National Olympic Committee of Kenya (NOCK) is taking steps to reduce its indebtedness that stands at over Sh800 million by the end of the year.
NOCK wants to reach an amicable solution with all parties owed millions of money in inherited debt. Top of its agenda is rescuing its Sh1 billion headquarters, Nock Plaza in Upper Hill, Nairobi.
NOCK president Paul Tergat, who addressed the media on the state of his committee since his team assumed office in September last year, revealed that they inherited a debt of more than Sh800 million from the contentious NOCK Plaza and an additional Sh 75 million from suppliers who claim to have provided services for the previous office holders.
“NOCK Plaza which is under construction has perhaps been the biggest challenge in our first year. The property was facing the auctioneer’s hammer but a lot of efforts have been made to getting a workable solution. Negotiations are at a final but critical stage to offer a win-win solution for NOCK and all parties owed hundreds of millions in the last two years,” said Tergat.
The building was estimated to cost Sh1.2 billion with Sidian Bank acting as the main financier by offering Sh800 million while NOCK was set to foot the remaining costs. It is reported that the bank pumped in Sh400 million into the project before construction stalled but the committee continued to incur expenses in escalation costs.
During an Extra Ordinary Session of the General Assembly in September, the executive mandated the Building and Property Committee with finding a solution within two months.
“We are at advanced discussions in concluding the matter and we hope before the close of the year, we can sign off with all these parties,” said NOCK acting secretary general Francis Mutuku.
Meanwhile, as ordered by the General Assembly when they took over from the previous regime, Tergat has confirmed that the forensic audit report on NOCK affairs for the preceding years will be released in a few weeks time.
“The audit process has not been smooth sailing and we have faced challenges of poor, insufficient and, at worst, no records in place. The preliminary report has indicated the depth of the previous problems but more importantly, recommendations have been made on how best to deal with the issues,” added Tergat.
Additionally, the committee has come up with a digitised way of running its kit supply from Nike in a bid to avert a repeat of the Rio 2016 Olympics scandal.