Gauteng’s plans to host a Formula 1 race have been cancelled because they did not meet the new provincial government’s priorities.
And the remaining motorsports contracts - for the A1 Grand Prix, the Superbike World Championship and the Super Stars series - will be reviewed and possibly cancelled.
He said the Department of Economic Development had signed the contracts on the understanding that the revenue generated by the events would contribute to an 8 percent growth rate in the province, but that the new administration did not believe that economic growth necessarily contributed to job creation.
He admitted that mistakes had been made, particularly the corporatisation of the Gauteng Motorsports Company (GMSC) without treasury approval; the agreement to enter into a bank guarantee for the payment of rights fees; and non-compliance with exchange control provisions.
Cachalia said he saw no reason to take disciplinary action against anyone from the department, but would instead be working with them “to correct their mistakes”.
Cachalia said he wanted specific proposals about how the contracts would benefit the majority of the province’s population.
“No motorsports project is justifiable that doesn’t meet the needs of the majority.” Independent Online
The slight irregularities in contracts entered into by the Gauteng Motorsport Company were not enough to warrant a forensic probe, economic development MEC Firoz Cachalia said.
“Without the facts before me to suggest these contracts are tainted by corrupt conduct… I will not go on a fishing expedition.” he said at a media briefing in Johannesburg’s inner city.
This followed a Democratic Alliance briefing today in which the party’s spokesman on corruption Jack Bloom highlighted a number of “irregularities” in deals made by the Gauteng Motorsport Company.
Cachalia said if the DA placed facts before him which indicated corruption, he would act.
He conceded the department had not complied with Section 51.1.G of the Public Financial Management Act (PFMA) in setting up the Gauteng Motorsport Company as it had not sought the necessary approval from the Treasury on time.
“Permission should have been sought beforehand… compliance with the PFMA was not adequate.” The Times
| 
|