Cricket SA CEO Gerald Majola should be suspended and made to give back the R1.75 million bonus payment he received for two cricket tournaments, a committee of inquiry recommended in a report released in Pretoria on Friday.
“Subject Majola to a disciplinary inquiry... prosecuted and chaired by independent senior advocates, chosen by the chairperson of the Society of Advocates,” the committee said. It also recommended that the matter be referred to the National Prosecuting Authority.
“Should this disciplinary hearing make adverse findings against Majola and mete out sanctions which he considers unlawful, unfair, or unjust, he can utilise... 1/8the 3/8 Labour Relations Act, including the 1/8Commission for Conciliation, Mediation and Arbitration 3/8 and Labour Courts, as he wishes.”
Majola's contract provided for suspension with pay for up to 180 days, pending the conclusion of a disciplinary inquiry.
“It would allow a pro-forma evidence leader/prosecutor free access to all the witnesses and documentation at CSA,” the committee said.
“It would 1/8also 3/8 be in Majola's best interests to give him time to prepare his defence, unfettered by his normal duties.”
The R1.47m bonus payment made to CSA former chief operations officer Don McIntosh should also be reclaimed, recommended the committee, which was headed by retired judge Chris Nicholson and investigated the non-disclosure of staff bonuses at CSA.
“We believe that the bonus payment to both Majola and McIntosh were not properly authorised and should be reclaimed.
“The amounts of money paid at the instance of Majola and McIntosh to themselves and other members of staff may be recoverable in civil proceedings.”
Sports Minister Fikile Mbalula appointed the Nicholson inquiry in November to investigate CSA's failure to implement recommendations by auditing firm KPMG.
KPMG found that bonus payments of R4.5m to Majola, McIntosh, and other employees, had been kept secret from CSA'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.
In the report, it said investigations by the NPA should include whether Majola and McIntosh breached any provisions of the Prevention and Combating of Corrupt Activities Act 2004, especially sections 10 and 34.
It also believed there was a prima facie case that Majola had contravened sections 234, 235 and 236 of the Companies Act.
There was also maladministration with regard to Majola's travel expenses relating to his claiming of travel expenses for his children and wife.
“ 1/8These 3/8 were beyond Majola's duties for CSA on his own behalf and on behalf of his wife and children.”
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.
He blamed it on a mistake made either by a travel agent or his professional assistant and admitted that CSA should not have reimbursed him.
Recommendations on CSA's governance structures were also made in the report.
The committee said CSA should elect a smaller board, with a majority of independent, professionally skilled, non-executive directors.
“We would recommend that a board be constituted, consisting of nine non-executive directors, to be voted for by the affiliates, with each director being required to enjoy two thirds support from the total of affiliates.”
The other directors should consist of a CEO, a treasurer and a secretary.
Candidates for the board positions should have the support of two thirds of the affiliates.
“The removal of directors, in similar fashion, will require two thirds of the votes of the affiliates.”
Any “major” changes in cricket, such as an alteration in tournaments and franchise composition, should also require two thirds of the vote.
“Obviously, amendments will have to be made to the present CSA constitution, to bring about this restructuring and regard will have to be had to the correct procedures to achieve this,” the committee said.
CSA obtained Section 21 status – as a non-profitable organisation – on the basis that it devoted substantial revenue to cricket development in previously disadvantaged areas.
“We would recommend to the minister that the SA Revenue Service be approached and requested to examine the Section 21 status of CSA and ascertain whether CSA is complying with the tax exempt status conditions established.” – Sapa