The following is from the official, unedited MFSA statement:
The MFSA Board first had to intervene to save the coveted Loeries Awards of the advertising industry when it became clear that it was under threat. In response, the Board in April 2005 appointed Dee Blackie, a professional marketer as chairperson of the management committee to take over the management of the organisation. She stabilised the MFSA, negotiated a secure future for the Loeries by returning the award to the creative community and instituted a review of the organisation's position. Her concern about the future viability of the MFSA prompted the Board to appoint Brendan O' Donnell, another experienced marketer and a former banker, in early September 2005 to conduct a due diligence on the organisation. The Board instructed O'Donnell to report back on the due diligence as soon as possible.
O' Donnell completed the due diligence within a month and he issued a report on the financial viability of the MFSA to the Board last week. Having received the report on the future of the MFSA, the Board decided that the only responsible and prudent option was to instruct the MFSA management to wind down the organisation.
"I have done a thorough review of the future financial viability of the MFSA, but it simply has too much baggage to be able to save it in its current form," states O' Donnell. He says that the MFSA would require a recapitalisation that would not be possible to fund and therefore the Board is doing the right thing by ensuring that the organisation is wound down before its resources are even further depleted. "The winding down of the MFSA will be done with sensitivity to its employees, creditors and all other stakeholders and every effort will be made to find ways to ensure the continuation of its important programmes."
MFSA Chairman Jabu Mabuza says that the MFSA will be wound down in a voluntary, orderly process. "The Board applied their minds to the options available and decided to take the tough but prudent course of action", says Mabuza. He said that the decision leaves the marketing community free to set up a new representative body. "The MFSA Board wishes to thank the staff who continue to do their best despite difficult conditions," says Mabuza.
ends
