol sponsors, for the importation and labeling of liquor . Although Agriculture did not sign any guarantee, the Department of Trade and Industry's guarantee on the importation of liquor by FIFA’s sponsors is the competence of Agriculture. The Department of Agriculture is still studying the impact of this on their current legislation. The DTI also had to examine compliance by business contractors with the BEE Act 53 of 2004, the Preferential Procurement Policy Framework Act 5 of 2005 and the Rights Protection Program. Close attention has been paid to the duration after the event of continued protection.
The Department of Safety and security is examining Amendments needed to legislation in light of guarantees, for example on safety in stadiums. This Department already has operational plans, which it carries out in all centers, which host big outdoor events. FIFA is yet to bring its own security experts to harmonise its security concept with that of the SAPS.
Interaction with Treasury has been on government coordination and preparation business plans and budgets.
GOVERNMENT GUARANTEES AND LEGISLATION.
In terms of clause 8.8 of the Organising Association Agreement (OAA), the necessary laws and ordinances must be passed and/or the necessary orders and other decisions must be taken by the competent authorities in order to ensure compliance and fulfillment of the Government Declaration and the Government Guarantees.
By 15 December 2005 the South African Government is expected to have passed all laws and ordinances necessary. A timetable for meeting the FIFA deadlines has been drafted. SAFA lawyers have indicated their satisfaction with the deliberations with the departments concerned and indicated that progress in the departments themselves is on track. Two amendment Bills need to be enacted by Parliament, namely:
2010 FIFA World Cup™ Special Measures Bill, dealing with all matters pertaining to hosting the event except for money issues. This Bill will be sponsored by Sport and Recreation South Africa. The 2010 FIFA World Cup™ Cup Financial Measures Bill dealing with all issues pertaining to money matters such as taxes, levies, duties, surcharges, etc; will be sponsored by National Treasury
MAJOR WORKSHOPS FACILITATED BY THE FIFA 2010 SRSA UNIT
The Unit facilitated the first Legal Workshop on the 09 March at the Union Buildings. The meeting produced a set of questions, which were sent to FIFA through SAFA on the 16 March 2005. The questions related to clarification on government guarantees, size and hierarchy of the FIFA delegation and suitable dates for a comprehensive legal workshop with FIFA.
Subsequently a larger Legal Workshop involving representatives of SAFA, the Government and FIFA took place on the 05 – 06 May 2005 at the Sandton Convention Centre and addressed the above. FIFA expressed their satisfaction with progress.
This is the first time that the event is hosted on the African continent in the 100- year history of FIFA. South Africa presented its original FIFA 2006 bid as "Africa’s Stage. South Africa is expected to project the "Africanness of the event" and strive to be as inclusive as possible in relation to the continent.
Between March and April 2005. SRSA has met with African Union Commission, Zone 6 Sports Ministers and the Supreme Council for Sports in Africa. These meetings were focused on fulfilling South Africa’s obligation to giving the FIFA 2010 World Cup TournamentTM an African character. African countries expect to be involved in one or the other way. Cabinet has agreed that a common understanding of the concept should be developed collectively. To this end, three workshops, national, regional and continental are planned for the period June to September 2005. Since FIFA has accepted the interlinking of Arts and Culture with the 2006 Tournament in Germany, South Africa, and Africa envisage presenting a huge feast of African culture on the sidelines of the 2010 Tournament.
The Inter-Ministerial Committee and SAFA have also been in touch with FIFA and the German LOC, to ensure that South Africa shadows its German counterparts in the preparations and staging of the FIFA 2006 Germany World CupTM. The relationship with MATCH was also discussed and is still being negotiated presently. (MATCH is an acronym for a company that has been contracted by FIFA to deal with the Management of Accommodation, Ticketing, Hospitality and Computer (IT) related matters associated with the event).
All the above aspects relate to the pre-formal phase in the organisation of the event. A list of key milestones and relevant delivery dates has been developed. The LOC is expected to report to FIFA on a quarterly basis on progress achieved with planning for the Championships, the budget and audited, interim financial accounts for evaluating the financial situation.
The deadline for South Africa to provide FIFA with the list of Stadiums for the tournament is 15 January 2007. The Bid Book reflected South Africa’s intention to use 13 stadiums for the FIFA 2010 World Cup Tournament. FIFA advises that a smaller number such as eight would make the event more profitable. The Development Bank of Southern Africa (DBSA) has produced a "host cities capacity audit". A workshop was held with managers and engineers of candidate cities on 02 June 2005. The final decision on match venues will be taken by the IMC. Some of the venues that will drop off from the list could still host warm-up and practice matches. The current enthusiasm on the part of local authorities to plan ahead of the IMC’s decisions taken has been discouraged by the Minister of Sport and Recreation the IMC.
FIFA had to be provided with comprehensive details on the budget for both revenue and expense items by the end of August 2004.
SRSA included the budget for Government’s commitment to the provision of stadiums in its Medium Term Expenditure Framework (MTEF) Budget for the next three years during which these venues have to be completed in time for the FIFA inspection team in 2007. The total cost for the building of new and the upgrading of existing stadium (all thirteen) amounted to R1, 626 billion. Should only nine or ten stadiums be prepared, however, there will be a substantial saving on this amount. SRSA also included the organisational costs in its budget and, in particular, the development of the human resource needs for hosting the event. This amounted to a further R375 million over the period to 2010. It is expected that the other Departments that provided FIFA guarantees will budget independently for the commitments that they made in those documents.
GCIS has developed a draft, communication framework strategy detailing the special opportunity that the 2010 FIFA World Cup™ presents for the country relative to the continent, and internationally. It also addresses the challenges that lie ahead, provides a framework for phasing communication and developing themes for the different phases and the relationship of the communication sector with the structures and processes associated with the event. A Communications Task Team will be set up.
With the establishment of the Technical Team, Departments have been urged by the Ministers in the LOC to dedicate senior personnel to strengthen the capacity of the Team. Work previously carried out by the SRSA FIFA 2010 Unit will be consolidated into the Technical Team headed by Director General level CEO as decided upon by the IMC. A scooping workshop, on 04 July 2005, will draft the operational guidelines of the technical team and the Job Description of the government co-ordination CEO for FIFA 2010. All in all, government preparations are on track.