CSA to probe its own bonus payments

2010-10-03 12:05

Cricket South Africa’s (CSA’s) inquiry into unauthorised bonus payments has taken a twist with the decision by CSA to hold an internal inquiry instead of appointing Mr Justice Pius Langa to oversee the process.

CSA’ president, Mtutuzeli Nyoka, told City Press this week that CSA’s presidents’ board had decided to dispense with Langa’s services in favour of an internal investigation.

“The board of CSA have decided to launch an internal investigation, so Justice Langa will not be appointed,” said Nyoka.

Nyoka refused to be drawn on any further questions but in an era where transparency is regarded as key to good corporate governance, CSA’s decision does raise a number of questions.

Not least of which is that the decision to hold an internal inquiry flies in the face of CSA’s own annual financial statement released on August 21.

In the statement CSA treasurer Hentie van Wyk noted that: “A review committee has been appointed by the board on August 11, 2010 to investigate all aspects of bonuses paid, travel and related expenses of senior staff and fringe benefits and recommend the appropriate action to be taken by the board in respect of these payments, including recommendations for improvements in controls and governance.”

In August CSA announced that an independent review committee under the chairmanship of Langa, and assisted by forensic auditors from KPMG and Deloitte, would conduct a probe into bonus payments totalling R4.7 million.

CSA chief executive Gerald Majola received R1.77 million and former chief operating officer Don McIntosh pocketed R1.45 million, while the rest of the money was split between 38 other CSA employees.

CSA received the money after the hosting of the Indian Premier League and the International Cricket Council (ICC) Champions’ Trophy last season.

The inquiry was due to start last week, but it has been reported that Langa, other than a verbal approach from CSA, had not been made aware of when the inquiry would start or what its mandate would be.

The review will now be under the control of newly elected CSA vice-president Abdool K Khan, who will be assisted by CSA’s head of audit and risk John Blair and chairman of the finance and commercial committee (Fincom), John Bester.

Khan said it was not his place to discuss CSA’s policy decisions, saying only that “I have been tasked with providing a report to the board and at the appropriate time a comprehensive and diligent report will be presented to the board”.

Majola has handed his bonus back, pending the results of the review, and when contacted by City Press about the change in the review process he simply said: “I cannot comment on the matter.”

Senior cricket officials were loath to be quoted on the change in the way the review will be handled, but there is growing disquiet that CSA is attempting to sweep the whole issue under the carpet. – MWP Media

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