03 February 2011
The Congress of South African Trade Unions has raised concern over what it calls the “mismanagement of millions of rands” used in the construction of the Cape Town Stadium, and has since called for a forensic investigation into alleged collusion and price fixing at the stadium.
In a statement, COSATU says it believes there is a possibility that the City of Cape Town may be guilty of gross incompetence and a lack of diligence in negotiating the contract for the construction of the stadium.
The Union further states that the increase in building costs of the stadium do not correlate with the inflation rate.
Spokesperson Tony Ehrenreich says this escalation in prices should have raised questions with the most inexperienced accountant.
“We believe the investigation should go as far back as the time when Helen Zille was Mayor, because we think there is a lot of untoward conduct that will be revealed by this investigation and that could serve as the basis for further charges,” says Ehrenreich.
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