Despite the claims of huge monetary benefits for the country, the proposed R900m sponsorship deal between SA Tourism and Premier League football club Tottenham Hotspur is unlawful.

This is according to Minister of Tourism Patricia de Lille, The Citizen reports.

‘Given the circumstances we find ourselves in economically, we have to be much more careful and give consideration to everything that we do as government. Money must be spent wisely and prudently at all times as we are entrusted with public funds,’ she said in a media briefing on Friday.

The deal was met with anger after emerged almost two months ago, prompting three SA Tourism board members to resign.

SA Tourism, which defended the deal, claiming that it would get R88m as return on investment over a three-year period, then launched an investigation to find out who leaked the information.

De Lille said legal opinion revealed that the deal was unlawful and invalid because it did not comply with the Constitution, the Public Finance Management Act and SA Tourism’s own supply chain management policy.

It appears that the sponsorship is a service which was proposed to be acquired by procurement through sole source. Sole source procurement is, however, only allowed where there is no competition in the market and only one supplier is able to provide the goods or services, which does not appear to be the case here,’ she said.

She also indicated that the deal has not been budgeted for and expenditure in that regard would be irregular.

‘The deal amounts to a significant partnership transaction which required my prior approval,’ the Minister added.

De Lille, therefore, ‘advised’ the SA Tourism board that the deal ‘may as well be stopped completely’.

She said she understood that no deal has been signed.

Full report in The Citizen