He was responding to Parliament on the contentious issue of banning alcohol advertising, which is before Cabinet.
“Those who say the ban must be in place, must indicate to us where the money comes from (for sport). We insist if such a ban takes course, then we need a guarantee that money will come. This time we will not accept word of mouth. It must be in the legislation,” he says with a concern.
Moemi said the department had embraced the ban on tobacco advertising on the undertaking that any lost sponsorships would be compensated through income from increased sin taxes. Every year the sin taxes had increased, but nothing had come their way.
At the same time, South Africa’s economy stands to lose out on R7.4 billion if a “ban” on alcohol advertising was introduced.
With news that Bafana are about to lose Absa and Proteas are still alcohol sponsored, things could get worse if the legislation goes ahead, thus resulting in thousands of jobs losses.
With reported income of R1,8bn on sports sponsorship and advertising in 2012, the public broadcaster could also lose R500m in revenue.
This is the discussion which the nation would be following with great interest, locally and internationally.
“What about investors?” asked an economic’s analyst.