Ken Borland

Sports Minister Fikile Mbalula announced on Thursday that he was happy with Cricket South Africa and their efforts in the whole process of implementing the Nicholson Commission’s recommendations.

Judge Chris Nicholson, who was appointed by Mbalula in October, recommended in March that CSA chief executive Gerald Majola be suspended, that irregular bonus payments be recovered and that a steering committee to restructure the board and their governance processes be appointed.

“We’re satisfied that CSA are implementing the Nicholson recommendations,” Mbalula said in Sandton on Thursday. “The board accepts they could have played a better role at the time they were called to do so, but there has been no resistance in going through this process and we are satisfied that we have done our duty.”

The CSA board were called to Sandton to report back to Mbalula on their progress and it was noticeable that a much better vibe existed amongst their members and they even went into a huddle, team-style, to consider the final statement released jointly by CSA and the sports ministry.

Mbalula said there was no need for the CSA board to resign.

“The CSA board of directors will remain in place until the next annual meeting at the end of September because it is in the best interests of stability and taking the game forward for all stakeholders.

“It’s just a few months to go for this board and then they can get a fresh mandate. We wanted to address the issues and bring stability to cricket. If we had asked the board to resign, then certain things would not have been done; they’ve put the process in motion,” Mbalula said.

But, in another blow to Majola, Mbalula stressed that it was imperative CSA recover all irregular bonus payments made to top management.

“It is a very clear Nicholson recommendation that unlawful bonuses be recovered from top management. Certain people were entitled to bonuses, but if these were outside the ambit of the law and were not properly declared, then it will be taken up.

“A civil process will be launched by CSA and it will be included in the disciplinary commission against Majola. The Hawks [South Africa’s Directorate for Priority Crime Investigation] have also been to CSA and are in the process of their investigation. They’re on top of it, but we don’t know the outcome yet. We have to respect the process because it’s not up to us to arrest people. It was a smooth operation, not done Hollywood style, because that way things get done properly,” Mbalula said.

The disciplinary enquiry is set to be completed by May 31 and John Myburgh SC is the independent chairman appointed by the Bar Council, which is also going to be approached to appoint a prosecutor.

Goverment is now also going to be involved in the restructuring of CSA, with Sports and Recreation SA representatives, as well as from Sascoc, being added to the steering committee.

The important issue of transformation has also been added to the steering committee’s terms of reference, including a financial model that will result in funds being made available for transformation. That transformation fund will be launched at the CSA chief executives’ committee meeting on May 8.

The final report of the steering committee will be submitted to the minister for his approval, followed by consultation with the provinces and then the national indaba on sport.

“The first steps in restoring public confidence and that of the sponsors and other stakeholders have been taken,” Mbalula said.

The noose tightened on suspended Cricket South Africa (CSA) chief executive officer Gerald Majola on Thursday as sports minister Fikile Mbalula announced he was facing both a criminal investigation as well as a civil claim for the repayment of illegal bonuses paid to him by the Indian Premier League (IPL).

Mbalula met with CSA in Johannesburg on Thursday to discuss the further implementation of the recommendations of the Nicholson Committee of Enquiry, which he appointed in October, into allegations of irregular bonus payments and poor corporate governance against Majola.

Judge Chris Nicholson announced on March 13 that Majola had “surreptitiously” received 1.8 million rand (174,000 euro) in unauthorised bonuses from the IPL, as well as irregular travel expenses, in contravention of the Companies Act.
Nicholson recommended that Majola be suspended, the bonus money be recovered and that CSA undergo restructuring of their board and governance processes.

Majola was suspended by the CSA board on March 17, with Jacques Faul appointed as the acting CEO and Willie Basson as acting president.

“We’re satisfied that CSA are implementing the Nicholson recommendations,” Mbalula told a news conference on Thursday. “But the recovery of bonuses was also a very clear recommendation and a civil process will be launched by CSA and included in the disciplinary commission against Majola.

“The Hawks [South Africa’s Directorate for Priority Crime Investigation] have also been to CSA and are in the process of their investigation. They’re on top of it, but we don’t know the outcome yet. We have to respect the process because it’s not up to us to arrest people. It was a smooth operation, not done Hollywood style, because that way things get done properly,” Mbalula said.

Mbalula said that for the sake of “stability”, the CSA board of directors would remain in place until the next annual meeting in September.

“It’s just a few months to go for this board and then they can get a fresh mandate. We wanted to address the issues and bring stability to cricket. If we had asked the board to resign, then certain things would not have been done; they’ve put the process in motion,” Mbalula said.

CSA had also agreed to launch a special fund for transformation on May 8, while the steering committee in charge of restructuring their board would now include representatives from the department of sport and the South African Sports Confederation and Olympic Committee (Sascoc).

The chairman of the disciplinary enquiry into Majola has been appointed by the Bar Council and will be John Myburgh SC, while CSA will now approach the Bar to appoint the prosecutor. Mbalula said the deadline for “the completion of the disciplinary procedure is May 31”.

“The board accepts they could have played a better role at the time they were called to do so, but there has been no resistance in going through this process and we are satisfied that we have done our duty,” the sport minister said.

