A bonus scandal inquiry that seeks to determine how monies were channeled to Cricket South Africa (CSA) officials following its hosting of the Indian Premier League in 2009 has revealed that CSA CEO Gerald Majola had, in fact, received a bonus eight times his monthly salary.
The bonuses were apparently promised to staff for bringing the IPL to South Africa, following threats of violence in India.
The inquiry that kicked off on Thursday and being presided over by Judge Chris Nicholson, was earlier told by CSA’s former head of the remuneration committee, Paul Harris, that the committee had recommended capping staff bonuses at about three times their monthly salaries.CSA was paid a hosting fee of US$3-million (about SA Rands 26-million) to host the tournament.
The legal representative for the accounting firm at the hearing said, though the Board of Control for Cricket in India had paid CSA R3.8-million for bonuses, only R2.7-million had actually been paid out in bonuses to CSA staff, but the CSA could not be accused of abusing the R1-million as the discrepancy was just an “anomaly” at this stage.
It also came to light that Majola’s personal allowance for travel amounted to R1-million (SA Rands) per year, an amount Harris said would never have been okayed by the remuneration committee.
In fact, the inquiry heard from Harris that unauthorised payments could date back to SA’s hosting of the T20 World Cup in 2007.
Sports Minister Fikile Mbalula formally announced the terms of reference for the inquiry, as the pressure mounted against CSA for a wider probe. It centres around bonuses paid to Majola, and other staff.
However, the man at the centre of the inquiry is in fact Majola, who remains at the helm despite a recent independent audit by an accounting firm that ruled that four Companies Act requirements were ignored in the awarding of the bonuses.
Another figure at the centre of the inquiry, is former CSA president, Mtutuzeli Nyoka. Nyoka, who served from 2008 to 2011, had in fact for a period of two years pressurised the Board into launching an inquiry that would look into the channeling of the bonuses to CSA staff and Majola.
His constant urging, of course, put Nyoka and Majola at odds with each other, to the point where the former “best friends” were not on speaking terms.
Majola and Nyoka go back a long way.
They played in the same club cricket team in their home town of New Brighton, Port Elizabeth, during the dark days of apartheid, where sport was divided on racial lines.
They were not only players in the same team, but the best of mates. So it stayed until two years ago, when Nyoka kept pressing for an inquiry, leading to an unpleasant relationship between the two men, who shared offices at CSA headquarters.
In February, CSA Board members appeared to gang-up on Nyoka by agreeing on a vote of no-confidence in Nyoka, who had to vacate his post. Nyoka, however took the matter to the South Gauteng High Court and challenged his axing.
He won the case and was reinstated to his post as president. CSA had during the court proceedings agreed to an independent audit by a well-known accounting firm.
On completion of the audit, the accountants recommended that CSA’s remuneration and travel allowance policy be reviewed. It found an apparent non-disclosure of bonus payments to CSA employees, contrary to Companies Act requirements, and suggested that CSA seek the legal advice of senior counsel.
Majola was also found to have “made an error of judgment” in failing to clear bonus payments with CSA’s remuneration committee, but no action was taken against him. That’s when an under-pressure Mbalula stepped in to formally announce the formal inquiry into the scandal.
Now back in the fray following his reinstatement, Nyoka continued calls for action after the audit findings.
In October, Nyoka found himself on the sidelines for a second time, after only one of the 11 provincial unions voted against another no-confidence vote instituted by CSA against Nyoka.
Nyoka was accused of disregarding majority decisions of the Board and bringing it into disrepute and got the sack. The irony of it all, is that Nyoka will be giving evidence before the inquiry sometime today.
And bet your bottom dollar, some fireworks can be expected. Nyoka a well-known Ear Nose and Throat surgeon, was born in Uitenhage outside Port Elizabeth, also served as Chairman of the Gauteng Cricket Board in 2001 and the Ministerial Transformation Review Committee.
But the game of cricket goes on. South Africa, who drew the recent Test (1-1) series against the Aussies, now host Sri Lanka in a Test and ODI series over the festive season.
The recent Test series unveiled a new sponsor that seemed an odd one to most fans. The one-day premier franchise provincial competition (now called the One-Day Cup) in fact has no sponsor after a local cellphone giant stopped sponsoring the tournament this season.
The crowds have certainly not been clicking the turnstiles during the ongoing provincial One-Day competition and the attendance during the recent Test series was no great shakes either.
The Proteas had made it clear when the Aussies arrived that they were focused only on cricket and not what was happening on the sidelines as it regards the scandal.
That may be so and everyone’s innocent until proven guilty, but when a ship is rocking backwards and forwards in a stormy sea, it can be a rather unpleasant experience for everyone on board.
Can it sail into calmer waters and bring South Africa cricket back to a semblance of administrative normality?
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