Zimbabwe Cricket owes Metbank $15 million

January 6, 2014

Newsday

By Wellington Toni, Sports Editor

6th January 2014

 

ZIMBABWE Cricket (ZC)’s financial quagmire, that saw the cancellation of the Sri Lanka tour and disruption of the domestic league, has been revealed as a $15 million loan from MetBank that is yet to be honoured.

While January 18 has been set for the resumption of the domestic league, is now highly unlikely as ZC may not secure sponsorship, which will further scuttle Zimbabwe’s preparations for the World Cup T20 competition.

Last month, ZC said it was unable to provide guarantees on when they will pay the striking players and the latest report from the central bank reveals the depth to which cricket, once an envy of many, has sunk in recent years.

An official Reserve Bank of Zimbabwe document in possession of NewsDay reveals that ZC owes MetBank $15 million.

“Medium-term strategies previously advised, including debt restructuring and loan syndications on large exposures such as the Zimbabwe Cricket ($15 million), Zinara corporate finance deal and a Nampower $50 million transaction are yet to be consummated,” read part of the document.

The report adds: “The gaps are mainly a manifestation of non-performing loans amounting to $29,43 million as at 30 September 2013.”

In August last year, Zimbabwe cricketers had formed a union to participate in salary negotiations prior to the series against Pakistan.

ESPNcricinfo understands ZC has asked the International Cricket Council for an additional loan of $3 million, but it is said the international body may only agree to that if ZC provided an audit of the funds they received from the Targeted Assistance and Performance Programme earlier last year.

Former ZC managing director Ozias Bvute is a non-executive director at Metbank while ZC vice chairman Wilson Manase is Metbank chairman.

ZC chairman Peter Chingoka is also Metbank non-executive director according to the company website. Chingoka has been at the helm since Zimbabwe gained Test status in 1992 and is deputised by Manase after the last board elections conducted in 2011.

Bvute is also chairman of the Air Zimbabwe board.

The board will also receive funding from the World Twenty20. A tri-series involving Australia and South Africa is also being mooted which could be a major source of revenue for ZC this year in addition to about $25 million for the 2015 World Cup.

Former Sports minister David Coltart told Cricinfo last August: “The association now is very much in the red. We estimate anything between $15-18 million in the red. That situation has been compounded by the fact that there have been very few international tours, very few profitable tours, which undermines the ability of Zimbabwe Cricket to address that massive debt. And that, in turn, has meant that players have not been paid on time.

“I had a meeting with (ICC CEO) Dave Richardson in Dubai in March and he told me that Zimbabwe Cricket, over the next couple of years, can expect revenues of up to $25 million. Zimbabwe cricket does not have the infrastructure that, for example, we see in New Zealand and $25 million, properly administered, should be enough to grow the game and pay players.”