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FURTHER DETAILS ON THE NEW YORK TIMES INVESTIGATION INTO AIBA REQUIRE SWORN AIBA AFFIDAVITS TO BE MADE BY AIBA

REMARKABLY IT WOULD APPEAR THE PRICE WATERHOUSE COOPER (PwC) REPORT, ON THE LOAN TO WSB IN 2015, A YEAR BEF0RE THE UK OLYMPIC GAMES,  AND DELIVERED MORE THAN A YEAR AGO, WAS A ‘DRAFT.’

ACCORDING TO DETAILS ACCREDITED TO AIBA IN THE NEW YORK TIMES THE FINAL PwC REPORT HAS YET TO BE COMPLETED.

THIS IS AN ASTONISHING STATEMENT WHEN EARLY IN THEIR INVESTIGATION PwC RECOMMENDED AIBA SHOULD CONSULT A LAWYER WHO SPECIALISES IN CRIMINAL MATTERS.

As a worldwide top firm of accountants PwC would seriously consider the matter before giving advice to a client to seek advice from a criminal lawyer when the usual practice when fraud is discovered by accountants within a client Company, is to advise the client to call the police and have the matter investigated.

In a statement to the NY Times, AIBA said it was looking into reports of problematic bookkeeping related to the professional boxing venture in North America, and it has been suggested a former AIBA senior official Mr. Ho Kim was to blame because he oversaw the project.

This is denied by Mr. Ho Kim and, apparently, it appears he is not revealed by accountants PwC in their investigative report to be the sole central figure. It would be interesting to know who within AIBA briefed PwC and what was the PwC brief?

AIBA has, however, strongly rejected suggestions that the payment from Azerbaijan was a bribe offered in return for favourable judging when an Azeri boxer is boxing.

In a reported statement AIBA stated: "The most unacceptable suggestions in the article are a hypothetical link between the loan and Azeri performances in the ring." The report by the New York Times detailed Azerbaijan has won nine medals, including, four gold [medals] at the three AIBA World Championships since 2010.

Obviously, if the AIBA explanation is correct it is a coincidence and Azerbaijan has become a goldmine for boxing talent.

A reported AIBA statement declares, "AIBA wishes to reiterate, as it has done for many months and in several media outlets, the lingering issue of an Azeri loan is under discussion in complete transparency with the creditors.

To all intents and purpose there were no creditors only a singular one.

The AIBA reports continue: "AIBA does not deny that a loan was granted by an Azeri company in order to help fund the launch of the World Series of Boxing in America. 

"Said loan was, however, granted to a company registered in Switzerland, WSB America Operations Ltd, which was entirely managed by Mr Ho Kim as WSB AO Ltd sole Board member, with the support of his niece officiating as co-ordination director."

Further and better particulars are required from Mr. Wu and AIBA directors on this explanation. For the parent Company AIBA to be ignorant of the details of a loan of US$10 million would be astonishing. In regular circumstances, it would require lawyers and accountants to be involved to safeguard the interest of all parties involved.

 Yet, Mr. Wu has said, “The directors WSB America Operations Ltd, which was entirely managed by Mr Ho Kim as WSB member with the support of his niece officiating as co-ordination director."

According to a copy of the original loan agreement, obtained by the NY Times from a member of AIBA’s executive committee who was disappointed with Mr. Wu’s lack of transparency, Mr. Wu personally signed for the loan, which was made to an AIBA subsidiary.

Surely it is not being said a US$10 million dollar loan to WSB, was allowed to be arranged by a subsidiary Company to AIBA and this was not discussed by AIBA director’s at Board meetings of AIBA?

If WSB is not a subsidiary AIBA how does Mr. Wu. explain to pro’ boxers, their managers, amateur boxing clubs, the media and any other, including parents, who  wrongly believed WSB was an integral part of AIBA but did not come under the AIBA umbrella of responsibility?

If the Mr. Wu explanation is correct what was/is the explanation regarding insurance for the boxers boxing under WSB promoted events.

a) Who was/is the insurance policy holder for WSB?

b) How come WSB appears in the AIBA logo?

d) Surely, there was a written agreement setting-out the terms related to the loan of US$10 million?

e) What are the details of the loan contract and do they satisfy PwC?

f) Presumably, PwC has examined any such contracts?

SUCH VITAL MATTERS DO NOT ALLOW ‘CHERRY PICKING.’

The Mr. Wu statements continue: “AIBA will not tolerate any interference with the field of play and in the face of the ongoing attacks from vested interests both with and without direct links to the organisation.”

