World Cup purchasing irregularities exposed – Download Report
The transparency of purchasing procedures for the FIFA World Cup has once again come under scrutiny. South Africa’s Institute for Sec urity Studies has published its concerns over stadia building and bidding practices in ‘Pla yer and Referee: Conflicting Interests and the 2010 FIFA World Cup’.
The report discusses the lack of transparency and accountability in the mega-event’s decision-making and pays particular attention to the tendering practices employed and the effectiveness of South Africa’s existing regulatory framework.
The report explores irregularities surrounding the contracts for Soccer City and introduces evidence of how City of Johannesburg has effectively ceded the profits it will earn from the World Cup to a little-known company whose ‘empowerment status’ is under question.
Furthermore, it examines controversy behind Mthatha’s stadium and allegations of bribery; accusations of favouritism around the contract for the upgrade of the Absa Stadium; how Cape Town came to build Green Point Stadium, despite FIFA’s inspection committee finding that Cape Town had other suitable existing options; and whether the proposed benefits of the new Moses Mabhida stadium are actually intended for construction firms, empowerment regulars and the political elite.
The report provides fascinating material alluding to irregularities in the allocation of advertising and branding contracts by the Eastern Cape Tourism Board.
Interestingly, it highlights the disproportionate power and leverage FIFA wields over host nations and their governments, allegedly manipulating deals and profits in their favour. It also documents potential conflict of interest situations regarding how FIFA awards its lucrative contracts for the World Cup, raising important questions about the lack of scrutiny and transparency of FIFA’s contracts.
This topic will be in the spotlight at the upcoming 2nd Public Sector Supply Chain Summit.