derick.khumalo
Bongani Ndlovu, Zimpapers Sports Hub
HIGHLANDERS Executive Member for Finance Nkani Khoza has revealed that the club is technically insolvent after recording a deficit of US$173 878, with liabilities exceeding its assets.
Presenting the club’s financial report at Sunday’s Extraordinary General Meeting (EGM), Khoza said Highlanders generated total revenue of US$833 365 against expenditure of US$1 007 243, leaving the club with a 17.9 percent deficit.
Khoza attributed the shortfall largely to the delayed fulfilment of financial commitments by some of the club’s financiers, coupled with a high monthly wage bill.
“Our expenses exceed our revenue, which mainly may be attributed to delayed fulfilment of commitments by some of our financiers and partly due to a high monthly salaries bill,” he said.
He said the financial statements paint a worrying picture of the club’s position.
“Our total revenue stands at US$833 365 and expenses stand at US$1 007 243, giving a deficit of US$173 878, which is 17.9 percent.”
Khoza warned that the deficit means the Bulawayo giants are technically insolvent.
“This revelation means that the club is insolvent as can be seen from the financial statements showing that our liabilities far exceed our assets,” he said.
Despite the bleak outlook, Khoza urged members to unite behind efforts to restore the club’s financial health.
“The unity of purpose should be the guiding principle to ensure the survival and continuation of our club,” he said.
