News24

Shady CSA deals confirmed

2011-11-24 16:19

Pretoria - Former Cricket SA (CSA) remuneration committee chairman Paul Harris confirmed on Thursday that Cricket SA (CSA) employees had been paid undeclared bonuses.

This happened after South Africa hosted the 2009 Indian Premier League (IPL) tournament, he told a committee of inquiry into the financial affairs of CSA in Pretoria.

Harris was ousted by the CSA board when the allegations of underhanded bonus payments first surfaced last year.

He said CSA CEO Gerald Majola and former CSA chief operations officer Don McIntosh were paid double bonuses for their involvement in the Twenty20 competition.

"Up to 2006, the bonus policy was that staff and executives got the 13th cheque, and the feeling was that the executives should get bigger bonuses," Harris said.

The remuneration committee then decided that the bonuses would be three times the salary and only for outstanding work.

"When the IPL came at short notice, it was decided that the board would pay Majola and McIntosh seven times their salary, including reward for IPL performance," Harris said.

"But there was an unaccounted R1.75 million for Majola, and R1.47m for McIntosh, received for both tournaments."

Harris was the fifth person to give an oral representation to the committee, chaired by Judge Chris Nicholson.

Four representatives of KPMG appeared before the committee on Wednesday, the opening day of the oral representations.

Harris said there should have been transparency in the 2009 IPL contract, signed between the IPL and CSA, of which only Majola knew the full details.

"The issue here is disclosure," Harris said.

"In my view, both parties' chief executives [Lalit Modi and Majola] should have waived the confidentiality clause of the contract for the tournament.

"If you are contracted on behalf of your employer to negotiate with a third party, it has to be with the knowledge of your employer that you have a personal interest in it."

Harris said he believed the failure to declare bonuses had started with the inaugural Twenty20 World Cup held in South Africa in 2007, headed by former CSA employee Steve Elworthy.

"I suppose it all started at the 2007 tournament where there were unauthorised payments, and we did take it into consideration," he said.

"Elworthy got a bonus. The money was meant to come to CSA and then be dispersed. I believe that it created a precedent of non-disclosure of payments."

Northerns cricket union president Vincent Sinovich spoke after Harris.

Northerns was one of few bodies to openly support former CSA president Mtutuzeli Nyoka when he was given a vote of no confidence for the second time in October.

The inquiry was announced by Sports Minister Fikile Mbalula on November 4 after a KPMG report recommended that CSA's remuneration and travel allowance policy be reviewed.

The KPMG report found the bonuses were kept secret from CSA's remuneration committee, with Majola breaching the Companies Act on at least four occasions.

Nyoka will give his presentation to the committee on Friday morning.

SAPA

Comments
  • braamc - 2011-11-24 16:30

    Charge them criminally, this culture of theft and corruption everywhere is rubbish.

      Dirk - 2011-11-24 16:42

      Bank manager to teller: Why did you put all that money in your hand bag? What is the problem? Im paying myself a bonus

      Jono - 2011-11-24 16:48

      There is way to much money and time spent on cricket!

      Francois - 2011-11-24 17:49

      Cricket is transformed. No need to worry about it anymore, the development money was spent on developing a couple of people who never will make the team. Minister Mbalula, scrap quotas in cricket please.

  • Peter - 2011-11-24 16:31

    Eish! Is there just one department that's honest.?

      Facts - 2011-11-24 16:54

      I am afraid not.

  • Shirley - 2011-11-24 16:46

    Cricket in South Africa has been batteling for sponsorship and these clowns are stuffing their pockets! No wonder the proteas never perform! With all this scandalous behaviour what exactly is there to encourage pride,honour and an overwhelming urge to be victorious in matches. These goons sit behind a desk in an airconditioned office all day and earn millions! They cannot even get their selections right! Fire them,arrest them and replace them with people who have a genuine love of the game!!!!!!!!!!!!!!!!!!!

  • Roy - 2011-11-24 16:58

    Thr whole bloody lot should return their bonuses,their salarys and then should be fired and then taken to court. These people were only there to see how they could steal money from the sponsers and to hell with the sport. Majola should be sacked immediately and then charged for looking after his own pocket.

  • david.sportsman - 2011-11-24 18:02

    This is a disgrace...Our country is riddled with it at the moment and we, the HARD WORKING PUBLIC have to watch the one corrupt story after the other unfold, but we are not allowed to do or say nothing about it...!! This has to stop...somewhere, somebody has to start a movement against this continuous corruption in our sport, politics, etc....It is OUR tax money that they waste and it is OUR money that they take at the gate when we go to Newlands, Wanderers, Kingsmead, etc, etc...It is RUBBISH this...How long are we going to watch this and sit back and do nothing about it???

  • adrien.mcguire - 2011-11-24 20:48

    If they are found guilty, they must retun the money, and then face the courts on charges of embezzlement and theft. The bonuses were not authorised so it is nothing more than common theft, and MUST be treated as such. They should also be fired for bringing the sport into disrepute. I am tired of the sports administrators in this country. They seem to get into power, then somehow think that they own the sport in their personal capacity.They live in luxury, fly first class, stay in five star hotels, and take their family and friends on fully paid junkets. They are a disgrace. These sports need to be run like proper commercial enterprises and follow all the rules that apply. Furthermore they must never forget that the sport does not exist without fans, players and sponsors. They , as administrators are dispensible.

  • Bob - 2011-11-25 09:13

    Sounds like Nyoka is one of the good guys, from what I can see he has been fired because he exposed the corrupt doings, the guy should get a medal an increase and a top position if this is the case, but thats not the S African way eh, you expose corruption at your peril, FFS where is it going to end.

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