The internal Khan Commission into the non-disclosure of staff bonuses actually protected Cricket SA (CSA) chief executive Gerald Majola, retired judge Chris Nicholson said on Friday.
“This commission was set up to protect Majola from any inquiry... and to minimise any fallout to him,” Nicholson told reporters in Pretoria.
“The commission exonerated Majola and he was repaid his bonus, with interest.”
The Khan commission was an internal inquiry by CSA into the bonus issue in 2010. It was headed by the current acting president of CSA, AK Khan.
The inquiry was tasked 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 Majola, former CSA chief operating officer Don McIntosh, and other 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.
Nicholson said Majola's non-disclosure should be referred to the National Prosecuting Authority.
“Such investigations should also include whether any provisions of the Prevention and Combating of Corrupt Activities Act, 2004 ... have been contravened,” he said.
“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.
He said a prima facie case existed against Majola.
“We believe there is a prima facie case of non-disclosure concerning the bonuses and irregularities with regard to travel and other costs,” said Nicholson.
Majola's contract provides for suspension with pay for up to 180 days, pending the conclusion of the inquiry.
The committee recommended that the board consider this.
“It would be in Majola's own interests to give him time to prepare his defence, unfettered by his normal duties.”
Nicholson said Majola was the dominant force in the allocation of bonuses and not McIntosh.
The committee was also mandated to investigate the legality of expenses incurred by Majola.
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.
Majola claimed travel expenses for his children and wife and blamed it on a mistake made either by a travel agent or his professional assistant.
He, however, 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... 1/8when 3/8 the said flights were undertaken.”
National Treasury accountant general Freeman Nomvalo said if the matter had been dealt with in the correct manner this inquiry would not have been necessary.
“In fact what should have occurred should have been an independent disciplinary inquiry,” he said.
When asked whether Majola should step down, Nomvalo said if those involved were serious about acting in the best interests of the sport, they would do the right thing.
Michael Owen-Smith, CSA executive consultant, on Friday said Majola was studying the report of the Nicholson committee.
“ 1/8He 3/8 will make a public response once he has completed that process,” said Owen-Smith.
CSA received the report on Thursday evening and will circulate it to its board members.
Board members will also be advised of their rights and powers by CSA's senior counsel.
“Once this procedure is in place a meeting of the CSA board of directors will be convened to consider the recommendations of the Nicholson committee,” said Owen-Smith.
The board will report back to Mbalula by April 9.
Next week Mbalula will brief the media, the presidency and the state law advisors on the report. – Sapa