Sport

Athletics South Africa faces scrutiny in Parliament over CIPC deregistration

Jehran Naidoo|Published

Athletics SA president James Moloi.

Image: twitter.com/SocialRunnersSA

Athletics South Africa (ASA) remained mum on Wednesday, when their top-ranking members sat perplexed a day earlier in Parliament, after MPs grilled them on how they had failed to update the organisation’s Companies and Intellectual Property Commission (CIPC) status.

Liam Jacobs, a DA member on the portfolio committee on sports, arts and culture, requested the names of the individuals responsible for the blunder, according to a video of the interaction, from ASA representatives, which included acting CEO Terrence Magogodela, president James Moloi and Mpoase Shembeni, the administration's financial accountant.

In the video – with Jacobs interacting with Magogodela – the committee stated that ASA had been deregistered from the CIPC, thus putting the lives of South African athletes, and their participation locally and internationally, in jeopardy. The CIPC serves as the database for all South African companies.

According to Government Gazette Publication 2025-299, ASA were officially deregistered on February 5 this year. In the notice of deregistration, the CIPC stated that ASA’s membership was terminated due to the contravention of Section 82(3) of the Companies Act of 2008 – which indicates a failure to file annual returns for two or more years, and provide satisfactory reasons for that failure.

The ASA delegation could not provide any answers as to how they had not updated the compliance information and stated that the task had been outsourced to an auditing firm. ASA also could not explain why there had been no oversight of the auditing firm.

“Eish,” was the response given by Magogodela in Parliament on Tuesday.

Magogodela explained ASA had been busy dealing with tax matters at the time and could not entirely pin down how they had missed the deadline with the CIPC.

On Wednesday morning, ASA’s media liaison, Sifiso Cele, refused Independent Media comment on the matter.

“We have no comment on that,” Cele said. “Make of it what you will."

What exactly does deregistration mean for ASA?

According to Jacobs, the deregistration of ASA will affect both the association and the athletes that compete under their banner.

“Funding for athletics would be slashed by over 80%,” Jacobs said.

"Fewer events would be able to take place. Athlete development would stagnate. We would not be sending a high number of athletes to the Olympics

Regarding the name “Athletics South Africa”, deregistration means they can no longer enter into marketing or broadcasting contracts, and can no longer be funded by the Department of Sports, Arts and Culture.

The official notice served to Athletics South Africa, stating it has been deregistered from the Companies and Intellectual Properties Commission.

Image: Supplied

How does the CIPC system work?

Independent Media spoke to an anonymous source, who works closely with the CIPC on a daily basis. The source is a professional in the accounting field.

The source explained that the CIPC have recently updated their regulations and have become “more lenient over the years”.

“It used to be that you had to pay every year, but now they allow a company to fall behind on payments for up to two or three years,” the source said, adding that reinstatement is possible.

"The CIPC requires you to submit an annual return to stay updated on their system. If you fail to pay for over two years, they issue a 21-day notice stating that you are pending deregistration.

After that, they will issue you with a final notice saying that you have officially been taken off their system," he concluded.