Cape Town - Cricket South Africa on Tuesday refuted as totally unfounded and devoid of truth allegations made in the national Media that an amount of R68-million had gone missing from its bank accounts.
The claim was made in a founding affidavit by CSA president Dr Mtutuzeli Nyoka to the South Gauteng High Court.
The funds involved relate to CSA’s hosting of the Indian Premier League (IPL) on behalf of the Board of Control for Cricket in India (BCCI).
CSA was expected to provide funding to stadiums of certain costs on behalf of the IPL in a conduit capacity. At the date of signing the heads of agreement for the IPL, the anticipated stadium running costs to be funded via CSA was US$2.5 million.
Per the agreement, these costs were to be reimbursed by the BCCI, thus no expense relating to the above was recorded in the books of CSA to the extent that the amounts were reimbursable and also stadium related.
However, any other expenses not in accordance with the host agreement required that CSA wished to recover would need agreement by both CSA and BCCI. The anticipated stadium cost well exceeded the agreed $2.5 million and thus there was further negotiations between CSA and the BCCI (circa R27m).
Based on the paragraph above, BCCI remitted cash to CSA to fund all other event related costs which included stadium bumper costs, advertising and marketing etc.
All cash relating to these costs were not included in the income statement of CSA as they were not part of CSA activities and that CSA merely acted as a conduit for BCCI (CSA acted as a cash funding mechanism for the BCCI).
These transfer ins and outs were recorded in an intercompany account (not a suspense account).
The majority of CSA Board members concur with these findings. The IPL accounts have been audited by DeLoitte and Touche.
The claim was made in a founding affidavit by CSA president Dr Mtutuzeli Nyoka to the South Gauteng High Court.
The funds involved relate to CSA’s hosting of the Indian Premier League (IPL) on behalf of the Board of Control for Cricket in India (BCCI).
CSA was expected to provide funding to stadiums of certain costs on behalf of the IPL in a conduit capacity. At the date of signing the heads of agreement for the IPL, the anticipated stadium running costs to be funded via CSA was US$2.5 million.
Per the agreement, these costs were to be reimbursed by the BCCI, thus no expense relating to the above was recorded in the books of CSA to the extent that the amounts were reimbursable and also stadium related.
However, any other expenses not in accordance with the host agreement required that CSA wished to recover would need agreement by both CSA and BCCI. The anticipated stadium cost well exceeded the agreed $2.5 million and thus there was further negotiations between CSA and the BCCI (circa R27m).
Based on the paragraph above, BCCI remitted cash to CSA to fund all other event related costs which included stadium bumper costs, advertising and marketing etc.
All cash relating to these costs were not included in the income statement of CSA as they were not part of CSA activities and that CSA merely acted as a conduit for BCCI (CSA acted as a cash funding mechanism for the BCCI).
These transfer ins and outs were recorded in an intercompany account (not a suspense account).
The majority of CSA Board members concur with these findings. The IPL accounts have been audited by DeLoitte and Touche.