The US $10 million has been described as a loan and was made by Benkons MMC; a commercial conglomerate based in Baku, Azerbaijan to set-up the World Series Boxing (WSB) a Swiss registered Company.

THE EMPHASIS HAS TO BE ON THE WORD ‘LOAN.’ THE DICTIONARY DEFINITION OF LOAN IS: ‘SOMETHING LENT OR FURNISHED ON CONDITION OF BEING RETURNED, ESPECIALLY A SUM OF MONEY LENT AT INTEREST.”

However, there is no public mention of the base details of the loan made by BenkMCons M and the agreed interest rate. Who agreed to the interest rate? How much of the loan has been repaid since 2015. If nothing has been paid has Benkons MMC referred the matter to their lawyer(s) or a debt collection agency?

Has AIBA been officially advised in correspondence of any default on repayment by WSB, which is presuming there is in place such a necessary clause in the loan agreement?

To suggest there was no written agreement prepared by professional lawyers and accountants is too remarkable for words. If customary professional lawyers and accountants were not involved; why were they not involved?

Even a modest interest rate on a loan of US $10 million would increase the loan by a substantial amount of money over a period of time, especially a period measured in years. No details appear to be available on any repayments made on the loan and the present state of the loan.

If no repayments on the loan have been made then a low rate of interest on a loan set, for example,  at 2.5% would cause the debt to rise by 10% every four years, which is the period of time between each Olympic Games.

If compound interest is charged the debt would obviously be further increased.

As a commercial organisation it is difficult to accept Benkons MMC solely decided on a charitable act to allow AIBA to make more money from boxing – with no commercial gain for Benkons MMC?

Nevertheless, weird and wonderful situations do occur and is this example?

A reported statement by AIBA alleges: "AIBA wishes to reiterate, as it has done for many months and in several media outlets, the lingering issue of an Azeri loan is under discussion in complete transparency with the creditors.

Does this imply there is more than one creditor?

Mr. Wu is reported to have stated: "AIBA does not deny a loan was granted by an Azeri company in order to help fund the launch of the World Series of Boxing in America. 

He continued: "Said loan was, however, granted to a company registered in Switzerland, WSB America Operations Ltd., which was entirely managed by Mr Ho Kim as WSB AO Ltd sole Board member with the support of his niece officiating as co-ordination director.”

"AIBA reiterates its unswerving commitment to the development of boxing using the most transparent and sustainable means possible, for the benefit."

If WSB is a separate Swiss Limited Liability Company (gmbh) then it is not an AIBA issue and the creditors would have no beneficial gain.

AIBA, according to their earlier statement, said the loan was granted to a Company registered in Switzerland, WSB America Operations Ltd. This Company, according to Mr., WSB was entirely managed by Mr Ho Kim as WSB AO Ltd sole Board member, with the support of his niece officiating as co-ordination director."

If only due to the enormous size and importance of the US$10 million loan it is beholden upon AIBA to issue a full Board signed statement. Amateur boxing is far too important a beneficial sport to youth and adults to be administrated in such a controversial manner.

The NY Times further reports; “Some former AIBA officials noted that the loan coincided with an uptick in medals by Azerbaijani boxers.”

Coincidence or otherwise the situation becomes curioser and curioser, as Alice in Wonderland might have suggested.

A further consideration is does the weight of the debt to Menkons MMC mean WSB is trading whilst insolvent?

Trading whilst insolvent is illegal.

 

The NY Times has stated: It appears WSB could not account for almost half of a $10 million (£8 million/€9 million) loan allocated in 2010 by the Baku-based Benkons MMC conglomerate.

PwC's report was commissioned by AIBA in June 2015 following a request from the International Olympic Committee (IOC).

It has not yet been published, despite it reportedly having been completed a year ago.

"AIBA does not deny that a loan was granted by an Azeri company in order to help fund the launch of the World Series of Boxing in America.

"Said loan was, however, granted to a company registered in Switzerland, WSB America Operations Ltd, which was entirely managed by Mr Ho Kim as WSB AO Ltd sole Board member, with the support of his niece officiating as co-ordination director."

Further and better particulars are required from Mr. Wu and AIBA directors on this explanation.

For the parent Company AIBA to be ignorant of the details of a loan of US$10 million and the ongoing details of such loan would be astonishing. In regular circumstances, it would require lawyers and accountants to be involved to safeguard the interest of all parties involved.

 Yet, Mr. Wu has said, “The directors WSB America Operations Ltd, which was entirely managed by Mr Ho Kim, as WSB member with the support of his niece officiating as co-ordination director."

