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South Africa's Tourism Minister Patricia de Lille, who was recently appointed in a cabinet reshuffle, has described the deal as "unlawful and invalid" following legal advice.
South African Tourism's three-year shirt sponsorship deal with Premier League club Tottenham Hotspur is in danger of being scrapped, according to the country's tourism minister.
Patricia de Lille, who was recently appointed in a cabinet reshuffle, has described the deal as "unlawful and invalid" following legal advice.
The deal, which is worth approximately $51m, was provisionally agreed by SA Tourism and Tottenham, and was due to start in the 2023/24 season and run until the end of the 2026-27 season.
At a media briefing in Pretoria, De Lille urged caution when it came to public funds, saying "money must be used wisely and prudently as we are instructed to look after public funds."
She also highlighted that the sponsorship contravenes the country's Public Finance Management Act (PFMA) and SA Tourism's own supply chain management policy.
"It appears the sponsorship is a service proposed to be acquired by procurement through 'sole source' which is only allowed where there is no competition in the market to provide the goods or services, which does not appear to be the case here," said De Lille.
De Lille has written a letter to the chair of SA Tourism, requesting that he respond by March 29, after legal consultations highlighted three reasons why the sponsorship was unlawful and invalid.
Along with the contravention of the PFMA and SA Tourism's own supply chain management policy, the sponsorship had not been budgeted for as required by the PFMA, and a deal of that magnitude required her prior approval.
SA Tourism's board approved the proposed deal subject to consultation with the minister of tourism and minister of finance. De Lille's advice to the board is to halt proceedings around the deal.
Based on an interim response that De Lille received before the media briefing, the minister advised the organization's board "that the proposal may as well be stopped completely".
The proposed deal has caused uproar across the country, with criticism coming from cash-strapped national sports federations and labour unions.
The Daily Maverick website first highlighted the controversial deal on January 31, after obtaining leaked documents from unnamed members of the SA Tourism board. Three members of the board resigned in the days that followed.
De Lille said that the government had to be "much more careful and give careful consideration" in everything it does.
Her stance highlights a move towards greater scrutiny of public funds and more careful consideration of how they are spent.
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