Johannesburg - Government is to help Boxing South Africa (BSA) settle its R5 million outstanding debt with the South African Revenue Services (SARS).
The announcement was made by Sport and Recreation Minister Fikile Mbalula on Wednesday, following a meeting with the Boxing SA board yesterday to get an understanding of the current challenges facing boxing in the country and to discuss a way forward.
"It was resolved that BSA will be assisted to settle its outstanding debt to SARS," he said, adding that the bail out was aimed at improving Boxing SA's cash flow process over the 2011/12 until 2013/14 Medium Term Expenditure Framework.
Challenges relating to corporate governance in the sport were also some of the key issues which emanated during the meeting.
As Boxing SA has been without a permanent CEO since May 2009, the minister tasked the Boxing SA board to finalise the appointment of a CEO and Chief Financial Officer by January 2011.
The minister said the absence of the CFO contributed to Boxing SA violating the Income Tax procedures.
Boxing SA chairperson, Dr Peter Ngatane, said the overall debt amounts to R5 million, including penalties. Mbalula said they had allocated R1 million to the appointment of both the CFO and the CEO.
"We also noted that the disunity existing within boxing amongst promoters, stables, TV channels and Boxing SA.This saw the organisation losing out on value and infighting has caused much damage to the structure and its reputation," he said.
The former youth leader said the SABC was also not doing justice to the sport of boxing in the country.
"The time allocated to boxing has not in any way carried anymore investment. It is no longer fashionable to watch boxing like it used to be in the past. This is directly opposite to the times when there was freedom of movement by boxers and the sport had high quality competitors, who were watched on television in the early hours of the morning during international fights," Ngatane said.
He added that notable sponsorships have also left in the recent past. This was seen as a major problem in this time of need for boxing resuscitation and survival.
Mbalula said he will be meeting the public broadcaster to get a clear understanding of the challenges, as well as assisting BSA to facilitate the development of a comprehensive strategy.
"Our bottom line is that, productivity and the desire to get results is not negotiable. Our people are eagerly waiting for change and talent is in abundant," added Mbalula.
