Boxing Federation Fights Accusations, IOC

(ATR) The IOC has stopped payment of about $6 million due from the Rio Olympics over concerns with governance.

The crisis comes as AIBA finds itself ensnared in a complicated web of controversies. Inside the ring, the integrity of judges and referees at the Olympics is once more under suspicion. Outside the ring, accusations of financial mismanagement, fraud, and corrupt governance.

The drama may reach a climax over the next three days in Montreux, Switzerland, where leaders of the federation meet. A special congress on Dec. 20 is expected to deal with still unspecified changes and reforms that are supposed to address some of the issues bedeviling AIBA and its president, C.K. Wu.

The matter of the IOC money may loom largest as Wu and his colleagues assemble in Montreux. The money is the second of three tranches that the IOC is supposed to distribute to AIBA as its share of TV revenues from the 2016 Olympics. In September, the boxing federation received the first tranche worth 40 percent of the $17 million share. A third tranche covering the remaining 20 percent is payable in 2017.

"Following our request, the IOC has received an audited report by PWC concerning AIBA and is now evaluating its findings," is the explanation offered to Around the Rings by the IOC.

"This evaluation will also take into consideration the decisions being taken during the weekend by AIBA concerning its governance and their implementation," says the IOC statement.

The withholding of payments to federations is an uncommon step by the IOC, taken only when there’s serious concern. For boxing, this has happened once before, during the corrupt reign of Anwar Chowdhry (1986 - 2006). At the time, boxing had lost its IOC funding over judging failures.

AIBA has yet to respond to a request for comment on the IOC action.

The PWC report referenced by the IOC is a confidential 40-page document that the business consulting firm produced in 2015 for AIBA. The subject of the study was a $10 million loan made in 2011 to the federation from an Azerbaijan company.

Ostensibly intended to finance the operations of the floundering World Series of Boxing Americas franchise, the loan has not been repaid, even though it was due in 2013.

The PWC report raises a range of questions about the propriety of the loan; who negotiated the terms, and ultimately, where did the money go?

Besides these issues with the loan, Wu and AIBA are now dealing with an incendiary letter to the national federations written by Ho Kim, fired by Wu in 2015. The 16-page letter is a full-barreled salvo, alleging gross misconduct and duplicity. It could raise IOC ethics questions for Wu, who is an IOC member and holds a seat on the IOC Executive Board.

Wu says Kim handled the negotiations and terms of the loan and is responsible for how it was spent. Kim counters that the AIBA president was fully involved and aware of the loan.

AIBA hasresponded with a Dec. 17 statement that opens by terming Kim "a disgruntled employee of AIBA" with the "intent to destabilize our International Federation and the sport of boxing in general".

"He is exhibiting a full contempt for the concept of truth and for his obligations towards AIBA but this is an attitude most of you have experienced when he was in charge of AIBA daily operations," says the AIBA statement. Kim was fired from AIBA because of a staff revolt, Wu said at that time.

"Most of the allegations now made by Mr. Kim are wrong as he tries to dissimulate his personal misconducts under groundless accusations. Therefore, AIBA is already preparing a criminal complaint, which will result in a full-fledged investigation of the facts and of all the people involved, and which will end up by sanctioning any criminal wrongdoings perpetrated against our International Federation," says AIBA.

"Boxing deserves our best effort to enhance its reputation, commit to a transparent governance staying true to its core values in particular when Mr. Kim’s only objective is to tarnish the image of our sport, criticize the entire AIBA family and disrespect its stakeholders," says the statement.

Kim’s letter to the federations dwells mostly on the circumstances of the Azerbaijan loan. Kim also alleges that Wu used AIBA funds in his unsuccessful campaign for IOC president in 2013. Kim also raises questions about spending by Wu on office and travel expenses.

To view the letter from Ho Kim to the national boxing federations click here.

To view the AIBA response click here.

Written by Ed Hula.