News / National
Chiyangwa sheds light on new baby
09 Jun 2016 at 01:56hrs | Views
THE dissolution of Zifa at an extraordinary general meeting held in Harare on Saturday has evoked mixed feelings among Zimbabweans from different walks of life.
The 58 members of Zifa agreed to dissolve the deeply indebted association and formed a new organisation called National Football Association of Zimbabwe (NAFAZ).
Legal and moral issues have been raised over the sudden decision with people questioning when the idea was mooted, what happens to Zifa creditors and employees, and the fate of those sanctioned by the association for their alleged role in match-fixing.
Chronicle Senior Sports Reporter Sikhumbuzo Moyo (SM) yesterday asked NAFAZ president Philip Chiyangwa (PC) to shed more light on the highly contentious move.
SM: What prompted the dissolution of Zifa and formation of NAFAZ?
PC: It is a matter of public knowledge that Zifa's executive committee elected into office on the 5th of December 2015 inherited an association in a dire state of affairs, as it already had debts of around $6 million. On a daily basis, the association received multiple writs of execution issued by creditors against its movable property. The situation was unsustainable as there were no sources of income to cater for the association's daily needs, while offsetting debts owed to creditors. The association could barely meet the monthly wage bill of its employees.
Fifa has since cut funding towards the country's developmental projects on the basis that the funds would be attached in execution of judgments obtained against the association. No vibrant corporate wanted to associate itself with an organisation that constantly made news for the wrong reasons. It was clear within the first two months of coming into office that Zimbabwean football would not develop in any way given the appalling state of affairs of the association. After legal consultations it was established that Zifa was an insolvent entity given that its liabilities overwhelmingly exceeded the assets and its continued existence perpetuated an illegality.
Based on legal consultations made, it was then decided to engage Fifa as the foremost football body the world over, on the possible dissolution of Zifa in terms of Article 77 of its registered constitution with a view to constituting a separate entity to assume the role of administering football in Zimbabwe after the dissolution of Zifa. The new association would have its own constitution and structures different from those of Zifa. The idea is to have a debt-free association that subscribes to principles of corporate governance and generates income as a corporate brand thereby creating an environment that develops football in all parts of Zimbabwe. Fifa was amenable to the proposal on condition that Zifa be dissolved in terms of its registered constitution and the sequestration of its estate is effected in terms of the laws of Zimbabwe.
Article 77 of the Zifa constitution states that: "Any decision relating to the dissolution of Zifa requires a majority of three-quarters of all of the members of Zifa, which must be obtained at a congress specially convened for the purpose."
This means that when the extraordinary congress of Zifa members was convened on the 4th of June 2016 and a unanimous decision was obtained for the motion of dissolution of the organisation, Zifa ceased to exist with immediate effect from the midnight of the 5th of 2016 as agreed by its members. The decision of Zifa members is final and there can be no further question and there is no other way. In terms of Article 1.1 of its constitution Zifa was a private organisation of an associative nature, as such the question of its existence or dissolution solely rested on its members to the exclusion of any third party.
Consequently the non-existence of Zifa as of the 5th of June 2016 triggers section 30 (1) (a) (ii) of the Sports and Recreation Act, which calls upon the SRC board to direct the director-general to strike off Zifa from the register upon being formally notified of the dissolution. Section 30 (1) (a) (ii) reads as follows: "Discipline of registered national associations.
(1) Where the board considers that any registered national association —
(a) has ceased to operate as a national association; or….. the board may, after affording the association concerned an opportunity of making representations in the matter, do either or both of the following — (ii) direct the director-general to strike the association from the register."
The very fact that Zifa has permanently ceased to exist entails that it must be struck off the register in terms of section 30 (1) (a) (ii) of the SRC Act.
Dissolution of Zifa meant it was open to any interested citizens of Zimbabwe to gather and constitute themselves into an association for purposes of administering football in Zimbabwe. NAFAZ is a separate private body of an associative nature distinct from Zifa (which no longer exists) in that it has its own constitution and structures. Legally it cannot be said that Zifa is NAFAZ as the two are different.
