ASA seeks Lotto bailout

2013-05-07 14:00
Zola Majavu (Gallo Images)
Cape Town – Newly-appointed Athletics SA (ASA) administrator Zola Majavu has painted a bleak picture of the financial turmoil that his organisation faces.

Majavu was appointed by the SA Sports Confederation and Olympic Committee (SASCOC) after the body suspended the entire ASA board two weeks ago, for the second time in less than four years due to infighting and financial irregularities.

Speaking to EWN Sport's website after he officially announced Ludwick Mamabolo to be restored as the 2012 Comrades Marathon winner after the athlete was cleared of doping charges, Majavu revealed the extent to which the organisation had suffered due to financial mismanagement and boardroom politics taking priority over the running of the business.

“The bottom line is, if ASA were a private company, we would effectively be bankrupt.”

"If ASA were a business we would be put under business rescue," Majavu said.

Majavu said the Athletics body has around R10m in the bank, largely from broadcast sponsorship, but that it owes its creditors more than that.

"(ASA) has been borrowing from Peter to pay Paul. This is situation we have inherited. There is a plethora of ASA creditors, but we would be unable to service this debt if required to do so."

Majavu said he would focus first on compliance issues and then make sure athletes and service providers were all paid.

Majavu said that prize money was still owed to athletes from the Soweto Marathon, among others.

Worryingly, Majavu revealed that Athletics SA still owed Sars R1.6m before they could bring outstanding returns up to date, but said he could not process SARS penalties and outstanding bonuses because he was not authorised to access ASA bank accounts.

Majavu said the athletics body was in the process of applying to the National Lottery for a bailout.

The Comrades Marathon Association honoured 2012 Winner of The Ultimate Human Race, Ludwick Mamabolo at Comrades Marathon House (Supplied)

Read more on:    asa  |  zola majavu  |  athletics

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