CAPE TOWN, SOUTH AFRICA - DECEMBER 14, Frik Vermaak (CEO of Athletics South Africa (ASA)) during the announcement of the new CEO by Athletics South Africa from Western Province Cricket Club, Keurboom on December 14, 2011 in Cape Town, South Africa Photo by Ashley Vlotman / Gallo Images

Athletics SA (ASA) could face liquidation if it failed to repay a R7 million debt to a sports promotion company, Beeld newspaper reported on Tuesday.

Chairman of the promotion company, Accelerate Sport, is Gideon Sam, who is the head of the SA Sports Confederation and Olympic Committee (Sascoc).

Rian Oberholzer, previous executive head of the SA Rugby Union, is also a director of the company, Beeld reported.

According to Oberholzer, there was a strong possibility ASA would be liquidated if the debt was not repayed.

Oberholzer said all avenues were being considered to recover the money,

“We came to an agreement on several occasions, but ASA never keeps its word. Our legal representatives are in discussions with the ASA's legal team.”

According to Oberholzer, ASA owed Accelerate Sport a commission for the Yellow Pages and Nedbank sponsorships, and for television broadcasting rights.

ASA chairman James Evans denied the organisation owed Accelerate Sport any money. According to him, contractual obligations were suspended in 2008. – Sapa