NAFAZ has the right to approach the SRC in terms of section 29 (3) and (4) of the SRC Act which reads as follows: "Registration of national associations ………. (3) Every national association shall, within three months of the 1st September, 1991, or within thirty days of its coming into existence, whichever is the later, apply to the Commission for registration in the form and manner prescribed.
(4) As soon as is practicable after receiving an application in terms of subsection (3), the board shall consider the application and, if it is satisfied — (a) as to the suitability of the constitution and rules of the national association; and (b) as to the good faith of the officers and members of the national association; and (c) that the affairs of the national association will be properly managed; the board shall direct the director-general to cause the national association and its constitution and rules to be registered."
It is well within NAFAZ's rights as an entity with a separate legal personality to have its constitution registered with the SRC in terms of the above section. The precursor to registration of NAFAZ's constitution is its existence and it is a matter of fact that NAFAZ was established on the 4th of June 2016 and served its application for registration on the 7th of June 2016. NAFAZ legally and factually exists.
SM: When was the idea brought up?
PC: The idea was initially brought up back in February 2016 and relevant consultations were made with legal advisors, Fifa and the SRC.
SM: What happens to Zifa creditors and employees owed salaries?
PC: With regards to outstanding affairs of Zifa concerning its employees and creditors, a resolution was passed by the Zifa congress nominating Freddie Chimbari of Fremus Executor Services as the Trustee of Zifa's assets for purposes of sequestration (the action of taking legal possession of assets until a debt has been paid or other claims have been met).
The trustee's role is to compile an inventory of Zifa's assets and call upon interested parties, which includes Zifa's employees and creditors, for purposes of distributing the residue assets amongst them.
The sequestration process is akin to the burial of Zifa as an artificial entity that died by the process of dissolution.
SM: Sanctions imposed by Zifa on match fixers?
PC: The sanctions imposed by Zifa on those facing charges of match fixing remain valid on the basis that, firstly, it is a standing resolution of Zifa in the same way the resolution to dissolve and appointment of a Trustee stands to this day. Secondly, whether or not Zifa exists, the ills perpetrated by those sanctioned violated the spirit of the sport of football.
The wrong was not committed against Zifa, but rather against the sport itself. As long as the sport of football continues to thrive, it remains an offence to fix matches whether NAFAZ exists or Zifa does not exist.
The 58 members of Zifa agreed to dissolve the deeply indebted association and formed a new organisation called National Football Association of Zimbabwe (NAFAZ).
Legal and moral issues have been raised over the sudden decision with people questioning when the idea was mooted, what happens to Zifa creditors and employees, and the fate of those sanctioned by the association for their alleged role in match-fixing.
Chronicle Senior Sports Reporter Sikhumbuzo Moyo (SM) yesterday asked NAFAZ president Philip Chiyangwa (PC) to shed more light on the highly contentious move.
SM: What prompted the dissolution of Zifa and formation of NAFAZ?
PC: It is a matter of public knowledge that Zifa's executive committee elected into office on the 5th of December 2015 inherited an association in a dire state of affairs, as it already had debts of around $6 million. On a daily basis, the association received multiple writs of execution issued by creditors against its movable property. The situation was unsustainable as there were no sources of income to cater for the association's daily needs, while offsetting debts owed to creditors. The association could barely meet the monthly wage bill of its employees.
Fifa has since cut funding towards the country's developmental projects on the basis that the funds would be attached in execution of judgments obtained against the association. No vibrant corporate wanted to associate itself with an organisation that constantly made news for the wrong reasons. It was clear within the first two months of coming into office that Zimbabwean football would not develop in any way given the appalling state of affairs of the association. After legal consultations it was established that Zifa was an insolvent entity given that its liabilities overwhelmingly exceeded the assets and its continued existence perpetuated an illegality.
Based on legal consultations made, it was then decided to engage Fifa as the foremost football body the world over, on the possible dissolution of Zifa in terms of Article 77 of its registered constitution with a view to constituting a separate entity to assume the role of administering football in Zimbabwe after the dissolution of Zifa. The new association would have its own constitution and structures different from those of Zifa. The idea is to have a debt-free association that subscribes to principles of corporate governance and generates income as a corporate brand thereby creating an environment that develops football in all parts of Zimbabwe. Fifa was amenable to the proposal on condition that Zifa be dissolved in terms of its registered constitution and the sequestration of its estate is effected in terms of the laws of Zimbabwe.
