BRIDGETOWN, Barbados (CMC):
THE WEST Indies Cricket Board (WICB) is bankrupt and its only short-term saviour appears to be the hosting of the 2007 ICC Cricket World Cup.
According to information made available to the CMC Sports, the WICB auditors, an internationally recognised firm of chartered accountants, in their independent auditors' report to the shareholders of the WICB Inc, drew particular attention to Note 2 of the Consolidated Financial Statements.
Those statements indicated that the WICB and its World Cup subsidiary had incurred a net loss of US$19 million, 513 410 during the year ended September 30, 2005.
"And as of that date, it had an accumulated deficit of US$34 million, 920 819, and that the group's current liability exceeded its current assets," the report stated.
It added that the group had placed significant reliance on the financial success of the hosting of the 2007 Cricket World Cup event, in contributing to its longer term financial viability.
"The extent of the financial success of this event is not guaranteed. The group's continued existence is dependent upon the net cash inflow which is expected from hosting the ICC Cricket World Cup 2007, its ability to find new sources of finance and to identify and implement additional or alter-native revenue, generating and cost reduction programmes, which will contribute to the group achieving and maintaining profitable operations," the report said.
