An offer from Russia to wipe out millions of dollars worth of debt will be officially turned down this week by the International Boxing Association (AIBA), its Interim President Mohamed Moustahsane has told insidethegames.
In March, Umar Kremlev, secretary general of the Russian Boxing Federation, made the unprecedented proposal to give AIBA $16 million (£12 million/€14 million) to clear the organisation's significant debt if it remains in charge of the Olympic tournament at Tokyo 2020.
The astonishing offer is among the items due to be discussed at an AIBA Extraordinary Executive Committee meeting in Lausanne on Saturday (May 18).
It is due to take place just four days before the International Olympic Committee (IOC) Executive Board are due to announce whether AIBA will remain as organisers of the tournament at Tokyo 2020 after studying the report of an inquiry launched last November.
Kremlev, a member of the ruling AIBA Executive Committee who recently declared his intention to stand for President, made the proposal in a letter sent to IOC President Thomas Bach and Nenad Lalović, chairman of the inquiry into AIBA.
But there is widespread discomfort about the source of the funds that Kremlev, listed as a former owner of a security company and a jewellery firm, is offering.
He has claimed the money comes from "private funds" and is not from the Russian Government.
Moustahsane, though, revealed to insidethegames in an exclusive interview that AIBA will be rejecting Kremlev’s offer.
“Actually, the financial situation of AIBA is stable,” the Moroccan said.
“We have solved many debts, but in the short-term for four or five years not immediately.
“AIBA will be in better situation financially without the proposal of Mr Umar Kremlev.
“In my opinion he tried, from his point of view, to help AIBA to make sure we would be in a good financial situation.
“He made a proposal that means he has the funds, but I didn’t ask him more than that.
“We thanked him for the proposal and that’s that.
“We will not take the offer.
“We think AIBA should count on programmes and the work we usually do as a sport [to raise funds].
“It’s better like this.”
Moustahsane was elected to replace Gafur Rakhimov as Interim President in March following his decision to step aside after several months of negative publicity following his election at the AIBA Congress in Moscow in November.
Rakhimov has been described as "one of Uzbekistan's leading criminals" and remains on the United States Treasury Department sanctions list.
His election was the catalyst for the IOC launching the inquiry into AIBA, which has threatened its position as the Olympic governing body for the sport, although they claim the issues run deeper than just Rakhimov.
Moustahsane, a medical doctor, has signalled that he does not expect Rakhimov to return as President and that new elections to choose a permanent successor will be held as soon as the situation with the IOC is clarified.
"He has stepped aside clearly," Moustahsane told insidethegames.
"He will not come back if he is not resolving all the issues he has, especially the one with the American Treasury.
"This has to be clear to everyone.
"President Rakhimov did a very good job.
"He saved AIBA from many financial situations.
"We thank him for all what he did but now he has stepped aside AIBA has to go forward.
"Once AIBA resolves the situation with the IOC and get the final decisions then the next step will be the elections."