Critical cash position followed 2009 PMG

The Cook Islands Sports and National Olympic Committee (CISNOC) is working with government to resolve outstanding issues from the 2009 Pacific Mini Games (PMG).

In a letter to national sport federations, signed by CISNOC secretary general Rosie Blake, it is stated that the government is addressing PMG matters and actions are underway to complete the accounting, reporting and finalising of games activities.

These steps will bring to resolution the management of the organising committee affairs and outstanding obligations existing under the games host agreement between government, Pacific Games Council (PGC) and CISNOC including sports legacies which were a fundamental objective in hosting the 2009 games.

Blakes letter states factors affecting CISNOC accounts include its acceptance to manage the collection of PGC member countries per diems obligations, the settlement of 2009 PMG obligations, and delays in accounting and finalising games reporting, distributing games assets and surpluses.

The non-payment of PMG marketing fees and final distributions to CISNOC, disruption to post-games sponsorship legacies to CISNOC and a hiccup in the appropriation of sports programmes to CISNOC in the last and previous financial years have also affected accounts.

In summary a number of unforeseen conditions have occurred since the games (PMG) that have financially impacted on the liquidity of CISNOC. As a result CISNOC is in a critical cash position.

Per diems money paid by PMG member countries in 2009 to help cover the Cook Islands hosting expenses is alleged to be as much as $300,000 and has been the subject of a dispute since.

It is alleged CISNOC collected the money but failed to pass it on to the company established for PMG as required.

Cabinet is expected to discuss CISNOC issues this morning.