South Africa’s Olympic governing body SASCOC has called for an urgent meeting on Sunday, 17 June 2012 where an interim committee will be installed to conduct the affairs of Basketball South Africa (BSA).
This follows a report delivered to SASCOC by the Transformation, Ethics and Dispute Resolution Committee who recently met with the leadership of Basketball South Africa.
The report found a number of irregularities in the day to day running of Basketball South Africa, including the fact that the association has effectively been bankrupt┬ásince 2010.
Other irregularities include the fact that the annual general meeting for 2011 did not take place in terms of the BSA Constitution, nor did the annual general meeting for 2012.
An audited financial statement for both 2011 and 2012 is outstanding while draft financials submitted to the committee reflected numerous shortcomings.
As of 31 March 2010 the association had accumulated losses amounting to R5 772 106 and the association’s total liabilities exceeds its assets to the tune of the same amount (R5 772 106 million).
SASCOC also takes note that a letter from the National Lotteries Board, dated 14 May 2012, was handed in by the BSA treasurer, and from queries raised it can safely be assumed that BSA will not have their application for funding processed and/or approved until such time as any queries raised have been responded to, and to the satisfaction of the NLB.
Following the above information, the SASCOC Board has now taken the following action regarding the BSA’s serious financial situation:
1. The current BSA Executive committee members who failed to comply with their fiduciary duties are removed from office with immediate effect. They are however not absolved from any liability that may arise out of their fiduciary duties.
2. SASCOC has called an urgent meeting of the BSA membership, scheduled for 11am on Sunday, 17 June where an interim committee will be installed to conduct the affairs of BSA in compliance with the provisions of the BSA Constitution.
3. The new interim committee members will be empowered to deal with outstanding financial issues, including a thorough internal audit of all expenses incurred.
4. SASCOC will at the same time conduct an investigation into the financial affairs of wheelchair basketball, which is a subsidiary of BSA.
5. SASCOC will engage the services of Mr Tshepo Nyewe, the administrator of BSA, to call for the urgent meeting of Sunday 17 June, 2012.
SASCOC CEO Mr Tubby Reddy said: “SASCOC places the utmost importance in the integrity and good standing of all the various sporting codes under its umbrella. Good corporate governance is not negotiable under any circumstances. In this regard we have previously seen the need to take action in a number of other codes and will not hesitate to do so again should the need arise.”