South African sports body had deficits of R11 million in three years
Boxing South Africa (BSA) has recorded budget deficits for the past three financial years for which it has released an annual report, totalling R11.38 million in losses since 2021/22.
BSA has been the custodian and curator of South African Boxing since 2001 and is the country’s leading boxing authority. It is a public entity overseen by the Department of Sport, Arts and Culture (DSAC).
On its website, BSA explains that it upholds the strong South African boxing heritage by giving everyone who partakes in the sport equal opportunities. BSA’s mission is to effectively and efficiently administer and regulate professional boxing.
Some of its duties include ensuring and safeguarding professional boxers’ health, safety and general well-being, and promoting, marketing and sanctioning quality boxing events and tournaments to increase the sport’s popularity with athletes, supporters and sponsors.
BSA is also responsible for credibly rating boxers and training licensees, and positioning BSA as a point of reference for international sanctioning bodies in South Africa.
As a public entity, BSA is legally obligated to manage its budget transparently and accountably, ensuring efficient and effective financial management.
This includes submitting regular reports on expenditure and performance to legislatures, which then oversee the budget implementation and monitoring processes.
In its latest annual report for the 2023/24 financial year, former BSA chairperson Sifiso Shongwe explained that this year presented a particular testing period for the entity.
“We were faced with a series of litigations that caused instability within the organisation,” he said, referring to the legal challenges the body faced when its board’s term expired in December 2023.
He said the board’s focus going forward will be to ensure financial sustainability, enhance its governance framework, and expand the reach of boxing across all demographics.
However, earlier this year, the Portfolio Committee on Sports, Arts, and Culture questioned BSA’s progress in addressing its financial mismanagement.
DA MP Liam Chad Jacobs also previously slammed the organisation and other national sports bodies for exorbitant spending, with BSA reportedly having spent R5.5 million on travel in one financial year.
Finances take a hit

While BSA has yet to release its annual report for the 2024/25 financial year, its reports for the five years prior are available.
These reports revealed that BSA has significantly declined over that period, swinging from a budget surplus to a deficit.
As a public entity and not a private company, BSA is not expected to turn a profit or surplus, as its goal is not to make money or provide returns to shareholders.
However, the entity is required to use the money allocated to it responsibly, as it is funded by taxpayer money, making it essential to ensure that these funds are used effectively for their intended purposes.
In the 2019/20 and 2020/21 financial years, BSA reported budget surpluses of R2.14 million and R4.23 million, respectively.
In those years, the entity recorded strong revenue growth and well-managed expenditure.
BSA’s revenue in 2019/20 and 2020/21 was R19.09 million and R51.62 million, respectively, while expenditure was R16.95 million and R17.39 million.
However, from 2021/22, BSA’s financial health started to deteriorate, with the entity reporting a R1.21 million deficit for that year.
Its revenue also fell significantly that year, to R21.54 million, while expenditure surged to R22.75 million, outpacing income.
This situation improved slightly in the 2022/23 financial year, with strong growth in revenue and a less significant jump in expenditure compared to the previous year.
BSA recorded a R77,000 deficit for that year, with revenue of R28.26 million and total expenditure of R28.34 million.
However, things took a turn again in the 2023/24 financial year, as the entity’s expenditure skyrocketed.
BSA reported revenue of R32.92 million, up 16.47% from the year prior, and expenditure of R43.01 million, up 51.77%.
BSA’s significant jump in expenditures was due to its surging employee costs, which more than doubled from R10.39 million in 2022/23 to R20.92 million in 2023/24.
In addition, the entity reported that its irregular expenditure had grown from R1.51 million to R2.41 million.
This mismatch between income and spending saw the entity report a deficit of R10.09 million for the 2023/24 financial year.
In that year, BSA also received a qualified audit opinion, which could indicate that its financial statements contain material misstatements in specific amounts.
This type of audit outcome could also mean there is insufficient evidence for the Auditor General to conclude that specific amounts included in the financial statements are not materially misstated.
BSA also became technically insolvent in the 2023/24 financial year, as its liabilities outweighed its assets. This meant the entity had negative net assets of R6.38 million.
Boxing South Africa’s struggling finances
Below is an overview of BSA’s results between the 2019/20 and 2023/24 financial years.


Comments