The sport ministry’s committee of inquiry into the financial affairs of Cricket SA (CSA) adjourned on Friday after a final oral submission made by Judge Mervyn King.
King’s testimony brought the committee’s public hearings, chaired by retired judge Chris Nicholson, to a close.
Oral submissions began at the end of November after the inquiry was announced by Sport Minister Fikile Mbalula on November 4.
It was prompted by a KPMG report recommending that CSA's remuneration and travel allowance policy be reviewed.
Others who have appeared before the committee, include CSA CEO Gerald Majola, former CSA presidents Mtutuzeli Nyoka and Norman Arendse, former CSA chief operating officer Don McIntosh, and former CSA (then the United Cricket Board of SA) managing director Ali Bacher.
The KPMG report found that the R4.5 million in bonuses that Majola, McIntosh, and other CSA employees received from hosting the Indian Premier League and ICC Champions Trophy in 2009 were kept secret from CSA's remuneration committee (Remco).
It indicated that Majola had breached the Companies Act on at least four occasions by not disclosing the bonuses to the CSA board and to Remco.
King said the board of a body such as CSA should have a majority of independent directors for good governance.
The union dealt “with millions of rands”, suggesting a board the size of the CSA board, with 20 members, could be cumbersome.
With so many members it could become difficult to practice intellectual honesty.
King said good governance was about not hesitating to deal with conflict.
“If you have any conflict... put it on the table.”
A former Supreme (High) Court judge, he chaired the King Committee on Corporate Governance, which issued its third and last report in 2009.
In the course of his career, he advised the then UCBSA on corporate governance issues. He also arbitrated disputes between provinces.
In 2008/2009 he took part in the formation of the first legal and governance review committee within CSA.
The committee existed to ensure CSA complied with policies and procedures to do with all aspects of good governance.
In his testimony, King said he was asked in May 2009 to address a CSA board meeting on governance.
“I was requested by Mr Majola to attend a board meeting of Cricket SA... which was held at OR Tambo International Airport. Board members had flown in from all over the country.”
He said he spoke about corporate governance and conflict of duties at the meeting.
He said he knew some of the people sitting at that board meeting were very experienced in board matters and that his presentation was not “novel” information to some board members.
Nyoka told the committee when he testified on November 25 that Majola's “crime” was that he had not disclosed any information.
He said Majola's behaviour was misleading and deceptive and could not be blamed on naivety.
The committee has said it hopes to submit its final report to Mbalula by the end of February. – Sapa