Zimpapers Logo

to the tune of US$587 461 at the end of last year and the team’s financial situation is believed to have worsened in the past six months.

The Harare giants are technically bankrupt, weighed down by growing debts and reduced income sources, and the club’s failure to make an impact in the Champions League this year is likely to worsen its financial plight.

Although Dynamos secured a US$100 000 sponsorship package with BancABC recently, the club’s audited financial statements for the year ending December 2010 show a club that is choking in debt and could struggle to come out of the quagmire.

DYNAMOS FOOTBALL CLUB

• DeMbare directors turn screws on Munetsi executive
• Munetsi unfazed
  
• DeMbare executive booted out
  

Club chairman Farai Munetsi – whose status is under dispute with some directors saying he was booted out last Saturday – has also come under fire for failing to live to the promise he gave the auditors that his executive had sponsors with enough funds to help them reduce the debt.

Audited financial statements, produced by Xenia Business Services, showed a sad picture of a giant club that was now on its knees as it struggles under the weight of the financial challenges.
“The club’s total liabilities exceeded the total assets by US$587 461,” said the auditors in their report.

“The executive committee indicated that the club has sponsors who have set aside adequate funds for the club to successfully continue its operations and reduce its liabilities to acceptable levels.”
Dynamos’ current liabilities, as of December 31 last year, were pegged at US$881 766, with creditors owed US$697 473 and a bank overdraft of US$184 293.

DeMbare banked US$523 019 from gate-takings during the year under review, received US$455 660 in prize money from Caf, US$175 550 from sponsors, US$3 250 from the sale of regalia for a total income of US$1 284 874.

But DeMbare’s total expenses were US$1 899 915, with salaries and benefits chewing US$363 352, signing-on fees taking US$11 700, airfares gobbling US$195 076 while direct match expenses were US$303 070.
Only US$2 962 was spent on junior teams, showing the executive’s reluctance to invest in developing its own talent.

DeMbare’s deficit for the year was US$615 041.
With the club’s leaders locked in a boardroom battle, the saga took another twist yesterday with long-serving director Bernard Marriot Lusengo insisting that they would stick with the decision to fire the executive led by Munetsi.

Lusengo claimed that it was a constitutional and legal move that was taken by the majority of the board.

A day after Dynamos board of directors chairman Richard Chiminya vetoed moves to oust Harare business executive Munetsi and his executive, Lusengo said the directors of Dynamos Football Club (Pvt) Ltd would stand by their June 23 resolution, which was also reiterated at ano-ther meeting two days later.

Lusengo, who produced minutes of the indaba where the executive was fired, also maintained that the Dynamos board would now go ahead with announcing a new executive that would soon take over the administration of the club.

A founding member of the team, Lusengo also said he had been unanimously elected the board of directors’ acting secretary at a meeting on May 6.
Lusengo reckoned that what was more important, however, was the fact that the meeting that resolved to fire the Munetsi executive was “procedural and was even chaired by Chiminya.

“I did not impose myself as the acting board secretary . . . that decision was actually taken by the board through a vote on 6 May.
“During that meeting, Rundaba (Robson) proposed my name for the post and Mkwesha (Freddie) seconded and I was declared unopposed.

“I was only appointed after Chandamale who was then acting secretary had an altercation with Chiminya and had been suspended from that post,” Lusengo said.
Minutes produced by the club supported Luse-ngo’s claims.

Dynamos, Lusengo also said is “collectively owned by the founders and former players as validated by the Sport and Recreation Commission.
“Chiminya only chairs the meetings and the decisions of the majority carry the day and during that meeting of 23 June 2011, it was the over whelming majority decision to fire the executive that carried the day”.

According to the minutes released by Lusengo yesterday, Chiminya chaired the June 23 indaba with his deputy Freddie Mkwesha and directors Owen Chandamale, Shacky Chitimbe, Freddie Muzuva, Robson Rundaba and Charles Gwatidzo present.

Dynamos chief executive Casper Muzenda also attended the meeting.
The minutes also indicated that the sole business of the indaba held at the Dynamos offices at the National Sports Stadium was to discuss the dissolution of the executive.
“The meeting was convened to discuss the issue of dissolving the executive committee. Mr. Rundaba proposed and was seconded by Mr. Lusengo that the executive committee be dissolved.

“Since there was no counter proposal, all members agreed.
“Mr. Chiminya then pleaded with the other directors not to dissolve the executive committee. The directors turned down his request.
“Furthermore Mr. Chiminya requested the meeting to invite the shareholders to attend the board meeting on Saturday the 25th June 2011, at 10am, at the club offices.

“There being no other business the meeting closed at 1745hrs,” read the minutes which were signed by Lusengo.
Lusengo was also the author of the letters of dismissal that were sent to Munetsi and his executive.
He also wrote another letter to Premier Soccer League chief executive Kenny Ndebele yesterday reiterating that they had had fired the Munetsi leadership.

The former Dynamos organising secretary also produced minutes of the June 25 extraordinary meeting at which the decision to fire Munetsi was upheld while the board also resolved to hold elections in March next year.

“The purpose of the meeting was to deliberate on the issue of dissolving the executive committee.
“Mr. Chiminya informed us that when the Patson Moyo led executive committee was fired there were unpaid debts in the club.

“He said some board members reported to the police that some funds were missing in the club but nothing has been heard up to now.
“He asked the members not to dissolve the present executive until the police make a determination on the missing funds (from the Patson Moyo executive).

“Mr. Rundaba advised that the meeting should deliberate on the agenda and not about the Patson Moyo executive.
“He said the present executive is very divided and cannot work as a unit. He also said when people joined the club they found sponsorship in the club.
“Mr. Chiminya blamed the treasurer Mr. Mbewe for the club’s debts.

“Mr. Muzuva asked why Mr. Chiminya why he wanted the discussion to dissolve the executive reversed.
“He asked for a vote on the matter and was seconded by Mr Chandamale. After a discussion it was agreed that there was no need for a vote since there was no objection from the members.

“Mr. Muzuva said we should start making new appointments of the new executive.
“Mr. Chiminya asked whether there were people already in place to assume executive positions. Mr. Muzenda said the most important people on the executive are the chairman, secretary and treasurer.

“It was agreed that the appointments would be made on Tuesday 28th June 2011 after consultations with some prominent people,” read part of the minutes.
It is against the background of these minutes, Lusengo said that his board had been surprised to hear Chiminya, “making a U-Turn” and claiming that the decisions were unprocedural.

Lusengo also said he had noted with concern the comments made by both Chiminya and Muzenda on the bid to restructure the Dynamos board which their chairman believes is the “root cause of problems bedevilling Harare giants”.

“Muzenda is off-side and out of order because as a CEO he cannot talk about the issues related to the restructuring of the same board that appointed him and which he should be answerable to.
“It must also be noted that this is not the first time that our board chairman has gone against the board resolutions.

“But we are going ahead with announcing a new executive. The executive that we are going to put in place must be in office as soon as possible because the PSL transfer window is now open”.
The PSL mid-season window opened yesterday and will run until July 31 and Dynamos whose main weakness has been their misfiring attack are expected to bring a number of players to widen coach Lloyd Mutasa’s selection base.

Lusengo also claimed that apart from allegedly accruing a huge debt for Dynamos, the Munetsi executive was being accused of failing to properly cater for the welfare of the club’s players especially those on the injury list.

“The new executive should attend to the neglected players like Guthrie Zhokinyi and David Kutyauripo,” Lusengo said.