NCF with NOK 35 million in deficit

bike race NCF Bergen deficitBike race. Photo: Pixabay.com

Bike Federation (NCF) with NOK 35 million in deficit

The deficit in the Norwegian Cycle Federation (NCF) last year is far worse than expected. The consolidated financial statements for 2017 show a deficit of NOK 35.4 million.

 

This emerged at the annual meeting of the Norwegian Cycling Federation (NCF) in Tønsberg on Saturday. According to Bergens Tidende, it is twice as bad as the preliminary financial statements indicated (17.5 million).

The Cycling World Championships in Bergen is the main reason behind the blood-red figures.

– This is the worst case scenario for both the Cycling World Championships and the Norwegian Cycle Federation. Things can be resolved, says President of the Norwegian Cycling Federation, Harald Tiedemann Hansen to Bergens Tidende.

Asked about what can be resolved, Hansen points to police and road.

The police have made a claim of NOK 13.4 million for services rendered during the World Championships in September, 2017. The arranging company of Bergen 2017 AS (ltd), which is wholly owned by the Norwegian Cycling Federation, refuses to pay ten million of said amount.

According to Bergens Tidende (BT), there was a massive sigh emitted from the delegates when the figures from the consolidated result were presented at the National Assembly of the federation.

– This is dramatic. A doubled deficit makes the situation twice as challenging, says Terje Johnsen, leader of the Southern region of the NCF

Considers lawsuit

On Saturday it was also made public that one of the creditors of the cycling world championship, the Bergen based company, Flex Advertising, is considering holding Harald Tiedemann Hansen and the other board members of Bergen 2017 AS personally responsible for the financial scandal associated with the championship.

– We have experienced pure incompetence. You can not purchase services when you do not have the funds and you are aware of that. In this case they have gambled with money belonging to others, says Espen Hansen in Flex Advertising to VG.

According to Norwegian law, it is illegal to operate at the expense of creditors.

– We hope for a amicable solution, but have nonetheless engaged a lawyer to assess whether it is possible to hold the General Manager (Tiedemann Hansen) and the rest of the board of Bergen 2017 AS personally responsible for what has happened, says Hansen.

The estate of the bankrupted event company Possibility is also considering making personal claims against Tiedeman Hansen.

– It is clearly something we must consider. You should take the risk of paying using somebody else’s money without informing them about doing so, says manager of the estate, Egil Horstad, to VG.

Not worried

Possibility declared itself bankrupt in February. The company, which originally demanded NOK 13 million from the World Championships organizer, has accused Tiedemann Hansen of having mixing the roles as CEO of Bergen 2017 AS and being President of the Norwegian Bicycle Federation.

Harald Tidemann Hansen has not answered inquiries from VG on the matter. The President of the Norwegian Cycling Federation resigns after this weekend’s National Assembly in Tønsberg.

The chairman of Bergen 2017 AS, Mona Hellesnes, says this about the threath of lawsuits:

– The board takes note of fact that some creditors threatens to make people personally responsible It is regrettable that individual creditors are subject to losses, but this does in itself not mean that there are grounds for personal liability. The board is not worried about the outcome of such lawsuits, writes Hellesnes in an email to VG.

 

© NTB Scanpix / #Norway Today

 

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