Despite the South African Football Association (Safa) struggling financially, some of its national executive committee (NEC) members have been taking loans from the association, using the annual honorariums, which are not guaranteed, as a collateral.
News that the executives obtained loans from the cash -strapped football body was revealed by Safa finance committee chairperson Mxolisi Sibam at the last NEC meeting in Gqeberha, before Bafana Bafana’s match against Congo three weeks ago.
Sibam’s claims infuriated delegates at the NEC meeting and almost threw the gathering into disarray.
This was after shocked delegates, demanded answers and the identity of individuals who had taken the loans, saying they wanted them to be exposed.
Sibam is expected to submit a more detailed presentation at the next NEC meeting.
Sunday World can reveal that members have been taking copious amounts. They would usually take the total amount of their annual honorarium, which is in the region of R100 000 after tax. These quantums would be approved by the association even though the annual honorariums were not guaranteed, especially because the association is often financially in the red.
When contacted, Sibam declined to comment and referred enquiries to Safa CEO Lydia Monyepao. “As members of different committees and portfolios, we are not allowed to talk to the media. Kindly contact the CEO,” said Sibam.
Three NEC members independently confirmed the allegations to Sunday World.
Said an NEC member, who opted to remain anonymous: “The issue was contentious and caused a bit of a commotion. People are getting loans and there is no policy [about that]. How are they given the money? They gave some members an equivalent of the honorarium – meaning they will not get anything when honorariums come – but there are no guarantees regarding honorariums, which means it is just a risky strategy to keep the NEC members happy.
“The fincom chair was giving a finance and audit opinion. He said Safa needed to draft a policy regarding what is called loans. We asked him how, because we do not have provision for loans – and that it must be dismissed in its totality. We got an audit opinion that speaks about loans that are not guided by policy. In any business, you cannot give out loans without a clear policy,” said the NEC member.
Another NEC delegate who was part of the proceedings in Gqeberha said: “The organisation is run by standing committees, with different portfolios. So, the finance committee is one of them and once in a quarter, they resolve or recommend matters to NEC, who will either defer or reject them. When Sibam was tabling his report, he
mentioned that there were no funds and that the association was operating without a budget.
“Sibam explained there were still items he wanted to bounce with the NEC. He did not mention names of the people who had taken loans because the meeting had to be speeded up as the NEC members needed to attend an Eastern Cape Provincial Sports Awards function.
“There were questions as to how these loans were paid and how these transactions (loans) were processed without a policy on them. Sibam asked that since they are the custodians of finances in the association, why the processing of these transactions does not come to them, they only came to them already processed.”
A third informant who was also in the meeting alleged that there were some members who wanted to know the names of those received the loans.
“Because in the absence of a policy, it is unauthorised. We are challenging these things to assist the association not to make the same mistakes they have been making.
“We are against the policy and not the individuals, and that the administration must tell us who benefitted and who approved them,” he said.
The source further said the only way the federation can recoup the loans is when congress approves the honorarium.
“There hasn’t been any honorarium paid out in the last two years. These kind of things go with a good financial performance; we cannot have a bad financial year and members expect honorariums – it’s like a performance bonus, and if we did not do well, how do you take loans – and against what? With what surety?” he asked. Safa had not responded to Sunday World enquiries at the time of going to print.
