AIBA Denies Link between Loan and Boxing Results

(ATR) International boxing federation AIBA rejects claims that an Azerbaijan loan to the federation influenced outcomes in the ring.

A New York Times report raises that suspicion in a Nov. 1 article on a previously secret report by PricewaterhouseCoopers. Nicknamed "Project Tiger" within AIBA, the report was carried out last year for the federation to investigate a $10 million loan that helped jump start the AIBA World Series of Boxing initiative in North America. Around the Rings has obtained a copy of the 39-page report which is marked as a confidential draft.

An email from AIBA vice president Rudel Obreja is quoted by the Times claiming that the loan was made to gain influence in boxing decisions for Azerbaijan athletes.

"We boxing people know that Azerbaijan was very interested in boxing medals," he wrote.

Since the 2011 loan, Azeri boxers have won four world championship titles and four Olympic medals, the Times notes.

AIBA press director Nicolas Jomard tells ATR the suggestion of bribery is unacceptable.

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

The PwC investigation did not raise bribery allegations but recommended that AIBA enlist legal representation for its findings.

"It is recommended that legal counsel be sought by AIBA as the actions, and non-actions, of some of the directors may contravene of the articles Swiss Criminal Code," the report states.

PwC provided AIBA president C.K. Wu with the draft report in October 2015. Since then it has been kept secret, even from members of the AIBA executive, says the Times.

The report outlines the process by which former AIBA executive director Ho Kim secured the loan from Azerbaijan company Benkons MMC which has yet to be repaid.

The report says no accounting could be found for how $4.5 million of the loan was spent by the federation. PwC says AIBA did not properly account for the losses in its bookkeeping, a possible violation of the Swiss criminal code.

AIBA tells ATR that Kim was responsible for the questionable loan practices described in the report.

"AIBA's former Executive Director Ho Kim found the Azeri investor and enjoyed wide discretion in the negotiations and implementation of the transaction," Jomard says. "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."

Kim tells ATR that he believes the PwC report makes it clear that AIBA president C.K. Wu was involved and aware of all major financial transactions at AIBA.

The PwC report states "In both agreements AIBA was represented by Dr. Ching-Kuo Wu, WSB AO SA by Mr. Ho Kim, and WSB SA were represented by both Dr. Ching-Kuo Wu and Mr. Ho Kim. At the time of entering into the agreements both Dr. Ching-Kuo Wu and Mr. Ho Kim were duly authorized to do so according to the Swiss Commercial Register."

Kim tells ATR he was not consulted during the PwC investigation and could have provided a more accurate representation of the Azeri loan.

"If I had been involved in explaining the facts, the PwC would have not concluded that the entire financial management was the violation of the Swiss Law," he says. "Thus, I felt helpless to watch AIBA and WSB images and reputations were damaged by lack of correct information and documents."

PwC says Kim was not interviewed during its fact-finding mission because he is no longer an employee of the federation. Kim was fired by Wu in June 2015 following a staff revolt against the former executive director.

Wu told ATR that every AIBA employee had filed grievances against Kim due to his demanding and sometimes demeaning management style. He was terminated after refusing to step down on his own accord.

AIBA also laments that Kim was not interviewed for the report and says the investigation will be continued to establish all of the facts. PwC also recommended in its initial report that the investigation be continued.

"It is recommended that the review be extended to assess whether the directors with knowledge of the agreement(s) acted with due care and pursue the company's interests in good faith as the directors may be personally liable for the losses suffered by the AIBA group of companies," the report reads.

It will now be up to Swiss prosecutors to decide whether to investigate the claims brought forth in the PwC report.

Written by Kevin Nutley

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