KPMG's conduct 'shocking'

2011-11-30 14:11
Gerald Majola (Gallo)
Johannesburg - Submissions auditing firm KPMG made at a hearing on Cricket SA were inconsistent with an executive summary it compiled earlier, a CSA official said on Wednesday.

This was the testimony of CSA cricket committee chairman Andy O'Connor before the sport ministry's committee of inquiry into CSA's financial affairs.

O'Connor told the inquiry in Pretoria he was shocked by KPMG's conduct.

He was asked to read a paragraph from the KPMG report in which the auditing firm said CSA chief executive Gerald Majola had not wilfully deceived anybody.

"My understanding is that he [Majola] did not wilfully go out of his way to deceive anybody or hide anything from anybody," O'Connor read from the final KPMG report.

However, KPMG's risk and compliance specialist Herman de Beer, told the committee last week there were "technical contraventions of the Companies Act".

O'Connor said these revelations had shocked him as CSA had paid KPMG a lot of money to conduct the forensic audit which finally bore contradictions.

Recommendations made by a commission, headed by CSA acting president AK Khan, which ultimately let Majola off without punishment, were debated at length.

All board members with the exception of one agreed to adopt the recommendations.

"It was a majority decision and [former CSA president] Mtutuzeli Nyoka was present, and Mr [Bernard] Matheson [Nyoka's council] was present," O'Connor said.

He said the board was satisfied with the recommendations made by the Khan commission as they also felt that Majola had done an exceptional job in organising the Indian Premier League tournament and deserved bonus payments for his work.

"We felt the profit and the amount of work being done and possible benefits economically to the country warranted those kinds of bonuses," he said.

"I felt it was not out of the ordinary due to the fact the tournament was put in place in four weeks which was an amazing feat, and felt it was a job well done by Majola and [former CSA COO Don] McIntosh.

John Blair, chairman of CSA's audit committee, said there was not enough evidence to give Majola a stronger sanction.

"Perhaps there were irregularities and certain people could make out that there were problems, but in the interest of cricket we needed to go forward and make decisions," Blair said.

"We came out with the finding that there was not sufficient fiduciary evidence."

Representatives of CSA were giving the only oral presentations to the committee, chaired by Judge Chris Nicholson, on the fifth day of the hearings.

Read more on:    csa  |  gerald majola

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