The State of Karate in the UK today. 3 Months, 2 Weeks ago
Hey,
Whats happening on the Karate front these days in the UK? After the collapse of Karate England is it the case that Karate in the UK is made up of splinter organisations? Would be interesting to get some info.
KARATE ENGLAND, the governing body of the sport, created to great fanfare last November, is teetering on the edge of bankruptcy amid allegations of extravagance and mismanagement.
The Times can reveal evidence that raises serious questions about the role of Sport England, the quango that is understood to have allowed hundreds of thousands of pounds of public money to be spent by the governing body.
At an extraordinary meeting of Karate England in Burton upon Trent on Sunday, criticism was levelled at Nick Halafihi, the former head of Hull Kingston Rovers rugby league club, who was chief executive of Karate England until being dismissed for gross misconduct in September for alleged threatening behaviour at a board meeting. The board was also criticised.
The Times has learnt that thousands of pounds were used by Halafihi, with the board’s approval, to convert the garage of his home in Yorkshire into an office, and that he was paid his three-year car allowance of £15,000 up front.
Also of concern are allegations that insurance premiums paid by members to Karate England for the sole purpose of being forwarded to an insurance company were used on other items of expenditure by the governing body. This appears to be corroborated by a confidential creditors’ list, seen by The Times, which indicates debts of £13,188 to Perkins Slade, the designated insurance company. This could be the subject of legal action if it is discovered that Karate England failed in its obligations to pass on the money.
But it is the role of Sport England that will generate most concern among power-brokers in British sport and strengthen calls for its abolition. The Times can reveal that most of the controversial payments made by Karate England that have damaged its financial stability were authorised and countersigned by the quango through a bank account called the World Class Payments Bureau. According to a Sport England spokesman, this account is used to “monitor the spending of developing governing bodies and to safeguard their finances”. Its critics will argue that it has failed.
Concerns will also be expressed concerning the appointment of key Karate England staff. Halafihi was a paid consultant to Sport England when he landed the job of chief executive. Karate England later appointed Philip Don, a Sport England employee (at that time the case officer for karate) and former football referee, as development officer.
The Times can reveal that Don sat on the interview panel (although he did not vote) that appointed Halafihi when Don was an employee of Sport England. One insider said: “It gave the impression that the allocation of jobs at Karate England was a little too cosy.”
Speaking from a golf resort in Portugal on Monday, Don, who resigned from his job in June this year, said that he had received a pay rise for moving to Karate England, but he described it as minimal. He said that his resignation had been as a result of “mismanagement by the board” and that his appointment, and that of Halafihi, were “clear and transparent”.
Sport England suspended its funding of the governing body in August because of what it described as “financial mismanagement and governance”. An insider claimed that the quango had “failed in its duty of oversight and then proceeded to cut and run”.
At the EGM there were gasps of astonishment from delegates when it was claimed that Karate England has spent “almost £1 million” in 11 months. The creditors’ list reveals debts of £124,572, but the EGM was told that Karate England is also significantly indebted to top athletes after “verbal commitments to pay stipends” . Some creditors are threatening to force the governing body into liquidation.
A number of staff members have not been paid their salaries, in some cases for months, and the offices in Bisham Abbey, Buckinghamshire, have been virtually deserted. It is understood that aggrieved staff are withholding state-of-the-art IT equipment, including laptops and BlackBerries, as bargaining chips against unpaid salary.
Asterios Grekos, the commercial and marketing manager, and Les Cutting, the child protection officer, have initiated legal action against Karate England for unpaid salaries. Others are expected to follow suit.
Karate England is being kept afloat by companies associated with Terry Wingrove, a colourful businessman who is a seventh dan. It is understood that Cyberbudo, his martial arts company, paid £25,000 to sponsor the England team in Finland for the recent World Championships in return for the team wearing the company’s logos on tracksuits and shirts.
