Ken Borland

Judging by the summary of the Fundudzi Forensic Report released by Cricket South Africa on Monday, it would seem dismissed CEO Thabang Moroe failed “to act with the degree of care, skill and diligence that may reasonably be expected” on an almost daily basis and the report exposes just how shambolic the running of the game had become under his watch and that of the Board.

The Fundudzi Report was commissioned, according to non-independent director John Mogodi in his presentation on Monday, to “investigate various governance issues, lapses in CSA controls and governance oversights” between January 2016 and December 2019. And it uncovered an extensive list of actions and inactions that justified disciplinary measures against Moroe.

But certain other staff members, most notably former chief operating officer Naasei Appiah, who was dismissed in mid-August, are also implicated in misgovernance and the Board itself is accused of dereliction of their fiduciary duties.

Moroe, however, is mentioned a dozen times: for contravening the CSA Code of Conduct when he revoked five journalists’ media accreditation, his failure to ensure the South African Cricketers’ Association were paid their image rights timeously which amounted to treating the players’ union with disdain and causing CSA to suffer reputational damage; several instances where he failed to follow procurement protocols and did not act in the best interests of CSA; misleading the Board when it came to exercising their step-in rights with the Western Province Cricket Association, and in failing to ensure due diligence was done in signing Global Sports Commerce for the Mzansi Super League; excessive credit card expenditure and the irregular appointment of a consultant who was not qualified for the post as head of human resources.

The fact that the CSA Board were so easily misled by Moroe and others will tickle those who have long stated that many of the directors are not fit for office.

Former independent director Mohamed Iqbal Khan and current acting president Beresford Williams were both accused of contravening the Companies Act due to a conflict of interest surrounding FinCom’s decision to make loans to the Western Province Cricket Association.

The Board also approved the agreement with GSC despite never being shown the due diligence report they had previously insisted on and GSC’s failure to provide a bank guarantee. Only 8% of the R169 million the Board has approved in loans to their affiliates for stadium upgrades has been paid back since May 2017, with several of the provincial presidents that benefit from the loans sitting on the CSA Board.

Fundudzi also found that CSA have had no effective internal audit unit for the last four years and the extension of Khan and Dawn Mokhobo’s terms as independent directors last year contravened their own Memorandum of Incorporation.

Mogodi said CSA’s lawyers, Bowmans Gilfillan, had recommended disciplinary processes against other employees of CSA and that although it was still early days in terms of those investigations, “we have already taken action on many findings and the Board are determined to act without fear or favour. We will not tolerate fraud, corruption or mismanagement”.

Fundudzi recommended criminal charges be laid in respect of the Service Provider X deal which saw Moroe and Appiah, without following the correct procurement processes, approve payment of nearly R3.5 million for services that have not been delivered.

Cricket South Africa on Thursday officially parted ways with their chief executive Thabang Moroe, announcing that he has been fired with immediate effect for serious misconduct, but the size of his misdemeanours is only likely to be revealed in the coming months as the dismissed administrator’s legal team have already indicated they will fight his axing in court.

CSA’s brief statement on Thursday said the “decision was based on expert external legal opinion supported by the findings emanating from an independent forensic investigation” but they gave no details of what exactly Moroe had done wrong. And the CSA Board have already rebuffed requests for the forensic report to be made public, including from their own Members Council, which is scheduled to elect a new Board on September 5.

Many believe the report implicates the Board in many of the things Moroe has been punished for, a perception his legal team have supported.

At the time of his suspension, way back in December, Moroe had presided over a huge deterioration in CSA’s relationships with key stakeholders such as the players’ union, sponsors and media. He was also accused of excessive credit card spending and procurement irregularities.

The forensic investigators, Fundudzi Forensic Services, interviewed a range of stakeholders before submitting their report in May, since when CSA have supplied numerous different excuses for not finalising the matter more timeously.

Tellingly, Moroe did not avail himself of the opportunity to be interviewed by Fundudzi, a point CSA were quick to highlight in their statement on Thursday.

“Mr Thabang Moroe was offered sufficient opportunity to provide representations to the independent forensic auditors and to the Board regarding the allegations of misconduct, which opportunity he failed and/or refused to utilise,” the statement read.

Moroe’s legal team are likely to include this in any legal action they take, given that they also targeted the chairperson overseeing his disciplinary hearing, demanding that they be replaced by an independent figure.

As much as the CSA Board may now believe the Moroe matter is done and dusted, there are numerous parties who are determined to ensure the forensic report is made public, and the axed CEO will certainly be using it in his defence. The behaviour of the CSA Board will then be in the spotlight.

Cricket South Africa’s Board can look forward to more legal action against them as dismissed Head of Sales and Sponsor Relations Clive Eksteen announced on Tuesday that he was taking them to the CCMA for unfair dismissal.

Eksteen was sacked at the weekend based on a single charge that was added to his disciplinary hearing after he was suspended on October 29 for his alleged role in the non-payment of image rights to the players’ union. That extra charge was related to a loss of $100 000 the CSA Exco alleged the organisation suffered because Eksteen negotiated a deal with Amul, the multinational sponsors of South Africa’s T20 series in India last year, for an amount less than had been approved by the CSA Exco.

While Eksteen said he was cleared of all charges related to the non-payment of image rights – the presiding officer finding that the former Proteas spinner was in fact instrumental in the South African Cricketers’ Association eventually being paid – and an additional charge involving an agreement he was not even part of between the SABC and a sponsor, he was found guilty of Charge 5 and dismissed.

Eksteen said this was despite him providing evidence that the agreement with Amul was signed by his superior, chief commercial officer Kugandrie Govender, and that she knew how much they had offered before she informed Exco.

According to CSA disciplinary processes, any appeal can only be over sanction and needs to be handled by the chief executive, who is the legal officer. But acting CEO Jacques Faul is not allowed to be involved in disciplinary matters according to his contract, so he forwarded the appeal to the CSA Board, who last weekend upheld his dismissal.

“The Chair’s finding that revenue was lost was directly contradicted by the evidence of CSA’s employees, evidence she ignored. Subsequent to my conviction, I presented evidence in mitigation. This included a variety of reputable testimonials. The Chair refused to accept pertinent testimonials into evidence. She also refused to accept that Charge 5 was a minor charge, way less serious than the SACA charges on which I had been acquitted.

“In addition, I am in possession of evidence which exculpates me, which has come to light after the conclusion of the disciplinary inquiry, which evidence was known to CSA at the time. In these circumstances, I shall immediately be referring a dispute to the CCMA regarding my unfair dismissal. All of the evidence presented at my disciplinary inquiry, as well as the additional evidence which has now come to light … will be laid out before the CCMA. My attorney and I are totally confident that I will be vindicated in due course. Unfortunately, I believe I have been made a scapegoat for the shortcomings of others and I believe further that relevant evidence has been ignored or overlooked,” Eksteen said in his statement released on Tuesday.

The CSA Board, who thus far have failed to take any action against former CEO Thabang Moroe, who is suspended on full pay after losses of millions of dollars under his watch, even had the gall last weekend to issue a statement saying Eksteen had been fired after “transgressions of a serious nature”. They failed to mention it was over a theoretical loss of only $100 000 and that it had nothing to do with the dispute with SACA, who have even come out in support of Eksteen’s handling of their image rights dispute with CSA, which involved a reported amount of R2.4 million.

The Dolphins will enter the second day of their vital Sunfoil Series match against the Unlimited Titans at SuperSport Park in Centurion in a strong position after they dismissed the home side for just 267 and then reached 51 without loss at the close of play on the first day on Thursday.