SPoRTT writes off Life Sport $millions.
By Ryan Bachoo (Guardian).The Sports Company of T&T has written off the $9.4m owed to it by the now defunct Life Sport programme. This was revealed in a report into the organisation’s financial performance by independent auditors Moore published in the press on Tuesday. The Life Sport debt goes back to the last government, where it was found that the programme was riddled with corruption and eventually shut down by former Prime Minister Kamla Persad-Bissessar in July 2014.
Speaking to Guardian Media Sports yesterday, Chairman of the Sports Company Douglas Camacho said, “That would have been a receivable that would have been in the books for a number of years and under the accounting rules it is not likely that the receivables will be collected so we made the decision to write it off in this financial statement.”
But the report went further in showing that the Sports Company had paid out over $13.4m in a court settlement and expenses during 2019. When asked to clarify this expenditure, Camacho told Guardian Media Sports, “There are number of old matters before litigation, disputes over amounts and quantum.” He went further in explaining that a large chunk of that figure went to one contractor who was suing the organization for more than double than that of which was settled.
“The major part of that was a settlement for some work done where the contractor was claiming $25m and Sportt Company was saying that figure was way too high and we were able to settle for a lot less so we were able to get a settlement and resolve the matter in a fair way,” Camacho further stated.
While that lawsuit may have been settled, the report shows that the Sports Company owes creditors millions of dollars. Its current assets total $92m while non-current assets amount to $339m. Also, its current liabilities totalled $209m while its non-current liabilities was shown to be $335m. Current liabilities are those that need to be paid off within a three-year period while non-current are not dated.
Camacho said the Sports Company is at a disadvantage because it doesn’t generate income. He stated, “The struggle is that Sports Company, as a legal entity, does not have the right to collect revenue on its own behalf. All of the funds that the Sports Company receives are, in fact, grants from the government of T&T so that although we may have Hasely Crawford Stadium under our remit, when we rent it out for a concert and we collect revenue we don’t retain the money. We don’t have the right to retain. It all goes to the consolidated fund.”
Camacho said his organisation may have requested the funds and are not yet in receipt of it which would explain the figures.
RELATED NEWSSPoRTT records $114m deficit, writes off $9m LifeSport balance.
By Jelani Beckles (Newsday).STATE company SPoRTT recorded a $114 million deficit for 2019, $36 million more than 2018. Included in that total, published on Wednesday, was $60.7 million for infrastructure development, $40.5 million for equipment and storage rental, $11 million for salaries and staff benefits and $9 million to write off the LifeSport balance.
This effectively puts an end the $400 million LifeSport scandal, nearly five and half years after former prime minister Kamla Persad-Bissessar ended the programme because of fraud, theft, and allegations that the programme, which was supposed to empower at-risk youths away from crime through sport, was linked to people involved in criminal activity.
In his report, chairman Douglas Camacho said, "SPoRTT has experienced a difficult and challenging period, but since being appointed chairman on July 4, 2018, the board has continued to focus on rebuilding discipline and good corporate governance to redefine how we operate and do business. We have met with each of the National Governing Bodies under our purview, ensuring that there is a clear understanding on requirements to be met so that requests for funding can be processed. Our present target for achievement has been made very clear – Tokyo 2020 Olympic Games."
In a brief interview with Newsday, Camacho added, "It (Life Sport debt) has been around a long time and the write off is because the probability of collecting on the debt is remote at best...that is written off, that is no longer a debt, that is gone."
SPoRTT received most of its money through a $127.9 million government grant, $11 million less than the subvention in 2018. Its other income was $375,362, for a total income of $128.2 million. Its total expenditure was $164.3 million and its deficit for the year was $36 million. The accumulated deficit brought forward from 2018 was $77.7 million, bringing its total deficit to $113.8 million.
Camacho said despite the debt the Government has been making a priority in assisting athletes as the games approach.
"Is two dimensions to look at there. One is the preparation and the process of qualification. The Government of T&T had indicated since 2018 the focus of this Government would be to assist national athletes and teams aspiring to get to the Olympic Games as a priority and to be honest, as a matter of fact, they have honoured that commitment for the last year and a half."
Funds don't come to SPoRTT, he noted. Instead, when a party, for example, Machel Monday, rents the Hasely Crawford Stadium, that money goes to the State's Consolidated Fund. "From that perspective, there is very little directly that we could do to advent that debt."
Camacho suggested a couple of options to help reduce the debt, including capital injections to help eliminate the debt.
Douglas Camacho - Chairman of SPoRTT