At the EGM, Wingrove offered to put £150,000 into Karate England on condition it is matched by Sport England as part of a rescue package. He gave a frank and robust assessment of the state of Karate England and poured scorn on what he claimed was the culture of excess, something that he said was exemplified by “the payment of thousands of pounds to Toye Kenning, the bag-makers to the Queen, for holdalls for Karate England staff”.
He also criticised payments to Harness Technology, an IT company based in York. Bank statements seen by The Times suggest that the company has been paid about £60,000 over the past 11 months to provide IT services and equipment, a sum criticised by delegates at the EGM. The Times has established that the work was not put out to tender and that no other quotes were sought.
It has been established that Halafihi’s relationship with Stuart Lloyd, the managing director of Harness Technology, predated his appointment to Karate England. Lloyd told The Times that his quote was “fair and reasonable” and included “capital equipment, including laptops and desktops”. Halafihi said yesterday that the reason he did not seek other quotes was because of time constraints.
Halafihi also claimed that many of the things for which he has been criticised, including using money from Karate England to pay for his garage conversion and receiving his car allowance up front, were approved by the board. He said that his initiatives to improve financial controls and commercial income were stifled by the board.
Wingrove has spent recent weeks at Bisham Abbey fending off creditors, providing his time free of charge. He was recently co-opted on to the board of Karate England and has been paying the running costs of the Bisham Abbey operation. A confidential e-mail seen by The Times has revealed that Sport England will conduct an internal meeting this week to decide whether to mount a rescue attempt.
DESPERATE DAN
TERRY WINGROVE, below, a seventh dan black belt, is seen as a possible saviour of Karate England. This view will have been strengthened by a bravura performance at the extraordinary meeting on Sunday, when Wingrove drew applause for his frank assessment of the state of Karate England and an impassioned plea to salvage the organisation.
Cyberbudo, his martial arts company, is said to have paid £25,000 to sponsor the England team in Finland for the recent World Championships in return for the team wearing its logos on tracksuits and shirts.
He has also offered £150,000 on condition that it is matched by Sport England as part of a rescue operation. Just co-opted on to the Karate England board, Wingrove has spent recent weeks fighting off creditors.
KEY PLAYERS
NICK HALAFIHI
Former chief executive of Hull Kingston Rovers
Commissioned by Sport England to write report proposing formation of Karate England and became first chief executive. According to draft contract dated November 7, 2005, was paid basic annual salary of £65,000, plus pension, private medical insurance and bonuses. Monies were paid to the account of Pow Wow Sportz, a limited company listing Halafihi and his wife as directors.
Halafihi’s contract also provided for a payment of £5,000 to convert a garage at his home in Yorkshire into an office (Halafihi claims he received “around £3,000”) and three years’ worth of car allowance totalling £15,000, paid up front. Dismissed for gross misconduct after allegedly threatening Terry Wingrove, a fellow board member, at a meeting in September. Halafihi denies making any threats.
ROGER DRAPER
Chief executive of Sport England when Karate England was incorporated in November 2005
Now chief executive of Lawn Tennis Association, he is understood to have been instrumental in calling for the amalgamation of the disparate bodies that ran karate before Karate England. In press release dated January 18, 2006, Draper said: “With the creation of Karate England, the sport has demonstrated its intention and commitment to modernising its administration and structures.” No press releases on karate have been issued by Sport England since January, stoking anxiety on karate websites. A senior figure in British sport said: “An obsession with image is sadly something that has become a part of Sport England culture.”
JOE ELLIS
Sixth dan karate fighter, was president of board of Karate England from its inception until resigning on August 13, 2006
Along with other members and former members of the board, Ellis came in for severe criticism at Sunday’s extraordinary general meeting for allegedly failing to provide adequate oversight to Karate England. The board was also criticised in a confidential report by auditors Deloitte dated March 2006. Was replaced as president by Victor Charles, MBE, who faced calls for his resignation at the EGM, but argued he wanted to help rescue the governing body. The Times was unable to contact Ellis for comment.
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Re:The State of Karate in the UK today. 3 Months, 2 Weeks ago
Mind boggling.
Politics and MA......a recipe for disgrace.
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