The CEO of the United Cricket Board of South Africa (UCB), Gerald Majola, was on Monday cleared of any misconduct by a commission of enquiry.
The two-man commission was appointed by the general council of the UCB to inquire into, and report on, the alleged misconduct of Majola and certain members of staff referred to in media reports and various independent forensic reports.
The hearing arose out of the alleged misappropriation of UCB funds by the then general manager of finance and administration, Diteko Modise.
The council appointed one of its members, Advocate Norman Arendse, SC, and an independent senior counsel, Advocate Ishmael Semenya, SC, to co-chair the enquiry.
The commissioners found that Majola had inherited a financial management system that was ”handled more on trust that on adherence to known and defined written systems”.
”As the finances of the UCB grew post-isolation, the UCB appointed a manager: finance and administration before the appointment of Modise.
”Even during this period, there were no financial systems in place. The parties conducted the financial affairs of the UCB manually, and on good faith.”
They added that Majola had commissioned a written policy and procedure manual for, inter alia, finance. It was not evident why there was a two-year lapse between the creation of the document and its final acceptance and implementation.
”It is also evident that there were no written policies and procedures covering the period within which the funds of the UCB were misappropriated.
They questioned why the external auditors did not detect the irregular transfers of monies but identified with the recommendations of the auditors that no disciplinary proceedings would be justified against Majola.
”It is the evidence that he initiated the process to create a framework policy to manage the finances of the UCB. The misappropriation of the funds occurred without any conduct wanting on his part.”
However, they did find it untenable that the UCB would do business with companies in which officials of the UCB and members of staff, both past and present, would hold financial interests, even if, as was the case with Majola, his interest in the company was divulged.
”As a matter of principle it does not matter to the commission whether he has derived any financial benefit as a result thereof.
”The practice of holding financial interest in a company that does business with the UCB must be pronounced upon by the general council and Cricket SA as a matter or urgency.
”The practice to believe that once financial interest has been disclosed [it] renders the practice acceptable is unfortunate.
”It seems to us that staff is placed in an invidious position where they have to make decisions knowing that the entities it is dealing with are connected to the senior members of staff or officials.”
UCB president Ray Mali said the most important finding of the commission is that Majola cannot be faulted for misconduct in any way.
”We have always had confidence in his ability and his integrity, and the way is now clear for him to take us operationally into the watershed season of 2004/05.
”He is a young man with vision, and he must be given the space in which to take cricket into this new era.
”It is also important that the commission agreed with the recommendations and findings of three independent auditors that the UCB put in place to look into the alleged misappropriation of funds and possible breaches of good corporate governance.
”As far as the alleged misappropriations are concerned, this unfortunate matter is now in the hands of the police and the courts.” — Sapa