Will sponsors such as Emirates Airline pull out after these damning findings about Asia Rugby surfaced?
Asia Rugby’s governance and leadership have come under fire following a damning independent financial audit conducted by World Rugby. The audit, carried out by Ernst & Young, highlighted significant concerns about Asia Rugby’s financial processes, transparency, and overall governance under its current president, Qais Al-Dhalai, who has been in office since 2019.
Key Findings:
Asia Rugby, despite relocating its headquarters to Dubai under Al-Dhalai’s direction, remains unregistered as a legal entity in the UAE and is still incorporated in Hong Kong. The audit also revealed that Asia Rugby has been using the bank account of the UAE Rugby Federation (UAERF) for financial transactions due to its lack of a UAE-based account, raising concerns about potential financial misconduct.
Additionally, the audit uncovered “ineffective record-keeping practices” within Asia Rugby and a lack of proper financial controls. Payments were often made in ways that circumvented standard procedures, increasing the risk of fraudulent or inappropriate transactions. This has contributed to a lack of commercial partnerships under Al-Dhalai’s leadership, with the only recent deal being a sponsorship from Emirates Airlines, with no public disclosure of its value.
The report also addressed issues with the selection process for hosting rugby tournaments in Asia. It found no clear policy or documented process for selecting venues, raising questions about the fairness and transparency of these decisions. The audit cited delays in reimbursing match officials and other stakeholders, further underscoring Asia Rugby’s financial management failures.
Leadership and Governance Concerns:
Al-Dhalai, who also holds the position of Vice President at the UAE Rugby Federation, has faced accusations of poor leadership and governance. The Treasurer position within Asia Rugby was left vacant after an investigation into the previous holder, and Al-Dhalai has since taken control of the financial subcommittee. The audit also revealed that appointments within Asia Rugby, including the role of Accountant and Admin Officer, were made without a transparent or competitive process, undermining the organization’s stated goals of accountability and fairness.
Despite the serious findings, no immediate action has been taken, though World Rugby is reportedly considering further steps to address the issues. The audit has raised alarm bells ahead of the upcoming Asia Rugby presidential elections in November 2024, with many questioning whether Al-Dhalai should continue to lead the organization.
Broader Implications:
The governance failures highlighted in the audit could potentially harm Asia Rugby’s relationships with commercial partners and damage its reputation. The organization’s inability to secure new sponsorships and its poor financial management have left Asia Rugby’s strategic goals unmet, particularly its target of generating $500,000 annually through commercial partnerships.
World Rugby has also been called into question, with concerns about its oversight of regional bodies. The lack of a whistleblower mechanism to report governance issues has been criticized, with many stakeholders expressing doubts about whether World Rugby will take decisive action in response to the audit.
As Asia Rugby approaches its elections, the future direction of the organization remains uncertain. The audit has brought to light deep-rooted issues that need to be addressed if the sport is to thrive in the region.
With serious questions surrounding its leadership, financial integrity, and governance, Asia Rugby faces a critical moment. The findings from the independent audit highlight the urgent need for reform and accountability if the organization is to regain the trust of its stakeholders and achieve its long-term objectives. The coming months will be crucial in determining the future of rugby governance in Asia.
Courtesy: Rugby Asia 24/7
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Asia Rugby’s Leadership & Governance Called Into Question With Damning World Rugby Independent Financial Audit
