Cricket South Africa’s chief executive Gerald Majola faces a further legal battle to clear his name after accountancy firm KPMG found that he may have breached the Companies Act.
Cricket SA’s board of directors met in Johannesburg on Saturday and resolved to accept the recommendations of KPMG, who conducted a forensic audit of the organisation. KPMG found that there was “possible irregular conduct in respect of the Companies Act”.
Mtutuzeli Nyoka, Cricket SA’s president, confirmed that the possible irregularities related only to the conduct of Majola and it was confirmed that legal advice would be sought. “The breach in terms of the Companies Act refers basically to the CEO,” said Nyoka.
The irregular conduct is understood to relate to Majola’s failure to properly inform CSA’s Remuneration Committee about the bonuses he and senior CSA staff received for the hosting of the Indian Premier League and the ICC Champions Trophy in 2009.
KPMG found that no money was missing from CSA’s coffers but recommended that the remuneration and travel allowances’ policy of CSA needed to be reviewed. Nyoka had alleged earlier this year that R68-million was missing from CSA, though the organisation argued that the money had been held on behalf of the Board of Control for Cricket in India as part of running costs for the IPL.
The Board were given an executive summary at on Saturday morning’s meeting, but were later furnished with a full copy of the report. Nyoka said that the report would be made public later this week once CSA had met with KPMG.
“The purpose of getting legal advice is that we get an informed decision about the issues that have been raised,” said Nyoka. Cricket SA would be seeking further advice from the South African Sports Confederation and Olympic Committee as to which legal procedure to follow. “We’ve undertaken to seek the assistance of Sascoc so that together with CSA we find the appropriate expert to help us look into this matter.” Nyoka said that whatever disciplinary steps would be undertaken would be done “on an urgent basis”.
AJ Sooklal, the chairman of CSA’s legal and governance committee, said KPMG had not judged Majola’s conduct. “The KPMG recommendations speak to the fact that legal advice needs to be sought, with respect to the anomalies found in the report. It was made quite clear by KPMG that they were not pronouncing on the guilt or innocence of any party in the report and that it would be premature to pronounce in that regard. The guilt or innocence of any party mentioned in the report will have to be tested before a disciplinary inquiry or any other forum which CSA would seek.”
The recommendation to seek disciplinary action against Majola is certainly far stronger than those made by vice-president AK Khan’s inquiry last year which looked into the R4.7-million in bonuses paid to Majola (who received R1.8-million) and CSA administrative staff for the hosting of the IPL and the Champions Trophy. Khan’s inquiry merely “cautioned” Majola. As for KPMG’s recommendations on travel and remuneration, Nyoka said CSA would have to establish “some kind of committee to ensure we tighten up in terms of our travel policy”.
Khan’s committee found that Majola had wrongly used CSA funds to pay for his children to fly with him in the country. He was made to payback R28 000 to CSA. -Sunday Independent