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Zimbabwe players on strike.

Timbo

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Pakistan in Zimbabwe 2013

Final ODI doubtful as Zimbabwe protest unpaid fees

Firdose Moonda
August 30, 2013

The deciding ODI between Zimbabwe and Pakistan is at risk of not happening because of a player strike over unpaid salaries. Zimbabwe's newly-formed players' union has decided the team will not take the field against Pakistan on Saturday unless the monies owed to them are handed over, as promised, today.
ESPNcricnfo has learned Zimbabwe's players were given a guarantee they would be paid on Thursday, August 28, and the money would reflect in their accounts on Friday. They arrived for training on Friday morning and, on realising none of them had received any money, aborted their training session.
A source close to the team confirmed some of them stayed on for a voluntary net but the players as a whole have banded together. "They want to get their point across and they want to make sure they get paid," the insider said. "If the money doesn't arrive today, then the chances are strong the game will not happen tomorrow."
The recent development comes just a day after some players told ESPNcricinfo the union and its members were satisfied with the arrangement they had reached with Zimbabwe Cricket at the beginning of the Pakistan series. Zimbabwe's cricketers refused to train the week before the series began because they had not been paid their July salaries. Instead, they formed a breakthrough players' union - the first of its kind for at least a decade - and demanded match fees, salaries and a percentage of ICC event reimbursements.
An eventual settlement with ZC was reached a week before the first T20. The Zimbabwe Independent reported the players had asked for US$5,000 per Test, US$3,000 per ODI and US$1,500 per T20 but those figures were too steep for ZC. It has since been ascertained that lesser amounts were agreed on.
A player, speaking on condition of anonymity, said yesterday he was "confident" of ZC keeping to their word and making payment. "We are satisfied with the arrangement we've reached and we believe we will be paid," he said. Less than 24 hours later, Zimbabwean players felt differently when they were greeted with empty bank accounts.
It is understood the players went to ZC's offices this afternoon to enquire about payment and sources remain hopeful some money will be handed over so the match can go ahead. However, they were also assured Zimbabwe's players were not going to compromise any longer and would only end their strike if they were paid. "It's about making things happen now and making sure they get some money," the source said.
While cash-flow issues have long dogged Zimbabwean cricket - they also threatened to strike in April this year ahead of the series against Bangladesh because of unsatisfactory daily allowances - lack of playing time has also been a concern for them and they seem to be willing to forego that in a quest to have financial obligations fulfilled. With the series level at 1-1, Zimbabwe have a rare chance to claim silverware but will not give themselves that opportunity unless they are paid.
There are also two Tests scheduled in the series, from next Tuesday. Zimbabwe's international programme for this year was due to conclude with a visit from Sri Lanka in October but the SLC have confirmed ZC asked for a postponement because of "unforseen circumstances". Zimbabwe's domestic season was due to progress as usual but the franchises have not been made aware of the exact amount of funding they will receive. As such, many of them have been unable to confirm contracts for coaches and players.

Firdose Moonda is ESPNcricinfo's South Africa correspondent
Feeds: Firdose Moonda © ESPN Sports Media Ltd.


http://www.espncricinfo.com/zimbabwe-v-pakistan-2013/content/current/story/667145.html


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I completely understand why the Zimbabwean players are striking, it's been two months since some of them were paid.


But honestly isn't the time coming where something drastic has to be done by the ICC? The player exodus has continued - Kyle Jarvis announced this week he was done with Zimbabwe and would be off to England - and whilst they jag the odd win like the one the other day against Pakistan they really are a basket case of a team.

Can anyone imagine this sort of unprofessional state or perpetual decline from Ireland if it were to recieve full status? As it stands a full strenth Ireland (including the likes of Morgan and Rankin) would wipe the floor with a full stregth Zimbabwe.
 

