How Athletics Kenya squeezed Sh18m out of ministry

Kenya’s athletics officials duped the government into releasing Sh18 million to cater for travelling and accommodation costs of the country’s contingent to the 2011 World Athletics Championships in Daegu, South Korea, we can reveal.

This was despite the fact that the organisers were meeting all expenses related to the tournament.

Documents in our possession indicate that Athletics Kenya (AK) officials had initially asked the government to disburse Sh32 million to meet the travelling and accommodation costs of the contingent and even threatened to boycott the championships if this was not done.

Officials did not mention to the government in the correspondence seen by the Nation anything to do with funding from the World Championships Local Organising Committee (LOC). 

The Ministry of Youth Affairs and Sports, however, insisted it could not afford that amount and also demanded the federation furnish it with all necessary documentation before it could release any funds.

SUBMIT INVOICES FROM AIRLINE

In a letter to AK Secretary-General David Okeyo dated August 11, 2011, Sports Permanent Secretary James Waweru asked AK to submit invoices from the airline which was to fly the contingent to the games for the government to intervene.

AK had demanded Sh54,008,000 for the trip, according to the PS.

“I have noted that you had asked for Kshs27,004,000 for documentation, visas and passports worth Kshs100,000, air tickets 84 pax [persons] worth Kshs20,299,000 and overseas allowances for 70 athletes and 14 officials both for Sh6,605,000,” the PS noted.

“I have scrutinised my (budget) vote and I have noted that we cannot issue you with a grant of Kshs27 million.

“Secondly, under Government Financial Procedures you must furnish me with the details of the 70 athletes and 14 officials by name and ID cards.

“You should also submit to me the invoice from the airline, which must have been competitively sourced, to enable me decide what to pay from my side without transferring a grant to you.”

BREAKDOWN OF SH32 MILLION

A day later, Mr Okeyo wrote back to the ministry giving a breakdown of Sh32 million and warning that delay in the release of the funds would lead to the cancellation of the trip.

The breakdown indicated that Sh19.2 million would go towards air tickets, Sh5.7 million to meet the cost of residential training at the Moi International Sports Centre, Kasarani, while Sh7.3 million would be for allowances for athletes and officials.

“There are many more items like medicine, ceremonial uniforms, passports processing, local transport of athletes to training venues and which were captured in our initial proposal,” Mr Okeyo wrote to the PS.

“However, on the understanding that your commitment during the camp launch on 10/8/2011 was confirmed at Kshs27 million, Athletics Kenya will meet all other costs including the amount over and above Sh27 million.

“Kindly expedite action on this issue as the airlines are threatening to cancel the air tickets if payment is not received immediately.”

Documents seen by the Nation indicate that the ministry later scaled down its contribution to Sh18 million.

Interestingly, even as Mr Okeyo made requests to the government, the federation had been notified almost a year earlier that the organisers of the  games would foot all the bills.

MONEY RELEASED

Former AK treasurer Joseph Kinyua confirmed the government released money for the Daegu trip.

“We received Sh18 million from the government towards preparations,” Kinyua said.

A letter from the International Association of Athletics Federations (IAAF) dated August 25, 2010 indicated that the Local Organising Committee (LOC) would cater for the transport and accommodation costs of all athletes taking part in the championships.

“All athletes competing in the IAAF World Championships for Member Federations which are in Good Standing with the IAAF will benefit from economy class travel and full-board accommodation in the Athletes Village (apartment style — single, twin and triple rooms) paid for by the LOC for a maximum of 13 nights during the period from 23 August (arrival) until 5 September (departure),” the IAAF letter stated.

“The Organising Committee of the World Championships in Athletics is financially responsible for the economy class travel of all competing athletes from their home country to the Championships and back.

“If the Organising Committee agrees, the IAAF will make all the travel arrangements for teams and the First Congress Delegate.” The IAAF would later write to AK informing the national federation that it was in the process of reimbursing the monies spent on travel and accommodation of the Kenyan contingent to the games.

READJUSTED FIGURES

“During the World Championships in Daegu we gave the Team Leader of your Federation a Financial Statement showing your final balance for Daegu. He signed the document on site.

“However, since the real number of athletes who participated in the Championships is different from the number shown on the statement you received on site we have readjusted the figures accordingly  and you will find a corrected Financial Statement on page 2,” reads a letter from IAAF dated November 22, 2011 and signed by the IAAF Director of Corporate Services Charline Horing.

“On Page 4 is your statement of account as at November 16th 2011. You will notice that the balance shows a credit in the amount of US$85,833.53 [Sh7.3 million]; this amount will be transferred to the bank account of your Federation shortly.” There is no evidence that the federation, upon being reimbursed by the IAAF, returned the money to the government.

The revelations that the local athletics leadership leaned on the government into parting with millions of shillings for an event that was fully sponsored is likely to dent its reputation as arguably the most successful and probably one of the few well-run sports organisations in the country.