 "Said loan was, however, granted to a company registered in Switzerland, WSB America Operations Ltd, which was entirely managed by Mr Ho Kim as WSB AO Ltd sole Board member with the support of his niece officiating as coordination director."Mr. Ho Kim was fired from his as position ordination director and replaced by Karim Bouzidi in June 2015.

It is not the 'managers' of a limited liability Company who are ultimately responsible for the administration, especially in the financial matters, but the directors.

No doubt, AIBA will ensure the names of the directors will be placed in the public domain

Mr. Bouzidi has also since left AIBA. 

AIBA President C K Wu sacked Ho Kim as executive director in 2015.

AIBA President C K Wu claims the "initial PwC report did not interview one key representative of the governance at the time, Mr Ho Kim".

Their statement adds: "Consequently, many of the findings in the PWC report require further investigation. 

"This is why AIBA, which has taken the initial step of commissioning the report and is addressing its contents in the appropriate manner, has requested an additional report to confirm the financial discrepancies in the initial findings.

"AIBA's former executive director Ho Kim found the Azeri investor and enjoyed wide discretion.” This would to be an incomplete statement and further and better particulars are necessary.

THIS EXPLANATION REQUIRES FURTHER DETAILS AS ALL DIRECTORS OF A LIMITED LIABILITY COMPANY ARE INDIVIDUALLY, AND COLECTIVELY, RESPONSIBLE FOR DECISIONS MADE ON BEHALF OF THE COMPANY

Many AIBA registered affiliates are beneficiaries of taxpayer's money. The UK amateur boxing associates all receive taxpayer’s money. This means full details need to be obtained by the UK on the financial state of AIBA and WSB, without delay.

WSB America Operations Ltd, is a Swiss Company therefore the Company details are not in the public domain. However, if Mr C K Wu wants to rely upon facts then he has to make known the exact details related to WSB America Operations Ltd., and subject them to scrutiny,

The NY Times further reports; “Some former AIBA officials noted that the loan coincided with an uptick in medals by Azerbaijani boxers.”

It all becomes curioser and curioser.

A further consideration is does the weight of the debt to Menkons MMC mean AIBA is trading whilst insolvent? Trading whilst insolvent is illegal.

Apparently, WSB could not account for almost half of a $10 million (£8 million/£9 million) loan allocated in 2010 by the Baku-based Benkons MMC conglomerate.

PwC's report was commissioned by AIBA in June 2015 following a request from the International Olympic Committee (IOC).

It has not yet been published, despite it reportedly having been completed a year ago.

"AIBA wishes to reiterate, as it has done for many months and in several media outlets, that the lingering issue of an Azeri loan is under discussion in complete transparency with the creditors."

"AIBA does not deny that a loan was granted by an Azeri company in order to help fund the launch of the World Series of Boxing in America. 

"Said loan was, however, granted to a company registered in Switzerland, WSB America Operations Ltd, which was entirely managed by Mr Ho Kim as WSB AO Ltd sole Board member with the support of his niece officiating as coordination director."

There has to be serious doubt the repayment on the loan made by Menkons MMC.

If the claim the loan was a genuine generous offer of help then Menkons MMC will almost certainly sue for repayment plus interest on the money they loaned.

There does appear to be evidence AIBA is, at least, is. at least, partly responsible for the repayment of the US $10 million. This has to mean the UK registered members of AIBA have to seek legal advice on their situation and the support of taxpayer's has to cease until the legal position is resolved.

Mr. Kim was fired from his position and replaced by deputy Karim Bouzidi in June 2015

Mr. Bouzidi has also since left AIBA. 

AIBA President CK Wu fired Ho Kim as executive director in 2015.

AIBA, whose President is IOC Executive Board member C K Wu, claims the "initial PwC report did not interview one key representative of the governance at the time, Mr Ho Kim".

Their statement adds: "Consequently, many of the findings in the PwC report require further investigation."#

"This is why AIBA, which has taken the initial step of commissioning the report and is addressing its contents in the appropriate manner, has requested an additional report to confirm the financial discrepancies in the initial findings.

"AIBA's former executive director Ho Kim found the Azeri investor and enjoyed wide discretion in the negotiations and implementation of the transaction. 

"Mr Kim acted autonomously in the establishment of WSB America Operations Ltd and was the sole Board member of said company, which completely managed the World Series of Boxing in the United States and Mexico."

They claim "actions will be taken in due time should any of the allegations made in the article regarding the loan of $10 million - and its use by WSB America Operations Ltd - are eventually proved to be correct. 

"AIBA is determined to act decisively and is allocating appropriate resources to that matter." ~

 

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