Majola may face NPA probe

2012-03-09 14:17
Gerald Majola (File)
Pretoria - Cricket South Africa chief executive officer Gerald Majola’s non-disclosure of bonuses should be referred to the National Prosecuting Authority (NPA), retired judge Chris Nicholson said on Friday.

“Such investigations should also include whether any provisions of the Prevention and Combatting of Corrupt Activities Act, 2004([Act No. 12 of 2004) ... have been contravened,” Nicholson told reporters as he released findings for Cricket South Africa (CSA) in Pretoria.

“Section 10 provides that any person who is a party to an employment relationship and who, directly or indirectly, accepts from any other person any unauthorised gratification … is guilty of the offence of receiving unauthorised gratification.”

This would apply to both Majola and McIntosh, said Nicholson.

Earlier, he said a prima facie case existed against Majola.

“The committee is of the view that there is a prima facie case that Majola contravened sections 234, 235 and 236 of the Companies Act," said Nicholson.

“We believe there is a prima facie case of non-disclosure concerning the bonuses and irregularities with regard to travel and other costs.”

Majola's contract provides for suspension with pay for up to 180 days, pending the conclusion of a disciplinary enquiry.
The committee recommended that the board should consider this, said Nicholson.

“It would be in Majola's own interests to give him time to prepare his defence, unfettered by his normal duties."

Majola was the dominant force in the allocation of bonuses and not former chief financial officer Don McIntosh, Nicholson said.
The committee was also mandated to investigate expenses incurred by Majola and their legality.

Majola’s employment contract stated that he would be reimbursed for travel expenses paid out of his own pocket - provided they were approved by the board.

The matter related to Majola claiming travel expenses for his children and wife.

He blamed it on a mistake made either by a travel agent or his professional assistant.

But he admitted that CSA should not have reimbursed him.

“The committee was sceptical that it was an error of his professional assistant or a travel agent,” said Nicholson.

“They would have been acting on Majola’s instructions and it is improbable that they would charge CSA for his children’s flights without his instructions, either in general or on specific occasions [when] the said flights were undertaken.”

Sports Minister Fikile Mbalula appointed the inquiry in November 2011 to investigate CSA's failure to implement certain recommendations by auditing firm KPMG.

A KPMG report found that bonus payments of R4.5 million to CSA chief executive Gerald Majola, former CSA chief operating officer Don McIntosh, and other CSA employees, had been kept secret from the federation's remuneration committee.

It also found that Majola had breached the Companies Act at least four times.

The committee received written and oral submissions from current and former CSA staff and the public over three months.
It adjourned at the end of January to compile its report.

Read more on:    csa  |  gerald majola  |  chris nicholson

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