Wu Needs Own Checkbook to Challenge AIBA

(ATR) Olympic boxing’s Interim Management Committee says it will not pay for legal defense of its president CK Wu if he challenges the motion of no confidence brought against him by fellow Executive Committee members.

In a letter seen by Around the Rings addressed to Wu, International Boxing Association vice president Franco Falcinelli outlines the decisions taken by 13 of AIBA’s executives at its meeting in Moscow from July 24-25. President Wu attended the meeting but did not sign off on the decisions taken, namely the motion of no confidence against him and creation of the five-member IMC.

"We are of the opinion that your comments are misleading and not in the best interests of AIBA," Falcinelli tells Wu.

"The media reports and your failure to engage with us has forced us to seek access and control of the AIBA Headquarters office and we were of the view to reduce the impact on the employees that all should be given paid holidays until next Monday."

As chairman of the IMC, Falcinelli chose to shut down AIBA’s headquarters at the Maison du Sport International in Lausanne, Switzerland. ATR is told that since the morning of July 26, security forces have been stationed outside the office and have begun affixing locks to the office door and doors to AIBA’s server space.

AIBA executive director William Louis-Marie sent a statement denying the legitimacy of the IMC and challenging the shutdown, likely still operating in Wu’s corner as sides begin to form in what is shaping up to be a heavyweight legal bout.

"AIBA condemns in the strongest possible terms the latest tactics of its Executive Committee, under the unrecognized 'Interim Management Committee', to attempt to illegally seize control of the organization's headquarters in Lausanne on the morning of 26 July," Louis-Marie said.

Wu sent his own statement to AIBA’s 201 National Federations on July 27, providing his viewpoint of the Moscow meeting while glossing over the call for a motion of no confidence.

"As you are aware, there were certain EC Members who tried to make an issue during the meeting," Wu wrote. "And now they even have an unrecognized 'Interim Management Committee' and try to illegally control AIBA HQ. The building now is closed until a court decision.

"The action of the group of EC Members will find no legal ground. I have no doubt that justice will be on the right side."

In response, Falcinelli wrote to Wu, advising him to bring his own checkbook to any legal battle with AIBA.

"Please note that employees of AIBA are employed by the organization and not by any individual," Falcinelli said. "Any legal action that you may decide to take is a matter for you as an individual and should be funded by you."

At the heart of the dispute between the IMC and Wu is the mismanagement of AIBA's finances, with back-dated loans and investors seeking to end their contracts calling into question Wu's decisions as president. Wu passes the blame to former staff members and says an audit by KPMG showed that media reports surrounding unpaid loans are wrong.

"Through factual and documented evidence, KPMG testified that AIBA’s alleged responsibility to repay an FCIT investment of $19m is groundless, contrary to media reports," Wu said in his letter to NFs.

However, ATR has seen an email from an AIBA executive describing the KPMG report in Moscow. The executive said the report was strictly verbal and that AIBA currently is operating with a deficit of $6 million.

The IMC will begin meetings with all AIBA staff members on July 31 to try to get all parties back on the same page.

An Extraordinary Congress is now being planned that will provide Wu with an opportunity to clear his name before an official vote on his mandate as president is held. If a vote passes, Falcinelli would take over as president.

The International Olympic Committee says it is closely monitoring all of the he-said, she-said developments from both corners. ATR is told Wu is said to be receiving extra attention as an IOC member and president of one of the largest International Federations.

Written by Kevin Nutley

Forgeneral comments or questions, click here.

25 Years at #1: Your best source of news about theOlympics is AroundTheRings.com, for subscribersonly.