Mbalula holds all the aces for Majola

2012-03-10 18:41

CSA chief executive Gerald Majola finds himself having to fend off bouncers and dig out yorkers after Judge Chris Nicholson tore into him in judgment and made some serious recommendations.

Nicholson said Majola’s non-disclosure of the much-talked about bonuses should be referred to the National Prosecuting Authority (NPA).

However, NPA spokesperson Mthunzi Mhaga said they had noted the inquiry’s recommendations, but said that they had no mandate to investigate because they are the prosecutorial component of the criminal justice system.

“We wish to point out that the NPA has no investigative mandate nor does it have the capability to investigate any criminal matter as that is the sole responsibility of the police,” he said.

Hawks spokesperson McIntosh Polela said they did not want to comment on the issue as they were not part of it.

“I don’t want to get drawn into it because the Hawks were not even mentioned in the report,” Polela said.

The judge said there was prima facie evidence that Majola had contravened the Companies Act.

“The committee is of the view that there is a prima facie case that Majola contravened sections 234, 235 and 236 of the Companies Act.

“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, not McIntosh (former chief operations officer Don McIntosh), was the dominating force behind the allocation of the bonuses and not an unwilling recipient as he sought to portray himself,” Nicholson said.

Among others, the inquiry has recommended that:

» Majola be suspended by the CSA board for six months with full pay pending an external disciplinary enquiry with the board considering the following reasons: To allow a pro-forma prosecutor free access to all witnesses and documentation at CSA and for Majola to prepare his defence;

» The monies paid to Majola and former COO Don McIntosh could be recoverable in civil proceedings;

» The South African Revenue Service (Sars) be approached to examine the Section 21 status of CSA and ascertain whether CSA is complying with its tax exempt status.


If CSA is not complying, then Sars should put measures in place to ensure the tax exempt status is maintained.

» The identification of suitable candidates with the necessary skill and experience to lead the new CSA dispensation.

» The decision taken by the CSA board on August 19, 2011 to give Majola a severe reprimand due to his insufficient bonus disclosure be rescinded.

Sars spokesperson Adrian Lackay said the revenue service would undertake an investigation into the cricket bodies’ Section 21 status if they were requested to do an investigation by the sports minister and the CSA board with the possiblitity of criminal charges depending on the merits of the case.

“A Section 21 body is usually penalised for outstanding income tax.

“There is a possibility for criminal procedures but they depend on the circumstances of the case,” he said.

Majola was spared no blushes by the retired justice, who said his perceived lack of knowledge about the Companies Act – which he contravened by not disclosing his bonus to the remunerations committee and former CSA president Mtutuzeli Nyoka – was a broad denial which was contradicted by the extensive ignorance of his corporate experience, which included the fact that he was a director of seven other companies.

McIntosh’s resignation from CSA did not save him from censureship as he is still liable to pay back monies received in terms of the bonuses.

In terms of the irregular travel expenses incurred by Majola and his family, Majola admitted they were not supposed to use CSA funds for their jetsetting trips, but it also emerged that the flights would not have been signed off without his permission.

“It is clear that without authorisation from the board in general or for a particular trip, the tickets should not have been paid as they could not, in the normal course, be in furtherance of CSA’s business,” Nicholson added.

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