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Johannesburg - The South African Football Association (SAFA) made a loss of R54.4 million for the year to June 2012, the Sunday Times reported.
According to the KPMG-audited financial statement, SAFA spent R27.5 million last year, leaving it with R2.9 million in the bank, while salaries came to R17.1 million.
SAFA received R113 million from the "FIFA World Cup Legacy Fund" - R39.9 million last year and R72 million the previous year - for the development of football.
SAFA's former CEO Robin Petersen said only a small part of that amount was paid in cash as it included assets such as buses, X-ray equipment and fencing.
He admitted SAFA faced "serious challenges" in terms of its cashflow after main sponsors Absa and Castle Lager had cut their sponsorships.
"You can't pay bills from assets; you can't pay teams using assets," he was quoted as saying but added that they were dealing with the challenges.
SAFA CEO Dennis Mumble told the Sunday Times that in 2011, R8 million of the World Cup money was used to buy Mercedes-Benzes for Safa executives, with "extra responsibilities that took them to the regions" to make them "more mobile".
Mumble said SAFA also spent money on buses because there was a need for transport.
"South Africa lacks public transport, especially in rural areas," he said.
SAFA president Kirsten Nematandani said they bought Mercedes-Benzes and not cheaper cars because the car maker was a sponsor, the newspaper reported.
"We needed to support the brands that support us," he told the Sunday Times.
He said wasteful expenditure had been cut.
According to the KPMG-audited financial statement, SAFA spent R27.5 million last year, leaving it with R2.9 million in the bank, while salaries came to R17.1 million.
SAFA received R113 million from the "FIFA World Cup Legacy Fund" - R39.9 million last year and R72 million the previous year - for the development of football.
SAFA's former CEO Robin Petersen said only a small part of that amount was paid in cash as it included assets such as buses, X-ray equipment and fencing.
He admitted SAFA faced "serious challenges" in terms of its cashflow after main sponsors Absa and Castle Lager had cut their sponsorships.
"You can't pay bills from assets; you can't pay teams using assets," he was quoted as saying but added that they were dealing with the challenges.
SAFA CEO Dennis Mumble told the Sunday Times that in 2011, R8 million of the World Cup money was used to buy Mercedes-Benzes for Safa executives, with "extra responsibilities that took them to the regions" to make them "more mobile".
Mumble said SAFA also spent money on buses because there was a need for transport.
"South Africa lacks public transport, especially in rural areas," he said.
SAFA president Kirsten Nematandani said they bought Mercedes-Benzes and not cheaper cars because the car maker was a sponsor, the newspaper reported.
"We needed to support the brands that support us," he told the Sunday Times.
He said wasteful expenditure had been cut.
