Cape Town - The City of Cape Town responded to the allegations from Cape Town Grand Prix SA (CTGPSA) over the bidding process for the upcoming Formula E racing tournament set to take place early next year.
The Formula 1 promoter is accusing the City of side-lining its attempt to successfully bid for the upcoming international racing event, saying that it was in utter disbelief at how the City blatantly disregarded a fair and transparent bidding process.
CTGPSA said that alongside eMovement (the promoters of the Cape Town leg of the ABB FIA Formula E World Championship) they were both in the running as bidders to host the race in Cape Town.
In a statement, CTGPSA said it had tried to engage with the City regarding the issue but had noticed the City’s unwillingness to support previously disadvantaged small, medium, and micro enterprises (“Cape Town's Formula E bidding process called into question”).
Chief executive Igshaan Amlay said: “We have built this bid on honesty and integrity and our vision is to leave a lasting legacy. The stand we are taking is not only for us but for all who come after us, perhaps even finding themselves in a similar boat right now. Our resolve is strengthened to bring Formula One Grand Prix™ to a street circuit in the Green Point Sport Tourism Precinct in Cape Town.”
The full statement from CTGPSA can be read here.
In response to the allegations, the City said it is providing financial support for the Cape Town E-Prix, based on the fact that it has been endorsed by the rights holder, Formula E Holdings.
The City said CTGPSA was never precluded from making an application for support but was instead asked to submit its application, and even provided with information on how to go about making their Formula One proposal.
The City added that in a meeting with CTGPSA, discussions centred around Formula 1 and Formula E was never part of the discussion.
"Officials took the CTGPSA through the requirements for City support and obtaining an endorsement letter. Following the discussions on the City’s events support processes, CTGPSA was asked to submit an application as required by legislation and City policy,“ the City said in a statement.
"The City has never received an events support application from CTGPSA for Formula 1 or Formula E.“
They also stressed that "the City of Cape Town did not participate in the bidding process for Formula E, nor did it make a decision on the South African agent to run the Cape Town leg of Formula E“.
It explained that decision on awarding the bid solely rests with the Formula E rights holder – Formula E Holdings.
"In December 2018, the City issued an endorsement letter for a feasibility study into the staging of Formula E after confirmation from the International Automobile Federation (FIA) and Formula E Holdings that they were in discussions with a South African consortium.
“The consortium approached Formula E Holdings on their own, as is the case with many event organisers who are looking to acquire rights to host international events in Cape Town.
"The City of Cape Town was approached for support by a Cape Town Formula E consortium - which later became eMovement - in 2018. This was more than year before CTGPSA made contact with the City.“
The City added that it is providing financial support for the Cape Town E-Prix, based on the fact that it has been endorsed by the rights holder Formula E Holdings.
"The CTGPSA has never been precluded from making an application for support; in fact they were asked to submit their application and even provided with information on how to go about making their Formula One proposal.
“The application will be considered like any other events proposal should the CTGPSA make a submission to the City.”