Parliamentary question: DoT: World Cup tickets

1977

QUESTION NO 1558

DATE REPLY SUBMITTED: TUESDAY, 06 JULY 2010

DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: FRIDAY, 21 MAY 2010 (INTERNAL QUESTION PAPER: NO 14 – 2010)

Mr D C Ross (DA) asked the Minister of Transport:

Whether his department and/or any of its entities have purchased any tickets for (a) the 2010 Fifa World Cup Soccer tournament, (b) the Cape Town International Jazz Festival and (c) any other entertainment event in the (i) 2009-10 financial year and (ii) during the period 1 April 2010 up to the latest specified date for which information is available; if not, what has been the position in each case; if so, in each case, (aa) what is or has been the date of the event, (bb)(i) how many tickets have been purchased and (ii) why, (cc) what has been the total cost of the tickets and (dd)(i) to whom has each of these tickets been allocated and (ii) on what was the decision for the allocation of these tickets based?

NW1817E

REPLY:

The Minister of Transport:

Department of Transport (DoT)

The Department of Transport has not purchased any tickets for any entertainment events. There was no available budget allocation for such an exercise.

Airports Company South Africa (ACSA)
(a)ACSA has, as part of its stakeholder management mandate (relationship building), procured 170 hospitality suite tickets for the 2010 Soccer World Cup, spread across 6 games, including the opening and final games, at a total cost of R4.67 million.
(b)For the Cape Town International Jazz Festival, ACSA purchased a hospitality package of 50 tickets, extended to 25 of the mostly Cape Town based stakeholders and their partners, at a cost of R300 000,00.

(c)(i)

In the 2009-10 financial year, ACSA purchased 2300 FIFA Confederations Cup open tickets for all ACSA staff, as well as 130 hospitality tickets for stakeholders at a total cost of R1.5 million.
(ii)

From 1 April 2010, ACSA purchased 25 hospitality tickets for the Vodacom Super 14 Challenge for ACSA stakeholders at a total cost of R54 000,00; 10 tickets for the semi final scheduled for 22 May 2010 at Orlando Stadium in Soweto, and 15 for the final scheduled for 29 May 2010 at the same venue.

The tickets were made available to ACSA’s strategic partners and stakeholders in line with the business’s relationship building programme. The allocation of these tickets is based on the strategic importance of these partners, and the key messages that ACSA wanted to communicate at each of the occasions.

Air Traffic & Navigation Services (ATNS)

ATNS is doing business to the amount R71 million per annum in the continent providing services such as training, satellite communication, billing, survey and aeronautical consultancy. ATNS’ vision is “to be the preferred supplier of air traffic, navigation, training and associated services to the African continent and surrounding regions”. As part of the ATNS strategy and programme of action to realize our vision, ATNS embarks, amongst others, on business development activities and stakeholder relationship management initiatives. The 2010 Soccer World Cup is one of those initiatives. Details below of tickets bought the Soccer World Cup:

Cross-Border Road Transport Agency Limited (C-BRTA)

No tickets were purchased for any of the above-mentioned events.

South African Civil Aviation Authority (SACAA)
(a) No tickets have been or will be purchased for the 2010 FIFA World Cup.
(b) No tickets were purchased for the Cape Town Jazz Festival.
(c) Tickets were purchased for the FIFA Confederations Cup that was held in June 2009
70 tickets were purchased for the Confederations Cup.

The National Department of Transport encouraged entities within Transport to support the Confederations Cup by purchasing tickets for their clients and/or staff.

The tickets cost R36 750,00.

The tickets were allocated to SACAA staff members.

The Chief Executive Officer (now Director of Civil Aviation decided that the tickets be allocated to the top performers per department in the organisation based on the Performance Management System results for the previous Financial Year. 35 employees benefited from the tickets. Each of the 35 employees received 2 tickets each.