IanG

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Doesn't surprise me. This is country that doesn't even have it's own currency. Hence why the players are paid in US Dollars
 

Patorick

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Zimbabwe Cricket mismanaged $6m ICC loan

Tristan Holme and Liam Brickhill

March 3, 2014

http://www.espncricinfo.com/zimbabwe/content/story/724593.html


A protest over salaries by Zimbabwe's cricketers has again brought to the fore Zimbabwe Cricket's financial problems, which have continued despite at least US $9 million being loaned by the ICC to the board. ESPNcricinfo can reveal that one reason for the financial mess is that ZC's top leadership apparently used a $6 million loan from the ICC to enrich a bank on whose board they sit and ignored a key condition of the loan.

The issue also raises an apparent conflict of interest: ZC chairman Peter Chingoka, vice-chairman Wilson Manase and former managing director Ozias Bvute all sit on the board of Metbank, one of Zimbabwe's leading banks. While Chingoka is a non-executive director on the Metbank board, Manase is chairman of the board and Bvute is a major shareholder in the institution.

ZC said the main purpose for the ICC loan was to service the current facilities with local banks so that it could borrow again but the plan was upset by the status of the financial market. Chingoka also said it was "wrong and malicious" to allege loss of money when Metbank themselves were owed the most amount of money. The ICC, meanwhile, has declined to respond to specific questions.

Recent effects of that debt have been public knowledge: last September, ZC called off a proposed visit by Sri Lanka on financial grounds and the current domestic season was delayed by two months after players went on strike over unpaid wages. That matter raised its head again in negotiations over payments for the upcoming World Twenty20, which have been deadlocked but due to resume on March 3.

ESPNcricinfo has learnt that from 2009, ZC took out US dollar loans from Metbank at interest rates of more than 20% - and possibly as high as 24% - despite knowing the ICC could arrange loans at international interest rates far below those that Metbank was offering.

In December 2011, after learning of ZC's high-interest loans from Metbank, the ICC loaned the cricket board $6 million with one rider: the money should be used to immediately retire ZC's existing debt. Instead ZC deposited the money in a non-interest-bearing account with Metbank for more than five months. Metbank would have benefited from the interest accruing on their high-interest loan to ZC, as well as from having ZC's money in the non-interest-bearing account available to loan to third parties. ZC would, by the same deal, have lost out twice.

The ICC loan was received by ZC on December 14, 2011; on January 18, 2012, ZC repaid $75,000 to Premier Bank, and another $50,000 to the same institution on March 15. It then repaid $1,758,211 to Interfin Bank on April 23, 2012 and $829,167 to FBC Bank on May 3.


____________________________

Bvute accused of alleged insurance fraud

Ozias Bvute officially stepped down as ZC's managing director in June 2012, but in a press release issued at the time, Peter Chingoka confirmed Bvute would remain involved in the organisation. "I am delighted to confirm that his expertise will not be lost entirely to the game as he has accepted our request to be on hand to offer advice and consultation, particularly with matters pertaining to the commercial opportunities in the game," said Chingoka.

In February 2013 Bvute was appointed chairman of the board of Air Zimbabwe, the country's state-owned national carrier. Under his leadership, the board appointed Metbank as Air Zimbabwe's principal banker. The airline has since become embroiled in a series of corruption scandals, leading Transport and Infrastructure Development minister Obert Mpofu to sack Bvute and the board three weeks ago, saying it had failed to observe good corporate governance. A week later Bvute was accused of complicity in an alleged multi-million dollar insurance fraud by a sacked Air Zimbabwe secretary during a court hearing in Harare.

Bvute did not respond to a written request for comment, despite promising to do so during a telephone conversation.

____________________________

It was not until May 25 that $3,287,623 was repaid to Metbank. With that amount sitting in a non-interest-bearing account for five months and 11 days, Metbank could have earned in the region of $300,000 by loaning it out to third parties at an interest rate of 20%. ZC would have paid around the same amount in interest on its loan from Metbank, which was attracting interest of more than 20 %over that time period. Metbank could therefore have benefited by more than $600,000 from the two effects.

