ZIMBABWE INDEPENDENT

24
Zimbabwe independent august 1 tO 7, 2014
Zimbabwe
sport
independent
9
ISSN 1564 - 0698
7 7 1 5 6 4 0 6 9 0 0 0
Soccer
Van Gaal, Moyes:
How they
differ/ Page 22
tenniS
Nadal a
doubt for US
Open/ Page 21
Zifa audit
VICTORY. . .
report
raises stink
Kevin Mapasure
Dube sweats on property
ZIFA president Cuthbert Dube is on the
brink of losing one of his residential properties
after the association failed to service
a bank overdraft of 2011.
According to the audit report compiled
by baker Tilly Gwatidzo Chartered Accountants,
the overdraft is now due and it had
swelled to US$ 1 568 839 as at December
2013.
Zifa took out loans to help finance the
association’s operations, particularly the
Warriors’ continental commitments, and
used one of Dube’s houses as collateral.
But that move could backfire as the association
grapples with a cash crisis which
has hindered any efforts to settle the
amount.
Only recently Dube used another of his
properties as collateral to secure accommodation
for the Tanzanian national team
which had been locked out of a Harare
hotel.
Zifa owe the hotel US$26 000.
There are however three-star hotels in
Harare where Zifa could have paid about
half of what they were charged for the Tanzania
booking.
Zifa promised to pay up once they received
their Fifa grant but it is the bank
overdraft that is causing Dube sleepless
nights with no prospects of Zifa securing
enough cash to pay up.
Councilors also took Dube to task over
using his properties as collateral.
To Dube’s credit, he might have saved
the association demeaning consequences
from Fifa.
The Warriors might have attracted a Fifa
ban by failing to fulfill a fixture as is the
case with the national Under 17 and Under
20 teams. — Staff Writer.
Cuthbert Dube
THE Zifa Assembly took the association’s
board to task over the audit report which
unearthed financial irregularities of close
to US$1 million.
The assembly met last week at Zifa Village
but a council meeting before the strategic
planning indaba, which is usually
a rubber-stamping gathering, produced
unexpected fireworks with councillors
demanding answers on the organisation’s
financial operations.
The mother body’s audit was conducted
by Baker Tilly Gwatidzo Chartered Accountants
and the statements show that in
the financial year ending December 2013,
total liabilities exceeded assets by US$4
792 748.
The audit report also suggests that as at
December last year Zifa owed board president
Cuthbert Dube US$694 376.
The report notes that there are no loan
agreements between Zifa and Dube and
there are no written terms and conditions.
It is however the US$744 635 which the
auditors noted was unaccounted for in
the 2011 report which raised a stink at the
weekend.
The auditors unearthed expenditure
without supporting documentation and
concluded: “Included in the consolidated
financial statements are direct match expenses
amounting to US$1 291 636 and
operating expenses amounting to US$
2375,33. However we were not able to obtain
appropriate and sufficient supporting
documentation or confirmations from
third parties.”
The auditors further report: “We were
not able to obtain appropriate audit evidence
in relation to the association’s recorded
accounts payables amounting to
US$744 635 of the US$781 588 recorded
in the consolidated financial statements,
over which there was no system of internal
control on which we could rely for the
purpose of audit. There were no other sat-
Moeen Ali wheels away after dismissing Virat Kohli to set up England’s 266-run victory
over India in the third Investec Test to square the series. Ali took 6-67 in the second innings
as England ended a winless run of 10 Tests which began in August last year.
isfactory audit procedures that we could
adopt to satisfy ourselves that the recorded
accounts payables were free from material
misstatements.”
The councillors demanded answers on
what the money was used for and why
there were no receipts, but they could not
get them from the board or the secretariat.
They resolved that they would go back
and study the reports and then reconvene
after three weeks to demand answers on
the amount in question.
Dube was warned not to hold the councillors
to ransom because he has been
pumping money into the association.
The cash-strapped association paid a
consultant US$15 000 to conduct the strategic
meeting held over the weekend, but
some within the association saw no value
in the exercise.
The 2012 statements show that Zifa had
a bank overdraft with CBZ amounting to
US$1,2 million which was secured by a
residential property in Cuthbert Dube’s
name.
The association owed Sharif Mussa
US$7 500 in addition to the US$672 596
loan from Dube.
In the period in question the association
received almost US$2 million revenue
from Fifa and Caf grants, player transfers,
gate takings, subscriptions, appeal fees and
registrations among other sources.
The financial statements show that the
association is US$4 194 674 in the red
and some of the creditors had obtained
court judgments to enable them to attach
property.
Last year Zifa collected US$1 million
in revenue with the Fifa and Caf grants
contributing US$309 978, while they got
US$50 713 from donations.
Player and transfer fees only brought
in US$27 000, while the association
made US$142 966 from registrations
with the other significant amounts coming
from match levies, and gate takings
(US$174 978).