Gauteng's billion-rand motorsport blunder

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Gauteng wasted almost a billion rand chasing after its motorsport dreams.

JOHANNESBURG - Gauteng wasted almost a billion rand chasing after its motorsport dreams, which crashed and burned in spectacular fashion this week.

The province might also have lost another R9 billion if the contracts, entered into on Paul Mashatile's watch as economic development MEC, had come to fruition.

Current economic affairs MEC Firoz Cachalia has "amicably terminated" the province's costly multi-year contracts with A1GP and BMW-Sauber, and begun liquidation of the controversial Gauteng Motorsport Company (GMSC).

But Gauteng still has to pay over R115 million to FGSport to settle the SBK World Superbike Championship and Superstars, or risk a lawsuit under international law.

The province spent R285 million on motorsport in the last financial year and will spend another R141 million this year, including the settlements. It previously spent over R254 million on the A1GP, R30 million on the F1 Roadshow, R65 million for a logo on the BMW- Sauber race car and R2,5 million on a feasibility study for an F1 racetrack.

Cachalia earlier labelled calls for a forensic probe a political "fishing expedition".

Cachalia has now, however, instituted a forensic probe.

Democratic Alliance anti-corruption spokesman for Gauteng, Jack Bloom, said the GMSC was "born in sin" and illegally constituted to flout exchange control regulations.

He added that Mashatile should "carry the can" for what happened and questioned why Cachalia had not co-operated with the police.

"There should be prosecutions, not simply dismissals," he said.

The Citizen last year already put questions to Mashatile over his involvement in the deals, but has not had any feedback.

*This article was first published by the Citizen and is published with its permission.