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The Gauteng government says it has cancelled GP Motorsport contracts so that provincial resources could be channeled to other more immediate priorities.
The Gauteng provincial government has cancelled the GP Motorsport contracts which will result in an estimated saving of R928 million.
"I wish to reiterate that the decision taken to terminate Motorsport contracts are aimed at ensuring that we channel all the available resources to our immediate priorities adopted by the Gauteng provincial government," said Gauteng MEC for Economic Development, Firoz Cachalia on Monday.
The savings include allocations which were originally made for Formula 1 deposits and the money has now been re-allocated to newly identified priorities.
The total Motorsport 3-year grant allocation was R167 million for 2009/10, R334 million for 2010/11 and R426 million for R2011/12.
This amounts to just over R928 million for the MTEF, including Formula 1 rights and license fees.
The terminated contracts include A1 GP, Formula 1, and BMW Sauber. Potential liabilities under the BMW Sauber contract were approximately R105 million on a three-year period. - Buanews
