This is a copy of a media statement issued by the DA a year ago regarding the cancelled Dinokeng music festival that has now cost rate payers R65 million ! Subject: Media Statement by DA Cllr Adriana Randall : Pretoria : 30 September 2013 Media statement issued by Cllr Adriana Randall, DA Spokesperson for Finance in the Tshwane Metro: Pretoria: 30 September 2013 City of Tshwane to host the 2014 Dinokeng Fest This week during the monthly council meeting, a report was tabled seeking approval for the Dinokeng Fest partnership agreement. The Dinokeng Festival will be the anchor activity to the city’s celebrations of 20 years of democracy and is planned to take place in September 2014, aligned to heritage month. This fest will be a 3 day event, modelled against “Glastonbury festival” in the U.K. Cullinan has been identified by Sony Music and ROCK4000 as the perfect home of the festival due to its unique characteristics aligned to the nature of such festival Beyonce Knowles has been identified as the key headline artist for the inaugural festival alongside other award winning national and international artists. The partnership agreement will be signed for a period of three years and the City’s financial contribution will be capped at R20 million cash grant. In addition, the city is required to provide bulk water infrastructure, electricity, storm water drainage and drainage for ablution facilities, fencing, IT/Wi-Fi connectivity as well as City Services such as Metro Police etc. Such investment is estimated at R25 million. Cllr Adriana Randall, DA spokesperson for Finance in the metro, said that the DA is concerned about the huge financial commitment and that normal supply chain processes were not followed. The agreement was reached by means of an unsolicited bid. The venue, chosen for the Fest is a private property and will Tshwane invest R25 million in this privately owned property, whilst many residents in Cullinan and surrounding areas do not have the luxury of well-developed infrastructure and basic service delivery? She said that although the project will be executed in line with the 2013/14 and 2014/15 budget, partner departments will have to budget for non-event costs such as infrastructure development and other costs that may arise. Five percent of all revenue (from ticket sales) will be contributed to sustaining the Dinokeng Fest Legacy project (Rockstar Academy Legacy Project) through social investment, empowerment and job creation. Projected revenue from sponsorships, music sales, merchandise and hospitality is estimated at R235 million, whilst exposure through global outdoor advertising etc. is estimated at R8, 2 million. Cllr Randall said that the Department of Economic Development (DED) is responsible for the analysis of the viability of major investment projects and will establish whether the intended investment will make economic sense. DED is concerned that these major festivals (especially new ones) take up to three years to plan, market and implement. The basic Gantt chart provided in the report provides less than six months for actual implementation and DED therefore suggested that the event rather be postponed to the 2015 Freedom day celebrations. TEDA was also appointed to assist the City in evaluating these proposals, as the City in the past has committed itself to high risk projects without proper due diligence and economic viability studies being conducted. The agency will also be receiving a predetermined fee, not exceeding 5% and a portion of the profit of the event. Although the DA will support such initiatives we are concerned, especially in the light of concerns mentioned by the Department of Economic Development in their report and because of the major financial commitment made to this fest. Issued by DA Cllr Adriana Randall: Contact No: 083 263 8667
Posted on: Mon, 22 Sep 2014 21:03:23 +0000
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