World Athletics said in a recent statement that its staff had, "over several years," stolen about $1.75 million (about ¥12.44 million), and has filed a criminal complaint while launching "a series of strengthened internal financial controls."
World Athletics said it discovered the "systemic theft" earlier this year. The statement said the investigation is focused on two former employees and a contracted consultant.The theft was carried out: by forging or altering invoices.
A person familiar with the matter, speaking on condition of anonymity, said: "Everyone at headquarters was shocked. I think the word 'shocked' is the most apt."
Of the two former employees, one had already left before the theft was discovered. The other former employee and the consultant "had their contracts terminated," World Athletics said in a statement, which was issued in response to inquiries about the matter.
Four people familiar with World Athletics' review, speaking on condition of anonymity, said the investigation focused on former chief operating officer Vinish Kohler and former head of broadcasting James Lord. The third person is an assistant who did not hold management responsibilities.
World Athletics president Sebastian Coe said in a statement: "Unfortunately, corporate theft happens from time to time across organizations, industries and at all levels around the world. The most important thing is to identify the theft, review why it happened, and then introduce new procedures and strengthen controls to ensure such incidents do not happen again. That is exactly what we are doing."
“We are also determined to recover any funds we can recover and will use all legal means to do so,” he said. The statement also said, “Detailed case materials have been prepared and handed over to the relevant judicial and legal authorities for criminal investigation,” and it is understood that these authorities are located in Monaco and the UK.
“Too many organisations look the other way on these kinds of incidents, terminating employment with limited information, which allows wrongdoers to continue deceiving and stealing at new organisations. We are not that kind of organisation.” Sebastian Coe said: “We have built a reputation for good governance, transparency and defending justice, even if it sometimes makes people uncomfortable. This matter is uncomfortable too, but what matters is that we do the right thing.”
World Athletics' 2024 financial report, released in early September, shows its revenue increased by 10.5% year-on-year to $59.8 million. A rough calculation: $1.75 million accounts for less than 3% of that total. Moreover, World Athletics' statement noted that this “systematic theft” persisted for “many years,” so the above calculation is even more approximate.
The $59.8 million does not include the once-every-four-years Olympic dividend of $39.6 million. Adding the two together, that year's total revenue was $99.4 million, with cash reserves just under $40 million.
The missing funds are mainly divided into two parts. The first amounted to approximately €1.1 million, which at current exchange rates is about $1.28 million. The other was about €400,000, equivalent to $466,000.
The discrepancy was discovered during the newly formed business team's initial audit, which prompted the start of a review process.
