May 18, (THEWILL) – Three South African construction firms have agreed to pay the city of Cape Town about $6 million after being accused of misrepresenting the cost of building a stadium for the 2010 World Cup.
WBHO, Stefanutti Stocks and Aveng Africa, will each pay the City of Cape Town $1.9 million over the next three years in an out-of-court settlement. In addition, Mayor Gordon Hill Lewis of Cape Town said the corporations would contribute a minimum of $2.6 million to solar energy projects.
During the construction of Greenpoint Stadium, which began in 2007, the companies were accused of conspiring to inflate prices. The authorities will be relieved to see the court battle come to a close, since the 62,000-seater stadium has been a thorn in their side for many years.
The stadium, which was originally predicted to cost $370 million, ended up costing $600 million.
It has never made a profit, and Cape Town ratepayers subsidise its operations to the tune of more than $4 million per year. It became known as the DHL Stadium recently after it was taken up by the local rugby team and renamed.
Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
