In a stunning about-turn just before the Springbok Test in Gqeberha, the municipality agreed in court on Wednesday that the development agency would manage the Nelson Mandela Bay Stadium for a further 90 days.
The political knock-on was triggered as a result of a recent decision by mayor Babalwa Lobishe to take away the Mandela Bay Development Agency’s (MBDA) mandate to manage the facility, causing widespread confusion and uncertainty.
In a bid to challenge Lobishe’s decision, the agency filed papers late on Tuesday, with the matter heard in the Gqeberha high court on Wednesday.
Lobishe claimed she could take the stadium’s management mandate whenever she wanted, but the municipality did not file any papers.
Judge Denzel Potgieter issued a court order that also barred the municipality and Lobishe from interfering with the day-to-day management of the stadium, with the agency carrying the ball for the next 90 days.
Lobishe must also identify and nominate a representative who will be granted full access to the stadium’s management to ensure a seamless handover.
Both parties agreed not to make any further media statements regarding the matter.
“The parties will each bear their own costs,” the order reads.
When approached, municipal spokesperson Sithembiso Soyaya and MBDA chief executive Anele Qaba declined to comment
Lobishe could not be reached by the time of publication.
The mayor sent shock waves through rugby circles last week when she terminated the agency’s mandate to manage the stadium, just days before Saturday’s match between the Springboks and Italy.
She had written to the MBDA, saying her decision was binding and would take effect immediately.
In response, MBDA board chair Glenda Perumal issued a letter, calling for further discussions with Lobishe.
At a briefing on Monday, Lobishe refused to back down, insisting that the match would go ahead as scheduled without any involvement from the agency.
In her affidavit before the court, Perumal said that at a meeting on Tuesday Lobishe had warned the MBDA not to pursue legal action.
However, Perumal described the immediate withdrawal of the mandate as unreasonable, inappropriate and lacking legal justification.
“The South African Rugby Union (Saru) has communicated its extreme displeasure and concern as to the current situation,” she said.
“Unless the uncertainty is resolved, there is a risk that the Test may have to be cancelled.”
She said Lobishe did not have the authority to withdraw the contract.
“It is correct that the municipality holds all the shares in the MBDA,” she said.
“Nevertheless, the mayor does not appear to have recognised that the MBDA is a separate legal entity, which is entitled, and indeed obliged, to enforce contractual rights.
“The original decision to conclude the service level agreement (SLA) with the MBDA was a decision taken by the council of the municipality.
“Indeed, the conclusion of a further agreement is a matter which will almost certainly have to be referred to the council itself.
“For reasons which are unclear, and despite numerous discussions and meetings, the matter has still not been placed before the council.
“I have already received communication from many sporting and entertainment bodies expressing concern as to the recent developments.
“Without wishing to identify these bodies and entities, it has certainly been made clear to me that the events which have been planned and booked may well now be cancelled.”
The mayor’s decision had also prompted stadium workers to down tools on Wednesday.
Samwu branch secretary Sandiswa Silwane said the removal of the MBDA would effectively mean they were unemployed as they were contracted to the agency.
“As you know, we had already said that should the status of our employment not be resolved by Saturday, we would go on strike during the Springbok game,” she said.
In April, a group led by Samwu disrupted a council meeting when they marched into the chamber demanding an end to the month-to-month contracts.
At the time, MBDA corporate services director Luvuyo Bangazi said the agency could not employ the workers as it was operating under a month-to-month contract with the city.
On Wednesday, acting city manager Ted Pillay met the workers and sent a letter to Qaba confirming that they would be employed full-time.
“As the municipality is funding the costs of the MBDA, including the staff at the stadium, the municipality hereby gives its full support and approval for the MBDA to appoint the staff at the stadium on a full-time basis,” Pillay said.
“Please note that as and when the function of operating the stadium reverts to the municipality, the assets, liabilities and the staff at the stadium will be transferred to the municipality.”
In the affidavit, Perumal had alluded to the situation for stadium employees as being untenable as they were being employed on a month-to-month basis.
“[The MBDA] employs some 43 people to effect the management and operations of the stadium.”
She said contracts with service providers were also with the MBDA.
Perumal said the agency’s continued management of the stadium beyond the three-year term indicated that the SLA between the two remained in effect.
She said the agreement made a provision for either party to end the mandate at any point, provided 90 days’ written notice was given, regardless of the initial three-year term set out elsewhere in the contract.
“Notwithstanding the effluxion of the initial three years, the MBDA has continued to operate and manage the stadium to the date hereof.
“I furthermore respectfully submit that having regard to the manner in which both the MBDA and the municipality have conducted themselves with the management and operation of the stadium, the inescapable inference has arisen that both parties intended that the SLA would be revived on the same terms as existed previously, subject only to a further SLA to be concluded in due course or a lawful termination of the relocation agreement.”
The MBDA was appointed to manage the stadium in 2016.
Its initial mandate from the municipality began on January 1 2017, for three years, followed by an extension that lasted until June 2023.
Since then, the agency has continued to operate on a month-to-month basis.
In an email on Monday, Saru’s head of legal and compliance, Chantal du Pisani, requested an urgent meeting with the MBDA and the metro to discuss the development.
Du Pisani requested the meeting to clarify stadium operations, assess risks to the match, ensure safety preparations and secure stakeholder protection.
Later on Monday, Saru released a statement after meeting the municipality, with a spokesperson saying preparations were proceeding as planned.
The Herald
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