BSA on the ropes
AS cash-starved boxing officials battle possible bankruptcy, Stan Christodoulou described how the sport's administration was once as solid as Baby Jake Matlala in his prime.
SOLID DYNAMITE: Jacob Matlala. Picture by Gallo ImagesWe were self-sufficient. Our money came from licence fees and from sanctioning fees. That's why we were autonomous
Boxing South Africa (BSA) made a R2,7m loss in its most recent financial year - ending on March 31, 2011 - with a net asset deficit of R6,2m.
In a qualified audit, the auditor-general stated there was "a material uncertainty that may cast significant doubt on the entity's ability to continue as a going concern".
The audit highlighted several problems:
R132335 lost in cash as part of R527588 paid by boxers, trainers, promoters and others for their licence fees;
Fruitless expenditure of R1,6m; and
Irregular expenditure of more than R720000.
At a parliamentary committee meeting last month, Cope MP Graham MacKenzie told BSA's top brass that if the organisation were a person, it would be behind bars.
Christodoulou, in 29 years as executive director of the SA National Boxing Control Commission - BSA's predecessor - had never had a qualified audit.
"There was never a cent out of place," Christodoulou told Sunday World this week.
"In fact, over the years five ministers wrote letters to the [then] board chairman, Judge HWO Klopper, congratulating him on the books," said Christodoulou, who retired at the end of 1998.
In the latest annual report, acting CEO Loyiso Mtya, one of 13 employees on BSA's books, bemoaned the absence of a chief financial officer.
But Christodoulou did the job with just two secretaries and one messenger.
BSA earned R1,79m from sanctioning fees paid by promoters to stage boxing tournaments. This was down considerably from the R3,9m the previous year, largely because the SABC stopped televising bouts.
BSA's biggest chunk of income was R3,2m in grants from government while the Lotto gave R670000.
In Christodoulou's day the commission declined government funding and no sponsorship money went to running costs.
"We were self-sufficient. Our money came from licence fees and from sanctioning fees. That's why we were autonomous," said Christodoulou.
BSA spent nearly R3m on salaries and staff costs in the past year, including a 42% pay increase for Mtya, who pocketed R796022.
Sport minister Fikile Mbalula fired Peter Ngatane as BSA chairman in August last year, replacing him with Ngconde Balfour and appointed Moffat Qithi as CEO in June. But it remains to be seen what impact Balfour and Qithi will have had in the current financial year, which ends next month.
