Boxing SA on brink of bankruptcy

LOYISO Mtya says Boxing SA's finances have been in a mess since 2001.

LOYISO Mtya says Boxing SA's finances have been in a mess since 2001.

The BSA chief executive was reacting to their latest annual report for the year ended on March 21 2009.

It contained a warning from the auditor-general that the financial statements "indicate the existence of a material uncertainty that may cast significant doubt on the entity's ability to continue as a going concern".

Mtya said previously provincial structures ran their own boxing, had their own assets and their own budget.

"So if you look at our final audit report, it has improved," he said yesterday.

Mtya said the Boxing Act was to blame for the auditor-general's warning because it made them a non-profit organisation.

"The amount of money that we get from government, sanctioning fees and donors is not enough to cover the costs of administrative, social and political obligations," he said.

The government's funding is around R3million. The audit report recorded an operating loss of R4,3million and that Boxing SA's debt exceeded its assets by almost R6million, with current liabilities amounting to R8,2million.

Mtya said if they did not get sanctioning fees (about R2,2million) they would not have been able to run boxing, also applauding the support of provincial governments in Free State, Eastern Cape and North West.

The report said Boxing SA's total expenditure for the year was R11,9million but revenue amounted to R7,4million.

So the body is on the brink of bankruptcy.