Inquiry rules against Majola

2012-03-09 11:54

There is a prima facie case that Cricket SA chief executive officer Gerald Majola had failed to disclose bonuses given to him and other staff members, retired judge Chris Nicholson has said.

Nicholson said Majola had failed to inform former CSA president Mtutuzeli Nyoka about his own negotiated bonus – arranged with the Indian Premier League (IPL) – thereby misleading Nyoka, and failed to inform Nyoka and CSA’s remunerations committee members about the schedules of the payment relating to the IPL agreement.

“Even though the initial agreement made no provision for the payment of bonuses, it transpired that Mr Majola had surreptitiously negotiated the payment of bonuses with the IPL in a meeting in London in June 2009. In the overwhelming view of our evidence, Mr Majola, not Don McIntosh (former CSA chief operations officer), was the dominating factor in the allocation of the bonuses and not the unwilling recipient he sought to portray himself as,” Nicholson said while releasing the findings of the inquiry into CSA, appointed by Sports Minister Fikile Mbalula.

“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,” Nicholson told reporters in Pretoria.

“We believe there is a prima facie case of non-disclosure concerning the bonuses and irregularities with regard to the travel and other costs.”

Majola’s contract provides for suspension with pay for up to 180 days pending the conclusion of a disciplinary enquiry. The committee recommended that the board should consider this, said Nicholson.

“It would be in Majola’s own interests to give him time to prepare his defence, unfettered by his normal duties,” he said.

Nicholson said Majola could not lean on prior bonus defences of the 2007 ICC T20 World Cup and the bonus paid to former CSA CEO Ali Bacher in 2003, saying that if they were wrong, they could not justify future wrongdoing.

“We do believe that there were numerous features that distinguished the tournaments from Majola’s bonus. Those bonuses were broadly approved by the appropriate committee in principle and as to the amounts involved,” Nicholson added.

Mbalula appointed the inquiry in November 2011 to investigate CSA’s failure to implement certain recommendations by auditing firm KPMG.

A KPMG report found bonus payments of R4.5 million to Majola, McIntosh, and other CSA employees, had been kept secret from the federation’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.

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