Sascoc faces liquidation demand

THE EMBATTLED leadership of the SA Sports Confederation and Olympic Committee were dealt another blow when Highbury Media served court papers demanding that the body be placed under liquidation due to its inability to pay debts totalling R4.7 million.

Highbury has been the media partner of Sascoc since 2009, with the contract extended in 2013 to include the general media and communications services, the publication of a quarterly print magazine, and the design, development and management of the Sascoc website and digital platforms.

Highbury managing director Tony Walker has told Independent Media that the payments stopped coming 10 months ago.

Walker also said the relationship soured when Highbury refused to grant a R3m beach volleyball sponsorship with former chief executive Tubby Reddy.

The sponsorship was not related to Sascoc, and Highbury could in no way justify an involvement in such a sponsorship.

Reddy, who was dismissed as Sascoc chief executive last year, had formerly served as president of Volleyball SA.

“The relationship, from the outset in 2009, was always good, until we (Highbury) expressed no interest in committing to a beach volleyball tournament in the Free State.”

“It was from then on that the payments slowed and the relationship broke down,” said Walker.

“It has now been about 10 months since they have not paid.

“We had made every attempt to resolve the situation and to find a solution in the payment structure. Unfortunately, it has been in vain.

“Through this court process we want to get paid. We have had to retrench and lay off people ourselves and the money (R4.7m) is not insignificant,” said Walker.

“They can’t pay their bills; they were funded exclusively through the Lotto and never really pursued any commercial deals. When the Lotto funding dried up they came under hard times.”

“After Highbury sent a written demand for payment, it received a response from the interim management committee’s attorneys stating: “Prima facie view the contracts B1-B3 (of the above mentioned services) as an example of what the ministerial committee report identifies as wasteful expenditure and deficiencies in our client’s procurement of services.”

Highbury’s intention in its court papers was to show that six years of work under the current contract(s) and 21 magazines, as well as website and social media management services, cannot be deemed wasteful and their legal argument was that they have grounds to demand Sascoc’s liquidation.

The court date on the papers filed was set for March 13.