Parliament’s Portfolio Committee for Tourism has called for an immediate end to South African Tourism’s plans for a controversial R1 billion (€48 million) sponsorship deal with English Premier League (EPL) football side, Tottenham Hotspur.
Acting CEO of SA Tourism, Themba Khumalo, along with other high-ranking members of the marketing body, appeared before the committee on Tuesday (February 7) for an all-day meeting over the proposed deal.
In a detailed briefing, Khumalo presented the potential benefits, marketing value and strategic reasoning behind the proposed sponsorship.
Members of Parliament comprising the committee were adamant in their assertions that the proposal should not move forward, and also called for an investigation into alleged improprieties around the deal.
“This deal ends here, today, now. And we are saying there must be an investigation on this matter with immediate effect,” said Committee Chairperson, Thandi Mahambehlala, who added that, should SA Tourism opt to pursue the sponsorship deal, the committee would write to National Treasury and President Cyril Ramaphosa asking for a reallocation of the funds.
Industry stakeholders relieved
Speaking to Tourism Update regarding the committee meeting, Tshifhiwa Tshivhengwa, CEO of the Tourism Business Council of South Africa (TBCSA), agreed that the funds should be spent elsewhere.
“As the TBCSA we remain of the view that the money should be spent on the agreed-upon strategies of focused marketing campaigns in key emerging source markets, and converting the considerable existing awareness of South Africa into travel bookings,” said Tshivhengwa.
He said the continued lack of collaboration between SA Tourism and the private sector was a “significant concern”. “We have a Memorandum of Agreement with SA Tourism that before their annual performance plans are put together, the private sector provides their input.
“We have reached out our hands repeatedly and stressed that, in order for tourism to work, we need collaboration. How can we as an industry progress if we are not able to provide input ourselves?”
Minister responds to late appearance
Tourism Minister Lindiwe Sisulu’s absence from Tuesday’s meeting raised the ire of the committee. The Minister appeared half an hour before the close of the meeting.
Sisulu’s spokesperson Steve Motale clarified in a press statement that the Minister had sent an apology to the Portfolio Committee explaining that she would be attending a concurrent Cabinet Committees meeting chaired by President Cyril Ramaphosa.
“Minister Sisulu takes exception to the decision of the Portfolio Committee not to read her written apology. Minister Sisulu wishes to re-emphasise yet again that she respects the Portfolio Committee in its role as an extension of Parliament to exercise oversight. She has always supported the mandate and work of the committee and will continue to do so,” Motale wrote.
CFO says WWP Group relationship ‘above board’
Furthermore, SA Tourism CFO, Johan van der Walt, has been placed under scrutiny for his alleged ties to a R31 million (€1.8m) upfront fee required by March 2023 – according to the proposal initially leaked to the media – to activate the partnership.
Van der Walt has admitted to having a previous relationship with WWP Group, the sports marketing agency named as the recipient of the fee, but said in parliament that his involvement in providing consultancy services to WWP was above board.
"When I was approached to assist them, it was strictly in line with power of attorney or delegation granted to me," said Van der Walt.
