14 November 2012

Tanzania: Yanga Suffer Sh72 Million Loss

YOUNG Africans Sports Club has incurred a Sh74.2 million loss for the past four months, a club financial statement issued yesterday reveals.

Though the club, announced losses but this is a milestone in the country soccer history for a club to issue to the general public its financial statement.

A financial statement shows that from mid July to mid October this year the club income was Sh1.042 billion/- but the loss was attributed mostly to unspecified expenditures.

The statement signed by the club Chairman, Yusuf Manji and Acting Secretary General, Lawrence Mwalusako, shows that the 1.042bn/- income was fetched from various sources including grants which was Sh601.4 million  and gate collection (190.7m/-).

Other income was generated from sponsorship income (80m/- ), trade mark licensing (112.1m/- ), prize money (55.3m/-) and member registration (2.5m/-). Ironically, the statement shows zero income from broadcasting rights and not a single penny was collected from rent and merchandising in the specified period.

However, the club total expenditure stands at 1.12bn/- during the period under review, where most of the expenses were unapproved and a debt provision which has no information of its existence. The major unexplained expenditure items were on suspense account amounting to 288.19m/-.

The club failed to "satisfactorily" account for the said amount on how they spent 55.3 million Kagame Cup prize money, 30million for pre-season Rwanda trip and 30m/- for players signing fees at the opening of this season.

Others, from the same account, was 19.8m/- meant for paying players after terminating their contracts, 16.5m/- bonus payment for players, 8m/- paid for CECAFA, 3m/- for team coach accommodation and unexplained 57.8m/- on other activities.

The statement shows that Yanga received 80m/- from the Tanzania Breweries Limited between July and October 14 but no income has been received so far from the Mainland Premier League main sponsors-Vodacom Tanzania.

Moreover, the statement also indicates 85.6m/- was paid between July 14 and August 20 by the General Secretary without approval or input of the Executive Committee elected on July 15.

The statement also indicate a provision of 135m/- has been made primarily to new creditors that have made demands for payment for period prior to July 15 but no information of their existence has been found by the Executive Committee. When reached for comment, the ousted General Secretary Celestine Mwesigwa said though he has not seen the statement but he was curious with its timing.

"Why do they have to issue it now when I am demanding payment for the termination of contract...after all, they should have contacted me before making public any such questionable expenditure," he said.

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