Minister supports inquiry findings

Friday, March 16, 2012

Johannesburg - Sports Minister Fikile Mbalula has welcomed the findings and recommendations of the Nicholson Inquiry into the affairs of Cricket South Africa (CSA).

"We welcome the report and stand by its findings and recommendations and we expect full implementation of the recommendations," he said at a media briefing in Johannesburg on Friday following the release of the report by his ministerial committee on the financial affairs of CSA.

Last Friday, the committee, chaired by retired Judge Christopher Nicholson, released its report which found that there was a prima facie case that CSA boss Gerald Majola contravened the Companies Act by failing to disclose payment of his bonuses.

The committee, in its report, recommended that the alleged transgression should be referred to a disciplinary enquiry so that there is compliance with labour legislation and that pending the referral to a disciplinary enquiry, CSA should recommend the immediate suspension with pay of Majola.

It also recommended that CSA should appoint an acting CEO pending the outcome of the disciplinary enquiry.

The minister on Friday said that the findings and recommendations of the committee corroborate findings and recommendations that were made by KPMG and by two senior counsels.

"That being the case, the Board of Cricket South, if it has any moral compass and understands its fiduciary duties, must in its meeting tomorrow do the right thing as Judge Nicholson advised," said Mbalula.

The CSA board is expected to meet tomorrow.

The minister said he wanted a blow-by-blow update on the implementation of each recommendation and if the board was unable to implement certain recommendations, he would need to know the reason behind that.

He said the board must conduct an open and brutally frank introspection about its role in the deepening crisis within cricket and ask themselves the question whether after so many blunders they would be able to command the respect of all the people within the sector and South Africans at large.

"Is it not time for the board to make way for a new leadership that will take CSA to new era of hope and clean governance?" questioned Mbalula.

He said that the report's findings must be investigated by the National Director of Prosecutions and the South African Receiver of Revenue. "The committee make[s] specific recommendations about how CSA must recover the bonus pay outs and irregular travel expenses for families."

The CSA bonus saga stems from two cricket tournaments staged by CSA in South Africa in 2009. The event was moved as a result of instability in India and some of the Indian Islands at the time.

These were the IPL, held from 18 April 2009 to 24 May 2009 and the Champions Trophy, held from 24 September 2009 to 5 October 2009.

Nicholson said former CSA President Dr Mthuthuzeli Nyoka became aware of the true facts of the bonuses when an independent internal auditor reported that a pool bonus of R2 732 172.00 had been received for the IPL tournament; and an amount of R1 131 062 had been paid to Majola and R797 999 to Don McIntosh, the Chief Operating Officer, as bonuses.

Mbalula has since handed over copies of the report to both CSA and South Africa's Olympic governing body (SASCOC) and the CSA board has been given until 9 April to apply its mind on the findings and recommendations of the inquiry.

The minister assured the country that inroads were being made in resolving the turmoil in cricket.

"The Ministry of Sport and Recreation would like to inform all South Africans and sport-loving people of our country that we have now come to a watershed moment in the normalisation of the upheaval in cricket."