USOC to Scrutinize Organizational Funds

One legacy of the lengthy controversy involving USA Boxing’s finances will be increased institutional control.

What started as a routine audit on July 17 developed into a fiscal disaster as it was alleged that $3.18 million in U.S. Olympic Committee grants to USA Boxing had been misappropriated, according to records from 1989 to 1995. Negotiations on repayment are in the final stages and the timetable for repayment to begin is “up to boxing,” said USOC executive director Richard Schultz on Friday.

“With small office staff, we were able to go through all of the 45 [national governing bodies] one time in this quad,” Schultz said of the period from 1992-1996. “Our intentions are to add to that staff and have two internal audits in a quad[rennium], in addition to a compliance audit. So, we do have plans.”

The USOC gathered here for its semiannual board meeting today and Sunday, but some matters were discussed in executive committee sessions Thursday and Friday, among them the boxing controversy.

Shortly before meeting reporters, Schultz and USOC president William Hybl met with USA Boxing president Gary Toney and acting executive director David Lubs. Toney, elected president in September, could not be specific about negotiations.

“We’re still trying to work out details,” he said. “ . . . I went into this [job] with my eyes open. I knew what was taking place, but I didn’t know the extent of the problems. We have a new administration and we plan on making changes.”

Said Schultz: “We are working with boxing to try to resolve the issue, so that it can be something that is credible for the USOC and for boxing.”

USA Boxing had been trying to whittle down the repayment figure. At a hearing in late January the figure was reduced to about $1.3 million, according to the Colorado Springs Gazette Telegraph.

Those involved in the controversy are no longer involved with the boxing federation. Among the irregularities found included the practice of billing the USOC for expenses already paid for by sponsors. Certain checks were allegedly signed and never left the office, and there were charges that the checks were forged. Additionally, the district attorney’s office in El Paso (Colo.) County started a criminal investigation in October.