The Sunday News
Allan Foti, Sunday News Correspondent
WORLD Rugby has cut the Zimbabwe Rugby Union’s annual grant by 45 percent following years of unrestrained fiduciary improprieties and lack of corporate governance systems.
This was revealed following the election of former Sables wing, Aaron Jani as a substantive president two weeks ago.
According to sources within the Union, World Rugby notified ZRU that its grants had been cut from $90 000 to $50 000 representing a 45 percent reduction for the financially struggling Union. The sources said World Rugby described the ZRU as an “investment risk” when the rugby’s world governing body explained the reasons for the reduction.
“Immediately after the elections at Prince Edward High School two weeks ago, a representative from World Rugby, Steph Nel who was in the country to observe the elections told the new Executive Committee of their decision to cut the Union’s grant from $90 000 to $50 000 with immediate effect.
This means next year, the ZRU will be operating with a more constrained budget,” revealed the source.
Reports from within the Union suggest that they may be job cuts as measure to control spending and allow the ZRU to work within the remainder of its grant.
This is not the first time that the grant has been used by World Rugby to force the ZRU to put in place proper administrative and financial systems. In 2013 World Rugby withheld the grant and launched investigations into the Union amid allegations of misuse of funds and improper administration.
The investigation was launched just over a year into former Union president John Falkenberg assumption of office.
Now four years later the ZRU has found itself in yet another financial mess that has attracted the attention of the World Rugby who decided this time to reduce the grant until ZRU can prove that its back on the right track.
The Union’s new president, Jani confirmed that indeed World Rugby has reduced his organisation’s annual grant which is due next year. He said it was unfortunate that this has happened at a time when the Union is already struggling to run its affairs and develop the sport in the country.
“It’s true that the grant has been reduced. Its unfortunate and comes at the worst time for the local game. We were already struggling financially and this is a major blow to our operations. Sadly there is nothing we can do except to get our house in order then go back to World Rugby and hopefully this decision will be temporary,” Jani told Sunday News Sport.
Jani confirmed that his Union would soon be looking at cost cutting measures following the grant reduction adding that jobs cuts were a very strong possibility. However, he remained confident that his Executive Committee would be able to come up with a solution to cushion the game from the effects of the reduction.
“My Executive Committee comprising myself and my two vice-presidents and the chief executive will work out how we can cushion the sports itself from the loss of such a substantive portion of the grant,” said Jani.
ZRU also ushered in Martin Shone and Losson Mutongwiza as vice-presidents of the south and north, respectively. -@AllanFoti