Newly-elected acting president Willie Basson said on Wednesday that his aim as the new head of Cricket South Africa (CSA) was to improve the standard of the administration so that it rivalled the professionalism of the national team on the field.
Basson was elected on Saturday to take over from AK Khan, who was also an acting president before resigning last week in the wake of the Nicholson Inquiry which found CSA chief executive Gerald Majola had “surreptitiously” received 1.8 million rand ($237,000) in unauthorised bonuses from the Indian Premier League, as well as irregular travel expenses, in contravention of the Companies Act.
Khan had headed CSA’s own investigation which cleared Majola of any serious wrongdoing, but which was subsequently described as a “cover-up” by the Nicholson Inquiry.
“A personal motivation for my decision to become involved is a long-standing concern for the large gap between the level of professionalism of the on-field activities as opposed to the off-field activities. This gap is a burning issue. In 40 years of being involved in sport, I’ve never come to terms with how much the players sacrifice but administrators, in general, just bumble along and hardly ever face any consequences, except when they’re up for re-election every two years. It’s a major irritation for me, this obvious weakness has to be aggressively addressed and we have to raise the bar.

“The time has come for those responsible for guiding and executing off-the-field activities to have better game plans, executed more effectively and efficiently,” Basson told a news conference in Centurion on Wednesday.

Having suspended Majola pending an independent disciplinary inquiry as per the recommendations of the Nicholson Inquiry, Basson said the CSA board would now place Judge Chris Nicholson’s other main edict – that the governing body should undergo a review of its corporate structure – in the hands of experts.

“The mere fact that we have acknowledged the Nicholson report and accepted it in principle, means we have laid the foundation to appoint competent people to look at a re-invented cricket system. But it’s essentially a legal document and we need to translate it in the light of practicalities for a sports system, so that it leads to an improvement in the administration of the game,” Basson said.

The veteran cricket administrator was previously the chairman of CSA’s transformation committee and he said this would be a key focus in his term.

“In the light of the minister of sport’s recent comments on the status of transformation in the country’s major sporting codes, it will be a high priority item. The board has recently in principle approved a model that will be considered by the transformation committee tomorrow [Thursday]. A fund to support transformation initiatives at provincial level has also been established and is the first in the country,” Basson said.
Basson said restoring the battered image of CSA would also be one of the board’s areas of focus.

“The complex process of damage control of CSA’s reputation and image on the basis of systematic and on-going communication with stakeholders will be an important focus area. CSA is under no illiusion … cricket is beleagured and its image and reputation have been dented over an extended period of time. Image is any organisation’s biggest asset and the process will require cool heads. We have to pinpoint where our image has been harmed and the reasons for the negative public opinion,” Basson said.

The board of Cricket South Africa (CSA) on Saturday suspended chief executive Gerald Majola pending an independent disciplinary inquiry and agreed to follow the recommendations of the Nicholson Inquiry into the bonus scandal that has engulfed the administration of the game in the republic.

The Nicholson Inquiry, appointed by sports minister Fikile Mbalula, found that Majola had “surreptitiously” received R1.8 million in unauthorised bonuses, as well as irregular travel expenses, in contravention of the Companies Act.

Majola had initially been cleared of any serious wrongdoing by a CSA inquiry headed by acting president AK Khan, who has since resigned.

“The board of directors of CSA considered the recommendations of the Nicholson Committee of Inquiry and, after lengthy deliberations, have resolved to rescind all the findings of the Khan commission and to suspend Majola with immediate effect pending a disciplinary inquiry,” board member Oupa Nkagisang told a news conference in Johannesburg on Saturday.

The CSA board also elected a new acting president to replace Khan in experienced administrator and transformation committee chairman Willie Basson, while Jacques Faul of the North-West province has been appointed acting CEO.

Judge Chris Nicholson had announced on March 9 that Majola should face an independent disciplinary inquiry as well as possible criminal charges. Former ICC president Ray Mali, who chaired Saturday’s CSA meeting, confirmed that outside experts would handle Majola’s disciplinary process.

“We will have to get eminent people, reputable people, so that there are no comebacks. The board will meet on March 30 to decide who will head the disciplinary inquiry, but it has to be an independent person,” Mali said.

Mali said the board had considered dissolving itself.

“The entire issue of dissolving the board did come up, but that can only be decided by the affiliates and provinces. The board also discussed the New Zealand and Australian models of corporate governance and the Lord Woolf document that is at the ICC, but we have to engage the affiliates and outside stakeholders about that. It’s not just a CSA matter.”

The CSA board stopped short of issuing an apology for their backing of Majola, despite Mbalula making a suggestion on Friday that they should all stand down because they have lost the respect of the South African public.

When asked if the CSA board were apologetic, Mali said: “If the spirit of cricket is not there, then it is not palatable, and it has not been there for the last two years. Cricket needs gentlemen and ladies, people who are above board, but things have not gone well.

“The steps we took were based on the recommendations of people we believe were properly qualified – accountants and lawyers,” Mali said.