Cricket SA (CSA) chief executive Gerald Majola was “disappointed” on Thursday that millions of rand he received in bonus payments had been given more attention than false allegations of missing funds.
Majola was reportedly found by auditors KPMG to have breached the Companies Act in four instances after awarding himself R4.15
million in bonuses without following correct CSA processes.
“KPMG was called in to carry out a forensic audit of CSA after repeated allegations that some R68 million was missing from the organisation,” Majola said in a statement.
“The audit findings show that no money is missing from CSA.
“Unfortunately now that the forensic audit result has proven as untrue the allegations of missing millions that were published and printed in many newspapers, there is an attempt to deflect attention from these false claims that led to the audit.
“The audit was never about the amounts paid to the CEO as my remuneration is not secret and is published in CSA’s annual report.”
CSA president Mtutuzeli Nyoka had repeatedly called for an independent investigation into financial impropriety at the federation, and he was sacked shortly after Majola was cleared by an internal hearing last year.
Nyoka told the South Gauteng High Court, which later forced CSA to reinstate him, that R68 million had gone missing from one of the federation’s bank accounts.
The cricket body revealed that the funds had been held as running costs for the 2009 Indian Premier League (IPL), but called for an independent audit after Nyoka was reinstated.
KPMG confirmed there were no funds missing from CSA’s coffers, but suggested the federation approach legal counsel to investigate possible misconduct regarding the fiduciary duties of directors.
CSA accepted KPMG’s recommendations and said on Wednesday that the SA Sports Confederation and Olympic Committee (Sascoc), engaging with the sports ministry, would seek necessary legal counsel to act on behalf of the cricket body to resolve the matter.
Majola defended himself on Thursday, saying he had paid back the bonuses, awarded to staff for hosting the IPL and Champions trophy tournaments, during the initial internal investigation which was led by CSA vice-president AK Khan.
Majola was cleared by the Khan commission and was repaid the money.
KPMG, however, reportedly found that Majola and former CSA chief operations officer Don McIntosh had allegedly withheld information regarding the bonus payments.
“For the record, to protect the company’s interest, when questions were asked about the bonus, I voluntarily paid back the bonus I had been awarded,” Majola said.
“After the matter was investigated by CSA, the bonus was repaid to me.” He said whoever had leaked the KPMG report to the media this week had attempted to discredit him because the bonus payments, amounting to more than twice his annual salary, had been paid over two financial periods.
“Related to this has been the attempt by those that have leaked the report to create the impression that the bonus amount quoted was paid in one financial year,” he said.
“The amount has been bundled together to create the impression of an excessive bonus, leaving out the special circumstances of hosting two international events, the IPL and Champions Trophy, and that the amounts were paid in two separate financial years.”
Majola said the audit had been ordered to investigate alleged missing funds, and he was disheartened that the focus had shifted to the issue of bonus payments.
“I’m deeply disappointed that there is this attempt to change the focus of the KPMG audit now that no missing millions have been found,” he said.
“There isn’t even an admission that the allegations that led to the audit were without any substance.
“I have always acted in the best interests of CSA and will continue to do so.” – Sapa