The knock-on effect of those decisions was that ZC's debt spiral continued, to the extent that the board had to seek a second ICC loan last month, worth $3m, so that it could pay the money owed to its contracted players, umpires, scorers and other employees. It was also able to announce its squad for the World Twenty20 after receiving an extended deadline from the ICC, and domestic cricket resumed last weekend.

The ICC knew about these indiscretions since at least March 2013, but did not take any action against the individuals involved. However, its latest loan came with the condition that ZC move its principal accounts away from Metbank, which it has now done. Media reports suggest the ICC is preparing to pay off ZC's debts to Metbank; that money will then be deducted from ZC's annual benefits from the ICC, which could amount to $25m over the next three years.


The malaise in Zimbabwe Cricket's finances has been a feature of the last decade. When Bvute took over the organisation's reins following Vince Hogg's resignation in 2004, ZC was $10 million in the black. The 2012 audit of their accounts shows net liabilities of $14,267,152, and total liabilities of $19,081,421.

The exact cost of the financial mismanagement to ZC is difficult to calculate because it is unclear how much they owed Metbank when the $6m loan from the ICC was granted. Media reports in Zimbabwe estimated a further $15 million will be needed to erase the cricket board's bad debt to Metbank.

It is also not clear whether ZC explained the conflict of interests involving Chingoka, Manase and Bvute when that loan was agreed upon, although the ICC should have been aware of it since the trio are listed as directors on the Metbank website and the facts are also stated in ZC's annual audits. The ICC would not have known that Bvute was a major shareholder unless it had been informed as such by ZC.

Asked to explain the reason for the delay in paying off the loan, Chingoka told ESPNcricinfo: "Zimbabwe Cricket postponed utilisation of the ICC loan proceeds. Given the unstable financial market situation then, there was a risk that utilisation of the ICC loan proceeds was likely to result in ZC's bankers failing to finance the renewed bank facilities. Zimbabwe Cricket's main purpose for the loan was to service the current facilities with local banks so that ZC could borrow again. However, as a result of the status of the financial market then, such an initiative was no longer achievable. Meanwhile, temporary extension for the other bank facilities had been sought on the understanding that payment for the facilities will be done once the liquidity situation improved. So it is wrong and malicious to allege loss of money when Metropolitan Bank themselves were owed the most amount of money."

Chingoka did not, however, answer questions on why ZC borrowed money from Metbank when it could have borrowed from the ICC at lower interest rates, or why ZC did not deposit the ICC loan into an interest-bearing account.

He did answer a question on the potential conflict of interest involving its top officials. "Non-executive directors (including Chingoka and Manase) at ZC guide the organisation's strategy and policy whilst operational issues e.g. relationships with banks, are for the management of the organisation." Bvute was managing director of ZC until June 2012.

Asked about the misuse of the ICC loan, an ICC spokesman said only that the organisation does not comment on financial matters relating to its Full Members. A further request for comment on the latest $3m loan, and the prospect of ZC being bailed out of its debt, received the same response.

Were the ICC to pay off the debt to Metbank, it would likely be helping to bail out the bank as well as the cricket board. Metbank has faced mounting liquidity issues over the past five months, which came to a head towards the end of last year when many customers were unable to access the money in their accounts. According to one newspaper report in January, the Reserve Bank of Zimbabwe has been monitoring Metbank under the Troubled and Insolvent Bank policy since November 2013. The report said that ZC's outstanding debt to Metbank was $15m, and that this large exposure was a prime reason for the Reserve Bank's concern over Metbank.

Liam Brickhill is a freelance journalist based in Cape Town. Tristan Holme is a freelance cricket journalist who divides his time between South Africa and Zimbabwe.
Beating a dead horse at this point, but come on.

The ICC (or Cricket SA) need to step in here and run the game in this country directly.

Something has to be done, they just can't keep throwing money at these jokers to protect their voting lines. They just can't.
 
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Maybe something will happen now that India have struck a deal with Australia & England? They may not need Zimbabwe's vote anymore.
 

madunit

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interest rates like that makes it sound like they'd put all their debt on a credit card.

amateurs.
 

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