Cricket South Africa (CSA) has been advised on how to tackle the findings of a forensic audit, South Africa Sports Confederation and Olympic Committee (Sascoc) chief executive Tubby Reddy said on Wednesday.
“I sent a letter [on Wednesday] to the CSA president and chief executive outlining the process designed by the sports ministry and ourselves on appointing an independent person to look into this matter,” Reddy said.
According to media reports, a KPMG forensic audit report indicated that CSA chief executive Gerald Majola allegedly withheld information after receiving bonus payments for hosting the 2009 Indian Premier League and Champions Trophy tournaments.
Majola reportedly received further bonuses from CSA for the same work.
The report apparently also found that Majola had breached the Companies Act in four instances.
While auditors found no irregularities regarding CSA’s finances or any misappropriation of funds, Sascoc said the cricket body would need to appoint an independent person to propose further steps regarding the allegations against Majola.
“The main issue revolves around allegations of non-disclosure of funds based on the Companies’ Act,” Reddy said.
“The CSA chief executive disclosed bonus payments to the federation’s board at some stage but he did not follow the correct processes.
“An independent person will need to advise CSA on whether or not action should be taken, what options they have in taking action and whether or not their decision will stand up in court.”
CSA said in a statement on Wednesday that Sascoc, in agreement with the sports ministry, would seek the necessary legal counsel on behalf of the cricket body.
“Sascoc will forward the name of the recommended legal counsel to (CSA) board member Archie Pretorius, who was also a task team member who looked into this issue and is acting chairperson of CSA’s audit committee,” the federation said.
“Once the forensic audit report is finalised with the necessary adjustments which Mr Pretorius is working on with KPMG, Sascoc and the ministry, together with Mr Pretorius, will brief legal counsel identified.”
Majola and former CSA chief operations officer Don McIntosh had reportedly, according to the KPMG findings, “worked hand in hand and jointly calculated, determined and authorised IPL bonuses without referring to any other CSA official or body”.
Majola received R4.15-million in bonus payments between May 2009 and May 2010, amounting to more than twice his annual salary. — Sapa