Reports have been circulating that Cycling South Africa’s 2016 financial statements identified “unlawful acts or omissions”, but treasurer Robert Booth said this was not the case.
The newly appointed treasurer said initial reviews did not indicate any misappropriation of funds, but this would be better determined once he’d had more time to complete a detailed review of all expenditure.
“There’s no embezzlement and there’s nothing where people who shouldn’t have been paid have been. The bottom line is that there’s not enough money coming into CSA for them to run their events.”
Booth explained that Cycling SA relied solely on membership fees, grants and sponsorships.
Robert Booth (right) is the newly appointed treasurer of Cycling SA. Photo: Supplied
Membership fees, which currently sit at R200 per year, went towards covering the costs of membership benefits and services provided to riders, explained Booth.
“Within that membership fee there is a portion that covers insurance at events and the road accident claim service we offer to members.”
He explained that whatever monies were left from the memberships were combined, with the nine provincial bodies and eight disciplines all drawing from that pool.
Income also came from day licence fees, but Booth said this was again largely received by the host province.
“We have races like the 947 and Cape Town Cycle Tour (CTCT) where about 30 000 take part. Cycling SA do get a contribution from that, but that largely goes to the province.”
He used the CTCT as an example to explain the agreement between Cycling SA, the Pedal Power Association and Western Province Cycling.
“The money goes to Western Province Cycling for the development of the sport, it doesn’t come to Cycling SA.”
For races like the Amashova or The Herald, the money was directed to the province that sanctioned the event.
Any grants or sponsorships received came tightly wrapped with a number of strings attached and Booth said this income was always directed towards specified projects.
“The reality is that cycling is funded by the generosity of government departments. Those projects they fund are for the benefit of the projects, not for the benefit of Cycling SA.
Cycling SA
“Nobody is putting their hand in their pocket and saying ‘here’s a grant to get you out of your current situation, with no strings attached’.”
When hosting an event, Booth said much of the funds received were ploughed straight back into the event to cover costs.
“If we look at the events hosted by Cycling SA, like the Para Games, which is one of our biggest events of the year, we will get probably a five per cent royalty.
“The other 95 per cent goes towards putting on the event, the development aspect and everything else that revolves around that event.”
He added that, if any, the host province would also get a cut of the profit.
“If there is a profit to be made, the profit is generally made in the province. If there isn’t a profit, CSA carry the can.”
He added that events like the national championships also included a licensing fee determined in Swiss Francs or Euros to be paid to the International Cycling Union (UCI).
Booth acknowledged there were a number of problems that needed to be resolved but said positive steps had already been taken.
Besides his appointment, he said a management board and financial review committee had been set up to get an accurate indication of the situation, determine what expenses could be saved and what income could be generated to alleviate the situation.
“The bottom line is that Cycling SA need funding because we just don’t have the means to run the organisation as it needs to be run.”
Read more about this from Cycling SA’s president William Newman here.
