The Nelson Mandela Bay Municipality will give 15 million rand to EP Rugby to cover the Union's liquidation debt, despite an objection by Deputy executive mayor, Mongameli Bobani.
DA Councillor, Andrew Whitfield, sought approval for the payment at the Mayoral Committee Meeting in Port Elizabeth today, adding that in return the Metro will get three international rugby tests at the Nelson Mandela Bay Stadium over a four year period.
Whitfield said the payment would assist in regaining the commercial rights to professional rugby and create a clean slate for the sport in the Metro going forward.
He said it would further ensure a professional relationship with sponsors which are key to the commercialisation and sutainability of the Nelson Mandela Bay Stadium.
"What we are asking for is R15 million to invest with the return of almost R500 million over three years and a direct appreciating contribution to the income statement of the Nelson Mandela Bay Stadium, a boost to the local economy and the creation of more than a thousand jobs."
However, Deputy executive mayor, Mongameli Bobani, objected to the matter saying the Municipality can't be seen to be misusing tax payers' money by bailing out a union that misused their money in the first place.
He said the Union must fix their own problems, because should they bail out EP Rugby then they might have to do the same for another provincial team that mismanaged their funds as well.
Executive Mayor Athol Trollip noted Bobani's objection before Whitfield's motion was approved by the Mayoral Committee.