Article 77 of the Zifa constitution states that: "Any decision relating to the dissolution of Zifa requires a majority of three-quarters of all of the members of Zifa, which must be obtained at a congress specially convened for the purpose."
This means that when the extraordinary congress of Zifa members was convened on the 4th of June 2016 and a unanimous decision was obtained for the motion of dissolution of the organisation, Zifa ceased to exist with immediate effect from the midnight of the 5th of 2016 as agreed by its members. The decision of Zifa members is final and there can be no further question and there is no other way. In terms of Article 1.1 of its constitution Zifa was a private organisation of an associative nature, as such the question of its existence or dissolution solely rested on its members to the exclusion of any third party.
Consequently the non-existence of Zifa as of the 5th of June 2016 triggers section 30 (1) (a) (ii) of the Sports and Recreation Act, which calls upon the SRC board to direct the director-general to strike off Zifa from the register upon being formally notified of the dissolution. Section 30 (1) (a) (ii) reads as follows: "Discipline of registered national associations.
(1) Where the board considers that any registered national association —
(a) has ceased to operate as a national association; or….. the board may, after affording the association concerned an opportunity of making representations in the matter, do either or both of the following — (ii) direct the director-general to strike the association from the register."
Dissolution of Zifa meant it was open to any interested citizens of Zimbabwe to gather and constitute themselves into an association for purposes of administering football in Zimbabwe. NAFAZ is a separate private body of an associative nature distinct from Zifa (which no longer exists) in that it has its own constitution and structures. Legally it cannot be said that Zifa is NAFAZ as the two are different.
NAFAZ has the right to approach the SRC in terms of section 29 (3) and (4) of the SRC Act which reads as follows: "Registration of national associations ………. (3) Every national association shall, within three months of the 1st September, 1991, or within thirty days of its coming into existence, whichever is the later, apply to the Commission for registration in the form and manner prescribed.
(4) As soon as is practicable after receiving an application in terms of subsection (3), the board shall consider the application and, if it is satisfied — (a) as to the suitability of the constitution and rules of the national association; and (b) as to the good faith of the officers and members of the national association; and (c) that the affairs of the national association will be properly managed; the board shall direct the director-general to cause the national association and its constitution and rules to be registered."
It is well within NAFAZ's rights as an entity with a separate legal personality to have its constitution registered with the SRC in terms of the above section. The precursor to registration of NAFAZ's constitution is its existence and it is a matter of fact that NAFAZ was established on the 4th of June 2016 and served its application for registration on the 7th of June 2016. NAFAZ legally and factually exists.
SM: When was the idea brought up?
PC: The idea was initially brought up back in February 2016 and relevant consultations were made with legal advisors, Fifa and the SRC.
SM: What happens to Zifa creditors and employees owed salaries?
PC: With regards to outstanding affairs of Zifa concerning its employees and creditors, a resolution was passed by the Zifa congress nominating Freddie Chimbari of Fremus Executor Services as the Trustee of Zifa's assets for purposes of sequestration (the action of taking legal possession of assets until a debt has been paid or other claims have been met).
The trustee's role is to compile an inventory of Zifa's assets and call upon interested parties, which includes Zifa's employees and creditors, for purposes of distributing the residue assets amongst them.
The sequestration process is akin to the burial of Zifa as an artificial entity that died by the process of dissolution.
SM: Sanctions imposed by Zifa on match fixers?
PC: The sanctions imposed by Zifa on those facing charges of match fixing remain valid on the basis that, firstly, it is a standing resolution of Zifa in the same way the resolution to dissolve and appointment of a Trustee stands to this day. Secondly, whether or not Zifa exists, the ills perpetrated by those sanctioned violated the spirit of the sport of football.
The wrong was not committed against Zifa, but rather against the sport itself. As long as the sport of football continues to thrive, it remains an offence to fix matches whether NAFAZ exists or Zifa does not exist.
Source - chronicle
