Safa hit by cash problems – Report

2010-01-22 10:46

THE South African Football Association (Safa) is struggling with

cash flow problems, the Mail&Guardian reported today.

The weekly newspaper said it had access to Safa’s bank accounts

which showed a negative balance of more than R7.4 million.

It said other Safa documents showed that it also owed suppliers

another R7 million.

A senior Safa official, who was not named in the report, said the

situation was even bleaker than that.

“We are close to R10 million in the red, excluding what we need to

pay our suppliers,” he said. “It’s becoming increasingly difficult to run the

sport smoothly in the country. The majority of our regions have not received

their grants, which has paralysed the game in these affected areas.”

A letter written by the Safa Waterberg region which was leaked to

the Mail&Guardian said the region was facing eviction from its office, and

that it had not paid its phone bills and owed staff members their

salaries.

But former Safa chief executive Raymond Hack told the weekly paper

that allegations of financial problems were “absolute nonsense”.

“The SABC alone owes Safa almost R27 million,” said Hack, who

resigned from his position early in January. “Even if we had a worst-case

scenario of owing the bank R3 million, which I doubt very much, Safa’s books

would still indicate a healthy balance of R24 million.

“I am reliably informed that the SABC will pay... this week which

should sort out any financial problems,” added Hack, who reported a R32 million

profit for Safa last September.

Safa’s vice-president for finance, Mandla Mazibuko, confirmed to

the Mail&Guardian that Hack left Safa’s account in a deficit but would not

give any figure.

“It’s really too early for me to comment because I’m still going

through the books,” said Mazibuko.


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