Parliament's tourism committee calls on Ramaphosa to halt Tottenham Hotspur sponsorship deal

The portfolio committee on tourism has called on President Cyril Ramaphosa and finance minister Enoch Godongwana to halt the proposed R1bn sponsorship deal between SA Tourism and British soccer team Tottenham Hotspur.

In a report published by parliament on Thursday, the committee, to which SA Tourism and the department of tourism account, said it was also seeking “urgent interventions” by the National Assembly to stop the deal and tackle governance challenges at SA Tourism.

“Having considered the pertinent issues to the Tottenham Hotspur sponsorship deal and instability at SA Tourism, the committee recommends ... the minister of finance and the president of the country should place the proposed deal between SA Tourism and the Tottenham Hotspur Football Club on hold as the committee considers it is not in the best interest of the tourism industry and the country.”

It has recommended that the money earmarked for the project be “reprioritised” to tourism infrastructure projects “which are dilapidated or other pressing needs of the tourism sector”.

“In justifying the sponsorship, the entity argued it is a strategic marketing investment and cited similar investments by other destination management organisations, such as Rwanda, to increase international arrivals to their respective countries.

“The committee held a different view and is of the opinion that the proposed deal will not benefit tourism and the funds can be better utilised in other aspects of tourism marketing initiatives,” reads the report, which is awaiting adoption by the National Assembly.

“In addition, the committee is concerned about the R31.3m ‘facilitation fee’ to be paid to an agency in which the resigned acting chief financial officer has a conflict of interest.”

It said the amount was due by March 31 to the facilitating agency as an upfront payment.

But SA Tourism acting CEO Themba Khumalo was adamant that no agencies or third parties were involved.

In a heated meeting with SA Tourism on February 7, committee members instructed it to cancel the deal but in media reports, days later, bosses indicated they were forging ahead until stopped by Ramaphosa or Godongwana.

The committee has also called for the immediate removal of Thozamile Botha as SA Tourism board chair, saying he was not duly appointed by tourism minister Lindiwe Sisulu on February 4.

Botha’s appointment, with new members Gopal Reddy, Boy Manqoba Ngubo and Maudline Mabi, followed the resignations of Enver Duminy, Ravi Nadasen and Rosemary Anderson days after the controversial deal was exposed in the media.

The committee wants an investigation into their resignations, including the process followed in appointing their replacements earlier this month, amid claims that SA Tourism has experienced “a deluge of institutional instability incidences” at board and executive management level over the past year.

SA Tourism has had three board chairs since October 2022. At executive leadership level, it has an acting CEO and its interim CFO Johan van der Walt resigned last week while facing questions of a possible conflict of interest in the sponsorship deal. An acting CFO has been appointed.

Sisulu denied claims that the appointment of new SA Tourism board members was unlawful, saying it was done within provisions of the Tourism Act.

Her spokesperson Steve Motale said the appointments were made after extensive legal opinion.

Section 16(2) of the act states that the minister may appoint a qualified person to fill a vacancy for an “unexpired portion of the period” if, for any reason, the office of a member of the board becomes vacant.

“The ministry is of the view that the appointment of replacement SA Tourism Board members was above board and lawful,” Motale said.

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