Mehluli Sibanda in BULAWAYO
ZIMBABWE Cricket have made giant strides, under the International Cricket Council-controlled funding scheme, after virtually settling the delicate issue of loans which were chocking the domestic game.
So grave was the problem of the ZC liabilities Zimbabwe’s Full Membership at the ICC was even under huge threat if a solution had not been found.
ZC have now finally paid off the ICC loan, which was US$3 million, and the $10 million local bank loans, which were in 2017 housed under the Zimbabwe Asset Management Corporation (ZAMCO).
The non-performing loans with CBZ Bank, Metbank, Ecobank as well as NMB were housed under ZAMCO in 2017 after ZC got a 30 percent discount haircut.
According to ZC chairman, Tavengwa Mukuhlani, the controlled release of funds from the ICC was meant to address the issue of loans, settle legacy debt and put in place systems to control expenditure, primarily the wage bill. Initially, ZC were meant to pay off the ICC loan and loans under ZAMCO in December. With these having now been cleared ahead of schedule, ZC are on course to come off ICC’s controlled funding.
ZC are now left with a debt of $1 million, which is in the process of being verified by Pricewaterhouse Coopers.
Mukuhlani stated the plan was to pay off the remaining arrears in the third quarter of this year.
“The controlled funding that we are on from the ICC was supposed to address three key issues — the legacy loans, the creditors and the systems,’’ said Mukuhlani.
“So, the loans have been paid, the remaining creditors, we will finish in the third quarter of this year and, finally, we want to put a robust system that ensures that there is proper financial management at ZC.
“We are on course,’’ Mukuhlani said.
As soon as ZC can demonstrate they have addressed the issues, which led to the introduction of the monitored financial support, the matter will be brought before the ICC board for a determination.Should the game’s highest decision makers be satisfied Zimbabwe Cricket was now on a firm footing, ZC will go back to receiving funds twice a year from the ICC.“Once we have completed, and fully satisfied these three conditions, controlled funding then falls away because it has served its purpose,’’ said Mukuhlani.“It’s up to the ICC board, it’s not a Zimbabwe Cricket decision that we make alone.“When controlled funding falls away, we go back to the normal system where […]
