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Tourism minister Patricia de Lille has advised the Tourism board to halt the R900 million sponsorship deal with Tottenham Hotspur. Image via Twitter/@Tourism_gov_za

BREAKING: De Lille advises tourism board to halt Hotspur deal

Tourism minister Patricia de Lille has advised the Tourism board to halt the R900 million sponsorship deal with Tottenham Hotspur. 

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Tourism minister Patricia de Lille has advised the Tourism board to halt the R900 million sponsorship deal with Tottenham Hotspur. Image via Twitter/@Tourism_gov_za

Newly appointed tourism minister Patricia de Lille has advised the South African Tourism board to halt all processes regarding the R900 million sponsorship deal with English football club Tottenham Hotspur. 

She said the deal was in contravention of section 27 of the constitution, section 53 of the Public Finance Management Act.

De Lille also said the deal was not budgeted for.

ALSO READ: SA Tourism to sponsor Tottenham Hotspur – is it a good idea?

“After my appointment, I immediately sought and obtained legal advice regarding the Tottenham matter. In terms of that advice, there are three reasons why the Tottenham sponsorship is unlawful and invalid,” said De Lille.

THREE REASONS ARE:

  1. That the sponsorship is in fact a procurement event which does not comply with Section 217 of the Constitution, the Treasury instructions issued in terms of the Public Finance Management Act 1 of 1999 (PFMA) and SA Tourism’s own Supply Chain Management Policy. It appears that the sponsorship is a service which was proposed to be acquired by procurement through “sole source”. Sole source procurement is however only allowed where there is no competition in the market and only one supplier is able to provide the goods or services, which does not appear to be the case here.
  2. That the sponsorship has not been budgeted for as required by section 53 of the PFMA and that the expenditure thereon would be irregular or unauthorised within the meaning of those terms in the PFMA.
  3. That the deal amounts to a “significant partnership transaction” which required my prior approval in terms of Section 54 (2) of the PFMA.

ALSO READ: ‘Out of order’: Sisulu reprimanded over Tottenham Hotspur deal

Late last year, South African Tourism (SA Tourism) was reportedly planning to spend US$52 million (about R900 million) to sponsor UK football team Tottenham Hotspur over three years.

The proposal gives the country branding on the club’s kit, backdrop branding in interviews, advertising on match days, partnership status, local training camps and access to tickets and stadium hospitality.

However, the deal received negative reaction from South Africans.

ALSO READ: Sho’t left to SA? Tottenham Hotspur stars vacation here instead…

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