On Thursday, the International Boxing Association (AIBA) has clarified that there is no choice other than to terminate India’s Contract after the desperate attempts made to pay the host fees as mentioned in the Host City Agreement.
Serbia will host the 2021 AIBA Men’s World Boxing Championship stated by the Boxing Federation of India (BFI), announced by AIBA On Tuesday.
The tournament was awarded to India in 2017, and the Agreement for assisting Host City, which was signed in January 2019. As per the agreement, Half of the Host fees were due and payable on 1 December 2019. But as New Delhi did not fulfill its obligations to pay the host fee as mentioned in the Host City Agreement, despite numerous reminders by AIBA and after having been offered multiple options to settle their obligations, AIBA had no choice but to terminate the contract in April 2020,” read AIBA statement.
“The decision by AIBA was also prompted by the fact that almost two-thirds of the Host Fee could due by BFI for hosted the 2018 AIBA Women’s World Boxing Championships remains outstanding to date, more than 18 months after the event. This host fees should have been paid by BFI in summer 2018. AIBA showed a lot of patience and comprehension, agreeing on numerous successive repayment plans, which were never respected by BFI,” it added.
BFI also claimed on Tuesday that they were not consulted and accused AIBA of not helping them during the bank operation linked to Serbia.
AIBA intended to have some previous payments through an account in Serbia. As Serbia is in the Gray List of FATF (Financial Action Task Force) countries, Indian Banks do not normally send money to Serbia.
“While the payment of the first installment of host fee was to be paid by December 01, 2019, AIBA invited fresh bids on December 01, 2019 itself. Therefore, we have reasons to believe that the decision to change the venue of WCH-2021 was taken in haste without due consultation with BFI,” the statement further read.
BFI President Ajay Singh said that he had a word with AIBA Interim President Dr. Mohamed Mustahsane and both bodies are working for a mutual solution. The apex body also said that it is confident that the cancellation penalty will be waived off.