The Sunday News
PREVIOUS Highlanders Football Club annual general meetings have, by and large, been mute on the institution’s escalating debt that was turning into an albatross for the club but last Sunday’s annual general meeting saw a different attitude as members took the executive to task over the issue.
According to the 2014 financial statement presented by PNA Chartered Accountants at the club AGM last Sunday, Highlanders’ debt increased by $65 657 to $617 609.
While the club’s liabilities have been mounting since dollarisation in the country in early 2009, and have been steadily going up every year, there have been little efforts coming in from successive executives to try and clear the debt.
Highlanders’ members came out guns blazing as they sought to find out what measurers the executive was taking in order to wipe out the mounting debt and there were murmurs of disapproval when it emerged the club had not set aside any revenue to go towards the payment of the debts in 2014.
And that there was little being done to either service the debt or raise revenue that would be directly channeled towards payment.
Club treasurer, Jerry Sibanda told the gathering that taking part in challenge matches was one of the measures being taken to raise money to clear the debt. However, members said that was untenable as the games were not an initiative of Highlanders and if the team was not invited to such games how would the debt be serviced.
Sibanda said the bulk of those who were owed money were former players and the onus was on the club’s members to engage those on the debtors list with a view for an understanding that the clubs settle half the amounts and the rest be written off.
He revealed that former coaches Mkhuphali Masuku and Philani Mabhena had negotiated a settlement with the club which resulted in Highlanders paying half the amounts owed them, while the rest of the money was written off.
Highlanders collected a total of $197 000 in prize money last year in the various tournaments they took part in but Sibanda said half of the income went to players as it was the policy at Highlanders.
Sibanda said the club was considering cutting the players’ earnings in prize money to 40 percent while the rest went to the club.
However, members felt there should be clarity on amounts that went to retiring the debt as they were not indicated in the financial statements.
Evans Mpofu said while the treasurer had explained that some of the debt had been paid there was no such indication in the financial statements and what was only clear was that Bosso now owes $65 657 more than it did last year.
“If we say the club has paid $20 000 of the debt but on the financial statements, we only see that it has increased by $65 000 then it makes us believe nothing is being done to clear it,” he said.
At the AGM club chairman, Peter Dube said they would be resorting to budget control to limit the debt from spiralling.
Sibanda however said what was pleasing was that the loss went down from $113 276 in 2013, a sign they were taking measures to reduce the debt.
Highlanders chief executive officer, Ndumiso Gumede said the club was coming up with various strategies to generate income that will revive the monthly subscriptions that were started by the Themba Ndlela-led executive in 2011 as a way of raising funds from the club’s members.
Gumede said they will be going back to the members who were making monthly contributions then to ask them to make the donations again.
“We will also be knocking on other members’ doors to ask if they can also chip in monthly as we take Tshinga Dube’s advice that we should do follow ups on those who would have assisted us in the past,” he said.
Tshinga Dube chided the club for failing to follow up on people who would have given to the club and gave the example of South African businessman, Phatudi Maponya who gave the club $10 800 after he attended a Bosso fundraising meet at Tshinga Dube’s behest.
“Maponya is a billionaire and such amounts ($10 800) are pocket money to him and I wonder why you failed to send a delegation to cajole him to donate more to Bosso. I know he loves this club and will be willing to give you more,” he said on Sunday while addressing the AGM.
Gumede added they were negotiating with a group of members who have expressed interest in reviving the exclusive Hlabangani Lounge at the clubhouse and make it a members-only joint that would generate income which will go towards the maintenance of club infrastructure. He said they would renovate the lounge to high standards and return it to full operation.
Gumede said they will be implementing the full recommendations of the auditors who said Bosso is a big brand with a huge potential that should be fully exploited in order to generate more revenue for the club.
Although the club runs the Sports Club and Manwele Beer Garden, the two entities registered losses, $5 043 and $221 respectively although it is hopeful the latter’s fortunes will be different in 2015 with the accountants recommending that strategic committees be formed to ensure the ventures were properly run.
Bosso will have to make do with a reduced sponsorship package from their principal funder, BancABC which has gone down to $400 000 from last year’s $700 000.
