Government blamed for crisis

Government is partly being blamed by the Cook Islands Sports and National Olympic Committee (CISNOC) for its cash crisis.

CISNOC secretary general Rosie Blake, in a letter to all national sport federations, says CISNOCs 2011 budget relied on a government grant which was not received.

She says CISNOC expected money from the government in its 2011-2012 appropriation bill, and upon the bills passing and adoption in parliament last month CISNOC was left short-changed.

It is now having to borrow money from government to pay for Team Cook Islands to compete in the 2011 Pacific Games in Noumea, starting in a couple of weeks.

That loan is expected to be discussed in cabinet this morning.

The CISNOC 2011 budget recorded the grant from government, assumed to come from the 2011-2012 appropriation. This grant was not appropriated and the games budget is therefore seriously underfunded.

We have negotiated support from government of a loan to meet the team airfares budget. The remaining unpaid airfares are $190,000 (Air New Zealand) and $52,327 (Air Calin), Blakes letter states.

Conditions for the government loan, agreed to by CISNOC executive board members, stipulate the loan must be repaid from CISNOC revenue, including any distribution to CISNOC in the winding up of Pacific Mini Games 2009 Ltd and from sponsorship contracts entered into with public enterprise (State Owned Enterprises).

The loan shall be authorised by powers contained in CISNOCs constitution.

Temporary appointment of financial secretary Richard Neves and internal affairs, youth and sports secretary Bredina Drollet to the executive board shall be done in accordance with provisions of the CISNOC constitution.

If not already provided for, such provisions will be implemented by a special extraordinary meeting of CISNOC, called by executive board members to amend the constitution accordingly.

The loan must be disclosed and reported to parliament in accordance with the Ministry of Finance and Economic Management act.

Blake says executive board members approved 11 resolutions at a meeting on Friday.

One of these is that CISNOC accepts a loan offer by government to meet the costs of travel to the Pacific Games in Noumea, the loan being the balance of Air New Zealand and Air Calin airfares ($242,327).

The loan will be facilitated by letters of guarantee from government to the airlines.