Boxing promoter Teris Nthuthu has denied using his political clout to secure R1.5-million from Amathole district municipality (ADM) for an IBO world title fight in East London last October.It recently emerged that the cash-strapped ADM had spent R1.5-million on the boxing tournament that took place at the Orient Theatre.
Acting ADM spokeswoman Noni Vuso confirmed payment to TTT, saying it had been for an “IBO World Championship”.
“TTT promotions was paid R1.5-million in October 2015,” said Vuso.
Meanwhile, Madikane said there was nothing wrong with a promotions company approaching a municipality for funding.
“Every day promotions companies approach municipalities for funding and there’s nothing wrong for my company to do that. I am not a politician, but a promoter,” she said.
Questions have been asked why ADM spent the money in the first place as a source said the municipality was “leaking money”.
“Those who are close to officials, politically or otherwise, are benefiting. This is just the tip of the iceberg. Some people bought houses for cash, money leaks here,” said the source.
Buffalo City Metro spokesman Keith Ngesi said Ntuthu’s Rumble Africa promotions had requested R9-million from the metro last year towards the tournament.
“This was more than our boxing budget,” said Ngesi.
The Dispatch recently reported on how ADM paid R2-million to Nkonkobe ANC ward councillor Nanziwe Rulashe for the Miss Amathole Heritage event held in September. Contestants later complained they never received their prizes as promised.
The winner of the event received a vehicle, not knowing she had to return it later this year as it belongs to Rulashe. With the money from ADM, Rulashe also bought herself a Kia Sportage worth R190000 cash.
The Dispatch source further said ADM last year went to ask for a loan from a bank to pay salaries, among other things.
“Millions are released to individuals while ADM is struggling financially.”
However, ADM said the loan application was not for salaries.
“We did explore a potential loan with a financial institution primarily as an intervention to get our sanitation programme moving again while we waited for DBSA funding … however, it became apparent that such a loan would not be a viable option,” said Vuso.
The Saturday Dispatch has seen a copy of a report dated August 2015 written by the engineering services director at ADM in which it is mentioned there were cash-flow challenges in the municiaplity.
“Applications were made to the relevant provincial and national departments for additional Municipal Insfrastructure Grant funding but without success,” states information in the report. — mesuliz@dispatch.co.za / bonganif@dispatch.co.za
Broke district pays R1.5m for a fight
It recently emerged that the cash-strapped ADM had spent R1.5-million on the boxing tournament that took place at the Orient Theatre.
Acting ADM spokeswoman Noni Vuso confirmed payment to TTT, saying it had been for an “IBO World Championship”.
“TTT promotions was paid R1.5-million in October 2015,” said Vuso.
Meanwhile, Madikane said there was nothing wrong with a promotions company approaching a municipality for funding.
“Every day promotions companies approach municipalities for funding and there’s nothing wrong for my company to do that. I am not a politician, but a promoter,” she said.
Questions have been asked why ADM spent the money in the first place as a source said the municipality was “leaking money”.
“Those who are close to officials, politically or otherwise, are benefiting. This is just the tip of the iceberg. Some people bought houses for cash, money leaks here,” said the source.
Buffalo City Metro spokesman Keith Ngesi said Ntuthu’s Rumble Africa promotions had requested R9-million from the metro last year towards the tournament.
“This was more than our boxing budget,” said Ngesi.
The Dispatch recently reported on how ADM paid R2-million to Nkonkobe ANC ward councillor Nanziwe Rulashe for the Miss Amathole Heritage event held in September. Contestants later complained they never received their prizes as promised.
The winner of the event received a vehicle, not knowing she had to return it later this year as it belongs to Rulashe. With the money from ADM, Rulashe also bought herself a Kia Sportage worth R190000 cash.
The Dispatch source further said ADM last year went to ask for a loan from a bank to pay salaries, among other things.
“Millions are released to individuals while ADM is struggling financially.”
However, ADM said the loan application was not for salaries.
“We did explore a potential loan with a financial institution primarily as an intervention to get our sanitation programme moving again while we waited for DBSA funding … however, it became apparent that such a loan would not be a viable option,” said Vuso.
The Saturday Dispatch has seen a copy of a report dated August 2015 written by the engineering services director at ADM in which it is mentioned there were cash-flow challenges in the municiaplity.
“Applications were made to the relevant provincial and national departments for additional Municipal Insfrastructure Grant funding but without success,” states information in the report. — mesuliz@dispatch.co.za / bonganif@dispatch.co.za
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