New investments hope to revive Caledonian Stadium
The metro says the probe launched into financial mismanagement last year is still ongoing.
After multiple failed budgets, refurbishment plans and promises, the Tshwane metro is hopeful that its pending leasing agreement with concessionaire RainProp will finally revive the Caledonian Stadium.
Earlier this month, the Section 79 Committee responsible for Community and Social Development conducted site visits to the Caledonian and Refilwe stadiums to monitor ongoing developments and progress at both facilities.
Section 79 Chairperson, Councillor Rebecca Monchusi, said the proposed short-term lease agreement with the private entity would bring the municipality R150 000 a month in rent for the next three years.
“Through the Group Property Department, the city is planning a short-term commercial agreement with RainProp, a private entity, to lease Caledonian Stadium for three years for a project they are working on with the Department of Trade and Industry (DTI).
“Under this agreement, RainProp will revamp and upgrade the facility’s services, while the city expects to collect R150 000 per month in revenue,” she said.
Monchusi says these agreements are subject to the city manager’s approval and do not need to be passed through Council.
She also says that the committee will closely monitor these developments to ensure the projects align with the city’s plans, policies and benefits of the residents.
“The city’s long-term vision for Caledonian Stadium involves preserving its recreational heritage identity while integrating commercialisation to generate revenue and promote community development.”
Monchusi said notable endeavours underway at Caledonian Stadium include a forensic investigation into developments at the stadium since 2021.
In March last year, it was announced that the multimillion rand projects to construct both Refilwe and Caledonian stadiums would undergo a forensic probe following allegations of corruption and misuse of public funds at the facilities.
Speaking to Rekord, Tshwane spokesperson, Lindela Mashigo, confirmed that the probe is currently ongoing and that its completion rests on the outcome of its engagements with private investors.
“A formal short-term lease agreement will be entered into with Rainprop, which awaits city manager’s approval, and the conditions of the contract will ensure compliance.
“Rainprop was appointed by DTI as contractors, and the site is only used as a site camp for activities across the road at DTI. The city will invite private investors to present proposals for commercial activities, provided the sporting facility is preserved and available to the local community.
“The stadium is going to be commercialised, and the completion thereof will depend on the development proposal from prospective investors,” Mashigo said.
In 2017, former mayor Solly Msimanga announced that the metro budgeted R67-million to upgrade the stadium within three years, though the project remains unfinished.
Section 79 member and Ward 1 councillor, Leon Kruyshaar, who was in attendance during the oversight, described the stadium as no longer a stadium, but ‘the Caledonian ruins’.
“This was a fully-functional home to the Arcadia Shepherds Football Club. In 2021/22, we handed it over to the club, and there was a pitch, there was a grandstand where people could sit, yes, in a bit of decay, but not that much.
“With a few million, we could have fixed it up, and with R18-million, restored it to its former glory. They decided to break it down, and this is what we got for R18-million. They allocated R94-million to this stadium, and today, I’m very sad to see what I’m seeing,” Kruyshaar said.
Mologadi a Nape Business Enterprises, the contractor previously assigned to Caledonian and Refliwe, alleges that persistent legal disputes with the metro delayed their progress.
Director Mologadi Baloyi and general manager, Kamogelo Baloyi, say the municipality did not have the funds or the necessary requirements to complete the Caledonian stadium throughout the years of dealing with them.
They were called in April 2021 to launch the project. In August that year when the site was handed over, they did demolition, removed the roof, worked on the grandstand seating and removed 15 000 cubic metres of defective soil.
From June 2021 to 2022, their budget was readjusted due to financial constraints of the city. In 2022 and 2023, they claim to have received slow payments, which resulted in them having to stop work. In September 2023, they stopped all work at the Caledonian, and in February of this year, they received a termination letter.
“That new company can come in and do whatever, we’re not going to stop them, but at the end of the day, the legal matters with us must be finalised. They are talking about a forensic investigation. For the past two years, no investigators have contacted us, how is that possible?” they asked.
Mologadi a Nape Business Enterprises claim they haven’t been paid back their retention fee, that officials have misrepresented the amounts that they’ve claimed, that they received a termination letter during arbitration processes, and that the city retained the same officials responsible for fallouts.
The company has been working with the metro on various projects since 2012 and was terminated from the Caledonian project at 20% completion and from the Refilwe project at 95%.
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@leonkruyshaar13 Caledonian Stadium Reduced to Rubble, Questions of Accountability R18 Million Later Wasteful Expenditure ? #Tshwane #NewsNexusOfficial #fyi #soccer #servicedelivery @NewsNexusOfficial @Democratic Alliance
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