Is SAFA about to collapse due to crippling state of its finances?

Is SAFA about to collapse due to crippling state of its finances?

- The South African Football Association is reportedly teetering on the brink of collapse as it fails to make payments to regions and associate members

- The organisation has also failed to payments on several court orders including to its former CEO Leslie Sedibe

- Last week, staff at SAFA house had to plead with the Sherriff of the Court not execute an attach-and-remove order in order to recover legal fees owed to Sedibe

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The South African Football Association (SAFA) is reportedly teetering on the brink of total collapse because of the poor financial state the organisation finds itself in currently. SAFA has reportedly failed to make monthly payments to its regions and associate members since May.

SAFA’s finances have come under pressure due to mounting lawsuits brought by creditors and former employees and have been exacerbated by the failure of certain sponsors to honour their payment agreements.

READ ALSO: NPA accused of dragging their feet with more than 600 fraud cases

SAFA spokesperson Dominic Chimhavi rubbished claims that SAFA was on the brink of collapse and said there was no financial crisis at the organisation. Chimhavi said SAFA did face a cash flow problem which was caused directly by the SABC’s failure to make broadcast payments on time.

Briefly.co.za gathered that chaos reigned supreme at SAfA’s offices, SAFA House, last week when the Sherriff of the Court arrived to execute an attach-and-remove order which was granted on behalf of former SAFA CEO Leslie Sedibe.

The court ordered SAFA to pay for Sedibe’s legal costs.

News24.com reported that SAFA staff resorted to pleading with the Sherriff not to remove office equipment. A lawyer representing Sedibe intervened in the matter and granted SAFA until last Friday to make the required payment.

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It remains unclear whether payment has been made but sources close to the matter said if payment was not received the attachment order would be executed in full on Monday.

Unfortunately for SAFA Sedibe is not their only concern. The organisation also faces legal action from its former official travel agent Fli-Afrika Travel. SAFA was ordered to make payments in excess of R30 million to the company by the Johannesburg High Court.

Fli-Afrika is currently in the process of securing its own attachment order because SAFA has failed to make payment or make arrangements to make payments as per the court order.

Chimhavi said SAFA was in the process of challenging both of the rulings.

READ ALSO: Jackson Mthembu calls for ANC probe into Zuma-backed plot to oust Ramaphosa

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Source: Briefly.co.za

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