BTC, BFA contract: Letshwiti caught in between
Mqondisi Dube | Friday May 3, 2019 12:22
Letshwiti is the BFA president, and at the same time, a BTC board member.
The BTC recently expressed misgivings about the BFA contract, which sees the telecommunications company sponsor the BTC Premiership for P39 million over three seasons.
BTC has made it clear that it was not getting return on investment, and there have been meetings to discuss the matter.
BTC committed to sponsoring the Premiership on a new three-year deal in 2017, just months after the company’s privatisation.
However, the BTC board is reportedly unhappy at the amount of returns from the company’s investment. Despite earlier signs that the beMOBILE brand had gained significant mileage in the early stages of the sponsorship, it appears there has been a gridlock in recent times.
The BTC board has written to the BFA seeking answers, as the three-year deal approaches its final 12 months.
Reports have been that the deal might be terminated before time, which means BFA will lose the P13 million in the third and final season.
But sources at BTC said the deal cannot be terminated ‘just like that’ and might be allowed to run the full three-year course.
BTC communications manager, Golekanye Molapisi said he was unaware of any termination reports after the BTC board reportedly met and took a decision on Tuesday morning.
The BFA has also said it has not received anything from BTC regarding the termination of the contract.
However, Letshwiti finds himself in a quandary. As a BTC board member he has to ensure that there is return on investment on any of the company’s investment and if the BFA deal is not paying dividends, he would be expected to be amongst those who recommend its termination.
But there is another fix; Letshwiti is the BFA president, and rode on a campaign that promised a complete turnaround strategy at a bankrupt association, which was said to be P10 million in the red when he took over in 2016.
Letshwiti promised to bring back lost partners, and the renewal of the BTC deal in 2017 was a sign of confidence in football’s leadership.
With the BFA election looming, Letshwiti cannot afford to see a key financial partner leave.
His two roles have assumed significant importance, and will test whichever hat he is wearing.
“He is a BTC board member and has to represent BTC. Good corporate governance dictates that if you are conflicted, you declare your interest or recuse yourself. It is an ethical issue,” BFA chief executive officer, Mfolo Mfolo said, when asked if the contract issue does not compromise Letshwiti.