(ATR) For the second time in two weeks, international boxing federation AIBA faces media scrutiny over a $10 million loan from Azerbaijan. The money was to finance the AIBA World Series of Boxing operation in the U.S.
The Nov. 11 New York Times reports that emails and other sources seen by the newspaper may show that AIBA President C.K. Wu knew about the loan which has yet to be repaid.
AIBA has maintained that the 2011 loan was handled by Ho Kim, fired as executive director in June 2015 after a staff revolt.
The story is the second by the paper since Oct. 31 when it reported on a confidential report for AIBA by PwC. The report, seen by Around the Rings, paints a confusing picture of the Azeri loan. The PwC report says it appears that there is no accounting of how the money from the loan was spent, suggesting that a criminal inquiry might be needed.
The latest article says that sources indicate that Wu knew about the loan from negotiations to bank transfer.
AIBA press chief Nicolas Jomard says the New York Times has the story wrong.
"The New York Times article is replete with insinuations that AIBA fully rejects. In addition, the New York Times misrepresented the statements made by AIBA to the author of the article ahead of the new release," says Jomard in a statement.
He says the federation is exploring whether legal action will be taken.
"AIBA will verify with local counsel in New York if, as AIBA believes, the New York Times violated the relevant ethical and other rules applicable to the media in the United States and if the content of the article qualifies as slander or defamation under the applicable law. AIBA is particularly puzzled by the fact that the New York Times failed to report AIBA's investigation regarding the misuse of President Wu's electronic signature, and it is determined to stop the smear campaign launched against it," says Jomard.
Jomard and other AIBA officials have insisted to ATR that the loan and its consequences for the federation are entirely the work of Kim.
Ho Kim has told Around the Rings he believes Wu knew about the terms of the loan.
Jomard says that AIBA will press charges against Kim, who now resides in Korea.
"President Wu is determined to obtain justice for AIBA and to take all necessary measures for that purpose. As a victim of a financial and reputation damage, AIBA will press charges against Mr. Ho Kim with an aim to launch a criminal investigation, which will cast full light on the facts, which will determine if criminal activities were perpetrated to the detriment of AIBA in connection with the Azeri loan, and, eventually, which will serve to recover the damages suffered," says the AIBA press chief.
"We remind that Mr. Kim signed alone the first Memorandum of Understanding that eventually led to the loan. This loan was arranged for a separate legal entity from AIBA, WSB America Operations SA, which was operated solely by Mr. Kim as unique board member of said legal entity. It will be for the Justice to determine any potential criminal or civil liability," says Jomard.
In its Nov. 11 report, the newspaper says additional documents seen since its first story last week show that Wu was in touch with Kamaladdin Heydarov, an Azeri government official and president of the Boxing Federation of Azerbaijan two months before the loan was made.
Jomard responded that it was not unusual for Wu to be in contact with Heydarov as it is customary for Wu to communicate with national federation leaders.
The newspaper quotes from an email it received from Kim in which he said he was following the instructions of the AIBA president.
"He is not the person to sign any contract without understanding the terms and conditions," the paper quotes Kim. "When the investment funds were sent to the U.S.A., he approved all transfers. He does not trust no one in regard to the finance matters."
Jomard concludes his response to the newspaper article rejecting the notion of a quid pro quo for the loan that would result in boxing decisions in favor of Azerbaijan athletes.
"Lastly, the suggestions in the article are a hypothetical link between the loan and Azeri performances in the ring are unacceptable. AIBA will not tolerate any interference with the field of play and in the face of the ongoing attacks from vested interests both with and without direct links to the organisation, AIBA reiterates its unswerving commitment to the development of boxing using the most transparent and sustainable means possible, for the benefit of the entire boxing community," says Jomard.
Jomard has released a copy of the letter he sent to New York Times reporter Ken Belson on Nov. 10 which can be viewed at this link. The letter was written prior to the publication of the latest story on Nov. 11.
Written by Ed Hula.
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