The Nelson Mandela Bay Municipality has confirmed that it is taking legal action against NMB stadium operator, Access Management, to recover hundreds of millions of Rands.
The office of the executive mayor, Athol Trollip, said Wednesday that papers were lodged in a bid to recoup some R230m.
A formal statement is expected on Thursday.
Meanwhile, civil rights group AfriForum said it welcomed the decision by the Nelson Mandela Bay Metro Council to sue Access Facilities and Leisure Management, CEO, Riaan Oberholzer and two employes, "for compensation of almost R200 million for alleged misrepresentation”.
AfriForum said in a statement Wednesday that it took steps in October 2015 and submitted a court application to set aside the Metro Council’s decision to reappoint Access as the stadium’s operators.
“The civil rights organisation requested that an independent forensic audit be performed on the operations of the operator and that steps be taken to collect any losses.”
AfriForum said it met executive mayor, Athol Trollip, in October in a bid to prevent further public expenses through litigation, as well as to tackle fraud together.
Pieter Rautenbach, AfriForum’s General Counsellor for Community Structures, said “after an in-depth discussion with Trollip that it was liberating to no longer be confronted with the delaying tactics of the previous Council”.
