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Stoddart points to Constitution

Wednesday 17 August 2011 | Published in Regional


Triathlon Association president Geoff Stoddart is a sportsman with a keen interest in financial matters. He sparked heated argument at the last annual meeting of CISNOC, and at executive meetings is continually pressuring administrators for disclosure of details related to its financial affairs.

Stoddart, the former collector of revenues at MFEM, is not happy with CISNOCs proposed funding solution.

Yesterday he wrote to all of the sports federations under CISNOCs umbrella, with this proposal for the agenda of todays emergency meeting of codes. This is his letter unedited:

Kia Orana at CISNOC as well as all National Sports Federations & Outer Islands

The law of Incorporated Societies

is that such organisations must act within their rules. The rules are the constitution. What this means is that if rules are not abided by, then any decisions are not only able to be challenged but are null and void. One of the better authorities on the law of incorporated societies is Ms Angela Stevely a New Zealand barrister who has specialised in this field.

The constitution of CISNOC requires 7 days notice given for the calling of a special meeting of members. Only 2 days notice was given. What this means is that any member can before, at, or after the meeting give notice that they do not agree to the short notice and any resolutions purportedly taken at the meeting (even if it went ahead) are null and void.

I have only seen agreement come onto my computer screen from 2 federations out of the 31 the notice was despatched to. Therefore Tuesday morning consent for a short notice meeting is being withheld by most.

The matter of CISNOCs failing operating finances

has been simmering for a long time. The finance problems are not just in relation to the South Pacific Games 2011.

They relate to the ongoing position of CISNOC itself and dire warning of financial distress was written by the auditor Gary Smith in his report included in the papers handed out at the 7 April 2011 AGM. I also raised the matter at the Annual General Meeting pointing out that CISNOC appeared insolvent. I was criticised from the head table but made my points. Two prominent points were

1. The Financial Controller advised the $54,000 overdraft at BCI Bank would be gradually repaid out of operating receipts through calendar year 2011. We do not know if this has occurred.

2. The president advised that there were things happening that would assist CISNOCs finances and these would be announced very soon. Nothing has been announced.

The 2011 Pacific Games Noumea shortfall for airfares of up to $240,000

is the main issue the subject of draft resolutions for tomorrows meeting. However, the paper issued by CISNOC is lacking any reliable information on where the money will come from to repay a loan which is suggested as being guaranteed by the government.

The descriptions of any distributions to CINSNOC from winding up PMG 2009 Limited and sponsorship contracts entered into with Public Enterprises are of a doubtful nature and uncertain quantification, just as the 2011 CISNOC budget was.

I have fears that the loan repayment could be drawn from the Allsports Funding or Olympic Solidarity Funding and am of the view this would not be acceptable to most sports bodies which rely on it annually.

To access such would cut off most ongoing funding for one or two years and favour sports with participants at Noumea and disadvantage sports with no or few athletes going.

I would like to be assured that accessing the annual Olympic Solidarity Funding of USD 65,000 per annum and the approximate $NZD 160,000 of Allsports Funding will not occur.

Accordingly I ask for an additional resolution to be added to the resolutions for Wednesday meeting and I ask for all sports codes to consider supporting this request.

The ongoing viability of day to day operation of CISNOC is in doubt.

However, it is pleasing to note there are planned additions of two skilled and reputable persons from the government ranks to the board of CISNOC if there is room on the board for them.

The proposal is to allow the Financial Secretary Richard Neeves to have power of veto over certain matters but not Commonwealth Games and Olympic financial matters. This is where significant risk lies in that the existing board could channel funds which are intended for sports codes to repay a loan for earlier troubles. This must be avoided.

Alternative solutions for later servicing of the loan

It is clear that there was no Plan B for the SPG 2011 cost and the budget and expectations were uncertain and unrealistic from the beginning.

It is suggested that all athletes attending Noumea must have sold their quota of raffles and if not a higher athlete contribution be required.


I ask for the two resolutions hereunder to be added to the resolutions for Wednesday 17 August meeting and despatched by email circulation to codes by 4pm Tuesday 16 August.

In the event such additional resolutions are not entertained, I do not think the meeting will constitutionally be able to proceed.

I ask for codes and Island Federations support for what I see as very worthwhile additions to the resolutions

1. That it be agreed by the board that in repaying the said loan which might be receivable from the government of the Cook Islands, the Cook Islands Sports & National Olympic Committee will not look to the sources of funding known as Allsports Funds nor funding known as International Olympic Committee Funding to effect any part of the said loan repayment.

2. That the new Board members being the Financial Secretary and the Secretary of Internal Affairs be empowered to examine and recommend a resizing of CISNOC in order that its income and expenditure can be closely aligned to avoid financial distress. Furthermore that the strategic, operational and sport related programme plans as well as the level of staff and office resources be within the control of the Financial Secretary and Secretary of Internal Affairs.