Safa faces serious cash flow 'challenges'
According to the KPMG-audited financial statement, Safa spent R27.5-million last year, leaving it with R2.9-million in the bank, while salaries came to R17.1-million, reported the Sunday Times.
Safa received R113-million from the "Fifa World Cup Legacy Fund"—R39.9-million last year and R72-million the previous year—for the development of football.
Safa's former CEO Robin Petersen said only a small part of that amount was paid in cash as it included assets such as buses, X-ray equipment and fencing.
He admitted Safa faced "serious challenges" in terms of its cash flow after main sponsors Absa and Castle Lager had cut their sponsorships.
"You can't pay bills from assets; you can't pay teams using assets," he was quoted as saying but added that they were dealing with the challenges.
Safa CEO Dennis Mumble told the Sunday Times that in 2011, R8-million of the World Cup money was used to buy Mercedes-Benzes for Safa executives, with "extra responsibilities that took them to the regions" to make them "more mobile".
Mumble said Safa also spent money on buses because there was a need for transport.
"South Africa lacks public transport, especially in rural areas," he said.
Safa president Kirsten Nematandani said they bought Mercedes-Benzes and not cheaper cars because the carmaker was a sponsor, the newspaper reported.
"We needed to support the brands that support us," he told the paper.
He said wasteful expenditure had been cut. - Sapa.