South African Maritime Safety Authority (SAMSA)
(a)Yes. SAMSA has placed an order for tickets.
(b)No. SAMSA did not purchase tickets for the Cape Town Jazz Festival.
(c)(i) 2009/10 – 2009 FIFA: Confederations Cup Tickets
(ii) April 2010 to date – 2010 FIFA World Cup Tickets
(aa) The 2009 Confederation Cup took place in June 2009.
(bb) (i) 60 tickets were secured for the games
(ii) Staff Motivation (Reward and Recognition Scheme)

SAMSA utilized the tickets as a Staff Motivation and Award Scheme, in line with the Corporate Human Resources Strategy.

BACKGROUND
(SAMSA PARTICIPATION IN CONFEDERATIONS CUP & WORLD CUP)

SAMSA experienced a crisis at the end of the 2007/08 and 2008/09 financial ears and had to reverse adverse audits for the period – the Disclaimer of Opinion and later a Qualified Opinion from the Auditor-General, as well as install a financial accounting system which had collapsed in 2004.  The recovery and turn-around work that followed led to staff members across the whole organization having to work hard and long hours (averaging sustained 18 hour days), over weekends, public holidays and even into overnights, just to go home and refresh and to return to the office to continue with the work. These efforts were fruitful and SAMSA successfully installed an accounting system in record time, reversing a Disclaimer Audit Opinion and delivering an unqualified audit report for the 2008/09 financial year. 

However, to reverse the effects of the stress and strain caused to staff, and responding to the need to motivate staff to sustain that performance, management decided to focus on the varied approaches to staff motivation.  One of the strategies that management decided to employ was to purchase and use the Confederations Cup tournament tickets as a key component of its Staff Motivation and Award Scheme in 2009/2010. Tickets were purchased and given to staff members for outstanding performance and embracing change. SAMSA Executive Committee made the decision to award purchase the tickets for this reason.

SAMSA Mandate (Maritime Safety and Security)

SAMSA as the country’s Maritime Authority is part of the country’s and Department of Transport’s Soccer Tournaments’ delivery capacities and capabilities, focusing primarily on maritime safety, security and the promotion of the country’s maritime interests as part of our core mandate. In both the case of the World Cup and its, precursor tournament – Confederations Cup, termed the mini-FIFA World Cup, SAMSA is engaged as a key Authority responsible for the maritime sector, in line with our mandate.

SAMSA Shareholder Initiative

The shareholder, through the Department of Transport, took the initiative to mobilize the state capacity, calling upon the agencies such as SAMSA to participate in ensuring the success of the Confederations Cup – including the purchasing of tickets. The decision to purchase the Confederation Cup tickets was influenced to no small measure by the need to support that strategic initiative of the shareholder in ensuring the success of the tournament. The following tickets were purchased: (Suites and the grand stands).
(cc) The total costs of the tickets was $25 400.00: (R206 502.00)
2009 Confederation Cup Hospitality Tickets

Nr

Hospitality Series

Quantity

Series Price

Total Price
1

Match 1-South Africa v Iraq :JHB
4
600.00
2400.00
2

Match 4- USA v Italy: PTA
4
500.00
2000.00
3

Match 7- USA v Brazil: PTA
4
500.00
2000.00
4

Match 8- Egypt v Italy: JHB
4
500.00
2000.00
5

Match 10- Spain v SA: Bloemfontein
4
500.00
2000.00
6

Match 13- Semi Final I: Bloemfontein
4
700.00
2800.00
7

Match 14- Semi Final II: JHB
6
700.00
4200.00
8

Match 16- Final : JHB
10
800.00
8000.00

TOTAL USD
25400.00
(dd) (i&ii) Tickets were distributed amongst staff based on performance in key turnaround projects, participation in change management exercises and the management teams. A few were given to stakeholders.

