Friday, June 25, 2010

Episode 12: Patrick Bond Interview Part 3

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Patrick Bond is a political economist with longstanding research interests and NGO work in urban communities and with global justice movements in several countries. He teaches political economy and eco-social policy at SDS, directs the Centre for Civil Society and is involved in research on economic justice, energy and water.

Thursday, June 24, 2010

Episode 11: Patrick Bond Interview, part 2

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Patrick Bond is a political economist with longstanding research interests and NGO work in urban communities and with global justice movements in several countries. He teaches political economy and eco-social policy at SDS, directs the Centre for Civil Society and is involved in research on economic justice, energy and water. IN this episode Patrick Bond talks about South Africa's international debt partially due to the building of the new airport and new rapid transit system and the surrendering of their police to FIFA.

Wednesday, June 23, 2010

Episode 10: Patrick Bond Interview, part 1

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Patrick Bond is a political economist with longstanding research interests and NGO work in urban communities and with global justice movements in several countries. He teaches political economy and eco-social policy at SDS, directs the Centre for Civil Society and is involved in research on economic justice, energy and water. In this episode he talks about the new stadia built for the world cup.

Tuesday, June 22, 2010

Episode 9: FIFA to rake in Billions

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FIFA to rake in billions
By Natasha Marrian | JOHANNESBURG, SOUTH AFRICA - Jun 18 2010 16:32

World football governing body FIFA expects its provisional income for the 2010 World Cup to be about $3,2-billion (about R24-billion), a spokesperson said on Friday.

The provisional figure was given in reply to a question at a media briefing at Soccer City in Johannesburg.

Spokesperson Nicolas Maingot said the World Cup was the main source of income for FIFA, and its revenue from this World Cup would tide it over for the next four years.

He added that 75% of its revenue would be invested into football development.

The estimate comes after it was reported that South Africa, which spent about R63-billion on hosting the event, has granted FIFA a number of tax concessions.


A Sunday paper reported that the world soccer body would cause the country to lose "tens or possibly hundreds of millions of rands in potential revenue".

It reported that the South African Revenue Service had been forced to agree to a "tax bubble" around FIFA sites, which would exempt the soccer federation from paying value-added tax, income tax and customs duties.

South Africa reportedly gave FIFA guarantees, including a supportive financial environment by waiving customs duties, taxes and levies on the import and export of goods belonging to the FIFA delegation, its commercial affiliates, broadcast rights holders, media and spectators, and the unrestricted import and export of all foreign currencies into and from South Africa.

The guarantees also included ownership of all media, marketing and intellectual property and that FIFA cannot be sued for claims arising from the staging of the tournament.

Meanwhile, local organising committee (LOC) spokesperson Rich Mkhondo would not be drawn on what the extra cost of deploying police officers at various stadiums would be.

This was after security guards at various stadiums downed tools over wages.

He refused to be drawn on the security debacle facing the World Cup stadiums across the country.

"There is a dispute between parties. Once we get involved in a public debate, the issues get escalated," Mkhondo said.

"We are trying to resolve all these issues ... we are not going to do that publicly."

Five World Cup stadiums have been hit by industrial action since the commencement of the tournament last Friday.

Initially the strike involved only one service provider, Stallion security. However, guards from the Fidelity Security Company also
entered the fray on Thursday.

"In our agenda there are no security issues," Mkhondo said.

This after the Mail & Guardian on Friday reported that police were investigating claims that sabotage by rival security companies was at the root of the industrial action.

The Mail & Guardian said it established that the government would have to foot a bill exceeding R100-million to pay the police officers. This expense was "supposedly" covered by FIFA and the local organising committee, the report said.

Monday, June 21, 2010

Episode 8: FIFA's great South African rip-off

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City Press

Fifa's great SA rip-off

by Julian Rademeyer, Chandre Prince and Anna-Maria Lombard

For the next five weeks get used to Sepp Blatter being your president and Jacob Zuma sitting on the bench as a bit-player whose government is legally bound to perform the international football federation’s every bidding.

Fifa’s grip on South Africa was cemented with 17 key guarantees the government had to agree to in order to host the world’s biggest sporting event.

A senior government official said: “Fifa are a bunch of thugs. Not even the UN expects you to sign away your tax base. These mafiosos do.”

The South African Revenue Service (Sars) has been forced to accede to an extraordinary “tax ­bubble” around “Fifa-designated sites” which ­exempts Fifa, its subsidiaries and foreign football ­associations from paying income tax, customs ­duties and value-added tax (VAT).

As a consequence South Africa, which has already spent R63 billion, will stand to lose tens or possibly hundreds of millions of rand in potential revenue.


According to a document compiled by Sars, by the end of April R613 million worth of goods had been imported into South Africa for the tournament. Rebates of R118 million were paid out on those imports in line with special tax measures for the World Cup.

The National Treasury says it is unable to provide estimates of the amount of foreign currency brought into and taken out of SA, but said one of the guarantees was “unrestricted import and export”.

Some of Fifa’s commercial affiliates, licensees, host broadcasters, broadcast rights agencies, ­merchandise partners and service providers will not pay taxes on the profits they make during the World Cup. But VAT will be paid on ticket sales and foreign-based soccer players will be taxed on income they receive for playing in the tournament.

Hospital beds, intensive care units and ambulances have been reserved for Fifa and its foreign visitors.

More than R700 million has been spent readying emergency medical services and numerous state-of-the-art medical centres, ambulances and rescue vehicles which have been kept under lock and key for exclusive use during the 30-day tournament.

Safa has also had to provide Fifa with two private jets, two limousines, 300 cars, half a dozen buses and “chauffeurs who speak fluent English and are thoroughly familiar with the area”.

Fifa has hit paydirt. The money is rolling into its Swiss bank accounts and Fifa secretary-general ­Jerome Valcke boasted this week that “we have increased our income by 50% since 2006 in Germany to 2010 in South Africa”.

Fifa – a registered “not-for-profit” organisation – has banked a record R25 billion in media and marketing revenues. In March, the Swiss parliament upheld Fifa’s tax-free status in Switzerland.

The World Cup is expected to contribute an additional 0.5% to the country’s gross ­domestic product.

But Dr Udesh Pillay, the executive director of the Human Sciences Research Council’s Centre for Service Delivery, was recently quoted as saying that the country’s expenditure on the World Cup accounts for 6.4% of the 2010/11 GDP.

Sars spokesperson Adrian Lackay said: “From the perspective of what we spent as a country and from what the country stands to make in terms of revenue and profits it is almost ­negligible.

“Our approach to the World Cup has been that it was never going to be a revenue-raising exercise.

“Certainly it would be wrong to view the World Cup as a significant contributor in itself.

“The concessions we had to give to Fifa are simply too demanding and overwhelming for us to have material monetary benefits.”