News24

Financial crisis at Athletics SA

2012-12-04 18:57

Johannesburg - Athletics SA (ASA) has appointed a committee to address its financial crisis in the hope of servicing its R4.3 million debt.

"We do have a problem that has to be addressed and a committee has been set up to deal with it expeditiously," ASA president James Evans said on Tuesday.

The committee was mandated to give feedback on possible solutions by December 21, he said.

The embattled federation was still reeling from financial problems it inherited from disgraced former president Leonard Chuene's administration.

ASA was stuck in a vicious circle as it was unable to secure a corporate sponsor until the federation's books were in a healthier state.

Sponsorship and funds from the National Lottery could only be used for athletics projects and not for servicing outstanding debt.

In the 2011 findings from the disciplinary hearing of Chuene, vice-president Kakata Maponyane and executive member Simon Dlamini, it was revealed ASA had gone from being profitable to incurring a large debt.

"The evidence shows, in effect, that from a positive bank balance of R500 000 in 2005, by the end of the financial year in 2008, ASA was in the red to the tune of R7m," advocate Norman Arendse, the chairperson of the disciplinary inquiry panel, said at the time.

One of the options open to ASA was to sell the property they own in Houghton - which houses its head office - and move into more affordable premises.

However, board members were divided on whether or not the offices, which cost ASA R120 000 per month, should be sold.

Evans said they had managed to hold off some creditors and he was confident they would find a solution to the problem.

Creditors included athletes who were still waiting on outstanding prize money.

Meanwhile, ASA was still without a new sponsorship deal for track and field athletics after its partnership with Yellow Pages ended in May.

Evans said he hoped to get Yellow Pages involved again as they were a reliable sponsor with a good track record.

ASA was in the process of finding a replacement for recently-sacked chief executive Frik Vermaak.

Applications for the newly formed general secretary position closed last week. Whether or not they filled the position would also depend on ASA's financial position.

SAPA

Comments
  • georg.potgieter - 2012-12-04 19:40

    How I long for the days when the sport was properly run - pre-1994.

      donald.perumal - 2012-12-05 13:00

      Pre94 sport was not run properly.You had a huge budget plus sponsorhip to take care of ten percent of the population.A kid could manage that!

  • anthonie.vanbosch - 2012-12-04 19:56

    Maybe all the members could contribute a R100 each to settle this debt on the condition that they publish their financial statements monthly on facebook?

  • sandor.l.varga - 2012-12-04 20:01

    No proper sport administration in S A. Football,cricket,athletics even some rugby teams are suffering. Corruption is all over. Very sad situation.

  • PrettyUsefulArt - 2012-12-04 20:06

    Besides being disgusting, the levels of corruption in this country are an embarrassment too.

  • johan.jacobs.5680 - 2012-12-04 20:35

    They ran, out of money.

      donald.perumal - 2012-12-05 13:01

      They have run out of money and are now chasing debt!

  • patrick.saunders123 - 2012-12-04 20:43

    anc cadres using sport as their personal cash cow.

  • Miles Pretorius - 2012-12-05 05:12

    I'm sure Leonards's bank balance is not in the red...

  • Blixum - 2012-12-05 08:40

    LOL White man has to come to the rescue again. During the apartheid years this organisation produced the most fantastic performances from all races. And despite of financial boycotts it was always properly funded and could account for every cent with no lotto to support it.

      donald.perumal - 2012-12-05 13:03

      This is not a problem about " whiteman" or white anything! Just good, honest administration!

  • rudzanimulaudzi.mulaudzi - 2012-12-10 18:11

    SA is a country of crisis, everywhere is a crisis this crisis that.

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