Calls for cash-strapped uShaka Marine World to be sold by eThekwini Municipality

Durban - One of the opposition parties in the eThekwini Municipality has called on the municipality to consider selling uShaka Marine World amid concerns that the entity has become a financial drain for the city.

DA councillor Nicole Graham warned that over the coming months, the city needed to take a hard look at whether it was wise to continue owning an entity that survives largely on the city’s bailouts.

She said the city was in a strained financial state at the moment and cannot afford to spend on the entity.

UShaka has struggled financially over the years and has received millions of rand in bailouts from the city. The entity will receive another R160 million in funding from the city in this new financial year.

During a council meeting on Thursday last week, the city approved the transfer of this money.

The idea to sell the entity was shot down by the ANC and IFP, who said it had value and there was a need to protect the workers employed by uShaka.

The report tabled before council stated that authority was being sought to transfer funds in accordance with the 2022/2023 approved budget to ensure financial viability for the Durban Marine Theme Park.

It called for the council to approve the payment of R79 520 000 in four equal quarterly disbursements, for the work undertaken by the South African Association for Marine Biological Research responsible for the operations of the Sea World, as per the agreement entered into with the Durban Marine Theme Park.

Graham said while uShaka had suffered as a result of the lockdown and other natural disasters, the management of the entity had also not done themselves any favours in the way they run the entity.

“There are several concerns regarding the governing of uShaka Marine Theme Park. Although it has been hit by the lockdown and other unfortunate natural disasters, the management has not been up to scratch.

“UShaka in 2019 said they would commission a feasibility study into long-term options of what they needed to do to continue to be sustainable, to fund themselves, and what they could do to break even. To date they have not completed that, which means it has taken the board of uShaka three years to put out a tender for a feasibility study for which they had the funds available,” she said.

“That is an incredibly worrying state of affairs as the municipality is the surety for these entities and the municipality is financially liable for what happens.

“We need to think long and hard whether the city can continue to own these entities, especially when they are so badly managed,” said Graham.

She said the reality was that the city could not keep pouring hundreds of millions of rand into an entity that was “nice to have” but was running at huge losses and was not being managed properly so the city could get the benefit.

IFP councillor Mdu Nkosi said it would be improper to cut the funding to the institution, which has been through a difficult time.

“Before we complain about money, we should look at how many people are employed at that entity. UShaka is our entity 100%.”

If the entity was sold or closed down, he asked, “What would happen to those workers?”

ANC councillor Thanduxolo Sabelo said the ANC did not agree with the DA.

“We believe uShaka is an important asset of that city that adds value to the promotion of tourism and leisure. It also catalyses development in our city.

“We are aware that the asset was doing well before Covid-19 and had taken a big knock during the pandemic. The city will continue to support the entity, which we believe will soon fully recover, as you are aware that the city is forging full steam ahead to revive the tourism industry.”