AIBA Executive Director Tom Virgets reported today that the AIBA interim audit report mandated by President Gafur Rahimov has been completed and that the results are positive.
“Considering where we were one year ago, AIBA has made significant progress towards reducing its debt and has gone from a negative cash flow of over $2,000,000 annually, to a positive cash flow” said Virgets.
“Basically, the reports shows that we as an organization carry significant debts of over $16,000,000, and that the organization is dependent on the Olympic dollars in order to secure its future, but the positive side the report also shows clearly that with the Olympic money AIBA will have the financial resources to not only meet its obligations, but also eliminate AIBA’s debt and create positive equity by 2024”.
The report validates that the projections of AIBA’s finance department as presented to the AIBA EC were correct and not inflated as was past practice. It also demonstrates that when AIBA exercises discipline, the fiscal policies implemented by President Rahimov over the past 9 months work. AIBA will have decreased operating expenses by 50% while also reducing its debt by approximately ~$3,000,000 by years end.
It is not unusual for the majority of Summer Olympic programs to be dependent on Olympic dollars to sustain their programs, it is the goal of AIBA to generate enough revenue to be able to operate independent of Olympic funding.
“Once the IOC allows AIBA to move forward as the Olympic governing body, AIBA will be able to reduce our debt by an additional 4-5 million over the next 12 months”, predicted Virgets.