There is no end to the financial crisis at the
cash-strapped Zimbabwe Football Association (Zifa) as it has emerged that the
association’s debt has ballooned to $8 million from $6 million within three
years despite promises and claims by the Philip Chiyangwa-led executive that
they had tackled the issue.
A report from the external auditors, Baker Tilly Chartered
Accountants, for the year 2017, which set to be tabled at today’s elective
congress, indicates that liabilities of the association had increased from $5
944 656 in 2016 to $8 123 391 by December 31, 2017.
“We draw attention to the fact that at 31 December 2017,
the association incurred a consolidated loss of $8 123 391 and that the group’s
total liabilities exceed its assets by $ 7 940 053,” read part of the audit
report.
A check of previous audit reports suggests that in 2015,
Zifa’s liabilities stood at $5 089 754 and had, by December 31 2016, grown to
$5 944 656. In the 2016 financial audit report, the association had
total liabilities exceeding total assets by $5 944 656 and this did not include
a$1,2 million loan Zifa got from the Postal and Telecommunications Regulatory
Authority of Zimbabwe.
But now, the financial report suggests that Zifa was not
settling the loan while the interest continued to accrue although the
association was banking on government taking over the entire debt.
The loan has an interest rate of 5% and $225 000 was due by
September 2017 while the $1 million was due by January 31, 2019.
But to date, no cent has been paid back of the money
borrowed to fund the 2017 Africa Cup of Nations senior men’s national team
qualification campaign.
In the year 2017, Zifa according to the audit report,
received more than $2 million from various players including, Fifa grants ($805
117), TV rights $19 500 and registration $202 770 among others.
Government, according to the report, only gave Zifa $900
and the association pocketed a total of $274 572 from gate takings from all
matches in 2017.
Of that revenue, foreign travel alone by the Chiyangwa-led
administration used $379 314, and employment costs $257 538, a decline from
$327 708 used in 2016.
To their credit, the Chiyangwa administration in 2017 increased
allocation to women football from $131 346 to $425 294.
When Chiyangwa took over the presidency in 2015 he stated
that he would deal with the debt. In April, he told state media that he had
cleared off debt and that only $2 million was outstanding, but the audit report
indicates otherwise.
“The Zifa I have now is different from the one that I
inherited; I have managed to pay off all the banks. Our debt is now around $2
million and we are working hard to ensure that we settle everything that we
owe,” Chiyangwa was quoted in April.
But the audit report indicates otherwise. Also, Zifa owes Conduit Holdings, a company linked to board
member for finance Philemon Machana $ 22 00, former president Cuthbert Dube $
918 049, and statutory bodies such as NSSA $48 890 up from $46 066 for 2016.
On ex-workers, Zifa owes former CEO Jonathan Mashingaidze,
$116 744. He won his arbitration case and was awaiting confirmation of the
award. The auditors in 2016 had opined that Mashingaidze would lose his case or
that the amount would be reduced to $85 338,81.
But the ex-Zifa boss went on to get the award. Zifa also owes its former lawyer Maganga $95 000 although
the association was alleging that it owed him $30 000 only. The matter was by
December 31, 2017 yet to be finalised.
In 2018, the association lost a labour case against former
Mighty Warriors coach Shadreck Mlauzi for $187 290 and the auditors stated that
This comes as Chiyangwa, through his investment vehicle
Kilima Investment, and those linked to him, had reportedly pocketed $139 500 by
December 31 2016 and in 2017 paid 151 127 for accommodation and meals.
From that $139 500, $72 000 was paid to Kilima Investment,
a company owned by Chiyangwa, for rentals for the year 2017 and a similar
amount would be paid for 2018. Standard
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