The Singapore Sports Hub has incurred financial penalties as it failed to meet certain standards.
This was revealed in Parliament by the Ministry of Culture, Community and Youth's Senior Parliamentary Secretary Baey Yam Keng on March 6, but the exact figure or extent of penalties was not mentioned.
Baey noted that the Sports Hub hosted 212 events in 2019, but it might still not be enough bang for Singapore's buck.
The public-private partnership (PPP) to run the Sports Hub sees the Singapore government make S$193.7 million payments a year to SHPL over a period of 25 years starting from 2010.
Baey said in response to Nee Soon GRC Lee Bee Wah's supplementary question about the value for money aspect of the National Stadium since it opened in 2015:
There is a commercial contract with SHPL (SportsHub Pte Ltd).
So as mentioned, there are deliverables, there are penalties that are as part of contract.
So they have been taken to task over areas that they have not met the KPIs and we are in continuous discussion with them monitoring their performance, and having the assurance that they're committed to building Sports Hub as what was envisage.
I like to see that Sports Hub will be of value for money for Singapore.
It is our national sports icon. And we hope that the public, Singaporeans would also participate in these activities and help build a strong sporting culture for Singapore.
Pointed out the C-Suite problems and mass exodus
Lee's candid questioning of the Sports Hub in Parliament made for entertaining listening on a Friday.
She pointed out the suitability of the private sector partnership by highlighting the supposed behind-the-scenes troubles at Sports Hub.
She said there has been "a continuous exodus of staff last year and this year, including the majority C-Suite of Sports Hub, CEO, CFO, COO, Chief Commercial Officer, and general counsel".
She also questioned the venue's ability to make good on its duties to host 90 sporting event days per year.
In a reserved response, Baey said national agency Sport Singapore is in regular communication with the top management at Sports Hub and closely monitors performance to ensure agreed standards of availability of facilities and performance are met.
"SHPL is required to meet a minimum number of sporting event days at the National Stadium and Singapore Indoor Stadium each year," Baey said.
"Where they have not met the standards, they have been held accountable and financial penalties have been imposed."
Baey also revealed that the local sports industry contributed S$1.7 billion to Singapore's gross domestic product in 2018 -- a new figure to update the public in more than a decade.
However, this figure excludes growth areas like sports broadcast, infrastructure projects, sports events and conferences, as well as e-sports.
A consortium, SportsHub Private Limited (SHPL), runs the S$1.33 billion facility.
Four consortium partners are Global Spectrum Pico, Dragages Singapore, DTZ Facilities and Engineering and InfraRed Capital Partners, which is the majority equity partner.
This was what Lee said:
Lee Bee Wah
Singapore Sports Hub, for this national iconic project, much has been said about the public-private partnership model.
However, the sporting fraternity has yet to see positive changes that will convince Singaporeans that we have the right private sector partner running this national project.
Instead, we have witnessed a continuous exodus of staff last year and this year, including the majority C-Suite of Sports Hub, CEO CFO COO, Chief Commercial Officer, and general counsel.
From public reports, there have also been critical changes to the shareholders and key partners.
For example, the 83 percent majority shareholder InfraRed Capital Partners has been acquired by Sun Life.
In this a material change? Will it further impact negatively, the desired outcomes of the project.
Sir, it will be timely for minister to provide us with an update on the situation at Singapore Sports Hub, given that we are approaching the end of six years of full operations.
Please also update how we will keep our sporting calendar vibrant, given the non-performance of the contractual promise by Sports Hub private limited to host 90 sporting event days per year at National Stadium.
Are we getting value for money for this national project?