Basketball New Zealand (BBNZ) has terminated the membership of the Waitakere Basketball Association (WBA), installing an interim management structure to administer the sport in West Auckland.
The national body took the measure after prolonged efforts to resolve issues relating to a $210,000 grant from The Trusts Charitable Foundationto Waitakere last year.
"The foundation informed us some time ago that there were serious irregularities," BBNZ chief executive Bryn McGoldrick said.
"We have been working with them and WBA to recover the $210,000 in question but have been unable to achieve an acceptable outcome.
"Our action, while regrettable, sends a clear message that, as a national sporting organisation, we must be open and transparent in all we do.
"Trust grants are a very important source of funding for basketball, as they are for many codes, and we cannot tolerate any actions that threaten this vital lifeline for our sport."
McGoldrick was determined that the local community, a rich source of basketball talent, will not suffer and has assigned BBNZ field development manager Glenda Rodger to oversee a rebuilding process.
"We have put considerable effort into improving our grass roots administration around the country in recent years, so this ... is very disappointing," McGoldrick said.
"We now see it as a challenge to restore Waitakere basketball to the top tier where it belongs and to make sure the kids in the area have a place to play the game."
Internal Affairs confirmed it was investigating alleged misuse of funds at the Waitakere Basketball Association, but would not comment on the investigation.