WORLD CUP TICKETS
(aa) The 2010 FIFA WORLD CUP happens from 11 June 2010 and 11 July 2010.
(ii) The tickets were ordered following an EXCO and Board decisions, that given SAMSA’s role in the preparations for and delivery of a successful World Cup Tournament, as well as the entity’s position as a public entity supporting the state’s strategic initiative in ensuring a successful World Cup, SAMSA should participate in these historic games that the country is hosting. It will also be used as part of the Staff Motivation and Award Scheme, as well as a stakeholder engagement tool.
(cc) The total budget and order placed for the 2010 FIFA World Cup Tournament tickets is: $ 291 300.00 (R2 226 988.50) broken down in the table below. The cost is dependent on confirmed available number and type of tickets. The tickets have been purchase in regions with SAMSA Regional and Head Offices to reduce/eliminate costs of travel and accommodation.
2010 FIFA World Cup Tournament

Nr.

Hospitality Series

Quantity

Series Price

Total Price
1

Venue Series Soccer City-Suite
24
17600.00
211200.00
2

Venue Series Cape Town-Suite
4
11250.00
22500.00
3

Venue Series Cape Town- Match 61- FIFA Business Seat
4
3500.00
7000.00
4

Venue Series Durban- Suite
4
12500.00
25000.00
5

Venue Series Port Elizabeth-Suite
4
12800.00
25600.00
36 entries

TOTAL USD
291300.00
(dd) (i&ii) Tickets will be distributed amongst staff based on performance in key turnaround projects, participation in change management exercises and the management teams. Some will be given to key stakeholders with the intention to engage our partners.

South African National Roads Agency Limited (SANRAL)

SANRAL has not purchased any tickets either for the above events.

Passenger Rail Agency of South Africa (PRASA)
(a)The Passenger Rail Agency of South Africa (PRASA) purchased tickets for the 2010 FIFA World Cup™
(b)The Passenger Rail Agency of South Africa Purchased tickets for the Cape Town International Jazz Festival for the 2009/10 Financial Year
(c)No, the Passenger Rail Agency of South Africa has not bought tickets for any other entertainment in the 2009/10 Financial Year or period since 1 April 2010 to date.
(aa) – The 2010 FIFA World Cup™ dates are 11th June to 11th July 2010.

The Cape Town International Jazz festival was on 3rd and 4th April 2010.
(bb) (i) PRASA purchased 4 570 tickets for the 2010 FIFA World Cup™

It was a business decision to acquire tickets for the tournament made in 2009. In fact, PRASA had intended to purchase in excess of 50 000 tickets with plans to link these to the sale of special tickets and seasonal tickets for commuter rail (Metrorail) and long-distance services during the month of June and July 2010. This was vital to raise revenue and to be able to pay for the costs associated with PRASA’s Operational Plan for the tournament. Unfortunately, FIFA could not confirm the number of tickets required by PRASA.
(ii) PRASA is a National Public Passenger Public Transport company, which renders Public Transport services in the Public Interest. PRASA provides public transport services (both Rail and Bus services), and thus provides South Africans mobility and access to Socio -Economic opportunities. This includes transporting South Africans to Work and School every weekday, to fun and recreational activities such as Football matches, Concerts, Church and other faith Gatherings mainly over weekends, and to their holiday destinations by Train and Bus. In the execution of this Mandate, PRASA will identify significant moments and events in the Nations Life, such as the Cape Town Jazz Festival, the 2010 FIFA World Cup, the Annual Easter Zion Christian Church gathering etc. PRASA uses Marketing and Communication instruments to expose South Africans to PRASA Services during these events, such as buying tickets, packaging them with PRASA tickets and selling transport packages to events such as the Jazz festival and the World Cup. PRASA also gives promotional tickets away to loyal customers and potential customers through competitions on radio, at stations and through structures that represent customers and commuters. PRASA also uses the tickets to invite stakeholders in Community structures, Rail Commuter organization, Trade Unions, Politics, Business, Employees etc.
2010 FIFA World Cup™

PRASA is centrally involved to ensure the successful and seamless transportation of people during the 2010 FIFA World Cup™. PRASA was instructed by Government to develop a detailed Operational Plan for the transportation of fans during the 2010 World Cup.

