By Thabo Makwakwa 
Jun 29, 2021
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DURBAN – THE Inkosi Albert Luthuli International Convention Centre (ICC) has run out of funds and is now operating on cash reserves earmarked for capital expenditure. Additionally, R165 million in revenue was lost due to the Covid-19 pandemic and now it needs R30m to remain afloat.
ICC chief executive Lindiwe Rakharebe disclosed this information during a virtual sitting of the eThekwini Municipality’s Executive Committee (Exco) on Monday.
She said the country’s move to level 4 of the lockdown would further harm the operations of the entity as no physical major events were allowed during this period.
Rakharebe said they expected to financially recover later this year if things returned to normal.
“We are deeply affected by every lockdown announcement as we find ourselves in a position where we are not doing anything. We expect to start seeing improvements when the rest of the population has been vaccinated.”
Rakharebe said that while there were challenges, no jobs had been lost as a result of the pandemic, and the entity had also received a clean audit – an indication that staff were doing a good job.
She said they were in talks with Discovery Health, which had requested to use the ICC venue for six months as a Covid-19 vaccination centre.
Mayor Mxolisi Kaunda commended the ICC for being able to protect people’s jobs and committed the city to assisting the centre.
The Exco authorised the city’s proposal to grant R15m in funding to the entity from the 2021/22 budget; an additional R10m would be considered during the 2021/22 midterm, which would depend on whether any savings could be directed to the entity.
It was also agreed that R5m would be provided from the municipality’s payment which was received from Effingham Development JV.
Narendh Ganesh, Duffs Road Civic Association chairperson, said the ICC at one stage was an economic success and together with uShaka Marine World achieved international recognition. “The ICC administration needs to embark on austerity measures to trim all the fat so that it becomes lean and efficient. The pandemic merely reduced income in the last 15 months and there has been very little capital expenditure on the enterprise.
“If it becomes necessary to reduce labour as is customary in times of economic depression, then it has to be done. The ANC-led municipality seems to be totally inept at managing frugally its capital resources. To further burden an already overburdened ratepayer is a travesty. How many other bail-outs are we expected to endure?”
Robin Lalla, from the Bakerville Ratepayers Association, said people paid rates not to fund corruption “because what is happening is clear corruption”.
• R2 million has also been set aside to support struggling artists who would receive it through promotions and marketing of Durban Tourism.
The City said that this was not a grant but a public-private partnership initiative which would help create jobs and assist to promote the city.
DA caucus leader, councillor Nicole Graham, argued that this had proven to be a fruitless exercise as it appeared to be ANC programmes that used artists, who wore ANC branded T-shirts to promote the party.
Kaunda said it was important for the city to assist artists during difficult times as this was in line with the ANC’s job creation programme.
“It must be recorded that the DA refused to support this programme, which is about social cohesion and giving back to assist artists who continuously promote Durban through their music videos which are shot in areas of tourism within the city. These are the types of benefits we receive from them, as they help market our beautiful city.”
Daily News