PRASA had set itself the following objectives during the 2010 FIFA World Cup:

Contribute to the success of the tournament

Promote the use of public transport and more specifically, the role of rail in our transport system,

Showcase the services and products being delivered by PRASA

Reward loyal customers and employees (stakeholder Management)

Build the brand of PRASA as a new public entity

PRASA, as an integrated Public Passenger Transport Company, has an official status in the tournament, as a National Supporter, and renders transport services through a Value in Kind (VIK) Agreement entered into with FIFA in June 2009. This means PRASA does not pay FIFA any cash for its National Supporter Status, but renders services to the value of R80 million. In addition, PRASA and its subsidiary, Autopax, have entered into contracts with MATCH on behalf of FIFA and the Local Organising Committee (LOC) for the provision of 410 and 50 buses respectively. This contract will yield revenue income of R174 million for PRASA at the end of the tournament.

PRASA’s operational expenditure was preceded by a massive R14 billion Capital and Infrastructure investment in the system, the key components of which include the following:
1.R1.9 billion investment in the Passenger Rail Service (New Stations, Major Station Upgrades, installing new ICT systems etc);
2.R1.4 billion for the acquisition of a new Bus Fleet for Autopax, PRASA Bus Subsidiary;
3.R7 billion to refurbish 2 000 coaches, 780 of these (65 train sets – costing R3.4 billion) dedicated to serve spectators to and from Matches during the tournament as identified by Government.

PRASA is operating 3 013 Metrorail Train services for Matches, 726 Shosholoza Meyl Trains for Matches, 460 Buses Serving the FIFA family and Clients. In a nutshell, the cost of match tickets by PRASA is an integral part of the entire PRASA spends for the successful transportation of people during the 2010 FIFA World Cup. We are proud that thousands of people and fans are passing through our newly refurbished stations, and are traveling on our upgraded trains and brand new buses since the tournament started on 11 June 2010.

The cost for the World cup tickets was R10.8 Million

The Cost for the Cape Town International Jazz festival tickets was R376 200.00.

The tickets were allocated to the following categories of stakeholders:

Customers

Labour

Business

Community Organisations

Media

Employees of PRASA Group as a whole

Commuter Organisations

Government

Members of Parliament

Provincial Legislators

The tickets are used to promote PRASA services by selling packages and are allocated to stakeholders of PRASA to promote its services, to expose stakeholders to the PRASA business and services and to build goodwill for PRASA amongst its loyal customers and influential stakeholders.

Road Accident Fund (RAF)

The Road Accident Fund only bought tickets for the FIFA Confederations Cup that was held from 14 – 28 June 2009.

A total of 600 tickets were purchased.

The tickets were obtained as part of the stakeholder engagement strategy and following a directive from the Department of Transport for RAF to support this initiative as a contribution towards nations building.

Total cost spent on purchasing these tickets was R1 821 404.75

A list of guests was selected from the RAF key stakeholder list.

Railway Safety Regulator (RSR)

The RSR has not purchased tickets any tickets for the above events.

Road Traffic Management Corporation (RTMC)

The RTMC only bought tickets for the FIFA Confederations Cup that was held in June 2009.

The Confederation Cup was held in South Africa in June 2009. The Corporation purchased and hired private suites at Ellis Park, Loftus Versfeld and Bloemfontein for eleven (11) matches.

The entity purchased 186 tickets for the Confederation Cup.

The Confederation Cup was considered a national event and the RTMC deemed it necessary to contribute towards the success of the event as a precursor to the 2010 FIFA Soccer World Cup. The event was also used as an exposure to the senior personnel within the corporation all whom were expected to play a critical role in ensuring sound traffic management for the 2010 FIFA World Cup.

The total cost of all the tickets (including private suites) was R1, 360, 125.

The tickets were allocated mainly to the senior personnel within the Corporation and to the members of the Board. Other tickets were given to law enforcement officers.

The decision for the allocation was based on the seniority of staff within the corporation and the nature of work performed by the officials.

Ports Regulator



No tickets have ever been bought by the Regulator for the above events.