Ken Borland

In an unprecedented move, Cricket South Africa company secretary Welsh Gwaza is set to be given his own personal assistant, but the controversial Thabang Moroe ally may find his empire-building cut short following the mentions of him in the Fundudzi Forensic Report released on Monday.

Asked to confirm on Monday whether CSA are busy with the appointment of a PA for Gwaza, CSA communications officer Sipho Rihlamvu said: “CSA considers vacancies based on each portfolio’s needs analysis and how the filling of such vacancies would best serve the organisation. These needs are presented to the relevant structures within CSA and signed off with the prerequisite approvals. Any consideration for the positions within CSA must satisfy the said criteria.”

Other sources have suggested Gwaza has requested a PA because of his “increased workload”, a sure sign that the company secretary is being given more responsibility and therefore more power.

But Gwaza could be one of the CSA staff members against which both Fundudzi and CSA’s lawyers, Bowmans Gilfillan have recommended disciplinary processes be started.

One of the most serious examples of misgovernance exposed by Fundudzi was the deal with Global Sports Commerce for the Mzansi Super League, which has now opened CSA up for losses of R27.5 million should GSC fail to honour the terms of the settlement. The CSA Board were given assurances by Gwaza, as well as former CEO Moroe and chief operating officer Naasei Appiah, who have both subsequently been fired, that due diligence had been done on GSC, but it was never presented to the Board, before Moroe authorised payment of R30 million to the sports management company.

Gwaza was also one of the Exco members who was aware that the South African Cricketers’ Association had not been paid the image rights money due to them from the 2018 MSL.

Other funds that CSA are trying to recover, as exposed by the Fundudzi Report, are the R3 019 244 given to ‘Service Provider X’ by Moroe and Appiah without following the Procurement Policies of CSA.

Moroe’s bungling of the step-in at the Western Province Cricket Association, with Fundudzi finding he misled the CSA Board, cost the federation R725 227 in costs awarded to WPCA by the arbitrator. His appointment of Chantel Moon, who was not qualified for the job, as head of human resources on a consultancy basis without following due process in August 2019 cost CSA nearly R1.7 million according to the report. Moon was also allegedly paid R1.25 million in 2017/18 for ad hoc HR work without a signed contract.

Appiah’s purchase of alcohol for R201 372 on the company credit card was also flagged by the forensic investigators, as was Moroe’s R64 830 booze bill.

In terms of loans to the affiliates, the WPCA owe CSA R57.7 million, while the total loan bill to all affiliates for stadium upgrades comes to nearly R169 million.

Most alarmingly, CSA could not provide the forensic investigators with documentation supporting the signing of the top 40 procurement contracts agreed between January 2016 and December 2019.

NSA Vulindlela were paid about R6.8 million for security services without a contract or Board approval, and without a tender process.

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.

The Members Council ‘owned’ the Fundudzi Forensic Report auditing the affairs of Cricket South Africa in the wake of the suspension of then-CEO Thabang Moroe from the moment they commissioned it last December and they are hopeful that they will finally get to see it without onerous conditions this weekend.

CSA announced in the early hours of Friday morning that the CSA Board of Directors and the Members Council would hold “a joint workshop this weekend to discuss critical matters” and while their statement was in response to Sascoc’s intervention in their affairs revealed on Thursday evening, provincial presidents have confirmed to The Citizen that Saturday’s agenda includes a discussion of the forensic report, which was completed in June.

“We will all be under one roof and hopefully we will at least get a partial view of the report that we will dissect and analyse. I’m pretty sure the forensic report will be made available, or at least what can be made public knowledge will be. This weekend is really make-or-break time for Cricket South Africa, I believe. And then hopefully we will meet with Sascoc on Sunday,” a Members Council delegate told The Citizen on Friday.

According to a president of a major CSA affiliate, efforts to get the organisation, which has postponed the AGM they were meant to hold on September 5, back on track by allowing the Members Council to be informed of any other directors or staff implicated in the misgovernance which saw Moroe being formally dismissed last week, have been hampered by the seven Board members who also sit on the Members Council.

“I’m disappointed by the Members Council to be honest, we just seem unable to make a decision, some representatives are just going along with whatever the Board members say,” the president said.

“There are seven other members of the Members Council and three of them have been especially vocal, but there seems to be a very serious conflict of interest amongst the Board because some of them earn double what their normal income would be by being directors. It’s a flaw in the system but Sascoc are dealing with the Members Council as we look at our Memorandum of Incorporation as well.”

According to their constitution, CSA have to hold an AGM by November 5.

It was an interesting day for CEOs of Cricket South Africa both past and present on Tuesday as the fired Thabang Moroe saw his plot to return to office delayed in the Labour Court and the acting incumbent Kugandrie Govender suffered the embarrassment of the organisation backtracking on her statement that White consultants would no longer be used unless there were exceptional circumstances.

Moroe approached the Labour Court on Tuesday to have his dismissal set aside because he believes the disciplinary process was unlawful, but he first of all had to convince the court that his application was urgent. CSA’s lawyers argued that the matter was not urgent and the court reserved judgement as to whether the matter should be held urgently or not. The court is expected to make its decision during the week.

Govender stated last week in a text message to Sport24 that following a meeting with the minister of sport Nathi Mthethwa, CSA “are now required to enforce Black consultants only until such time as the numbers are moving in the right direction and we can then revise this. It’s an internal measure to enforce that the change that should have happened organically over the years but didn’t, does actually now happen”.

The announcement created a storm of protest, with civil rights lobby group AfriForum threatening legal action against CSA and the Institute for Race Relations writing to the International Cricket Council to report the organisation for failing to respect the governing body’s constitution in terms of racial discrimination and political interference.

CSA issued a statement on Tuesday saying they were saddened by the media reports around their use of consultants. They called the stories “factually incorrect” even though they were quoting their own CEO verbatim.

“CSA has not taken and will not take a decision to work exclusively with Black consultants. The media reports around the statements made by our Acting Chief Executive are not a correct reflection of the sentiment that CSA had sought to convey. CSA therefore reiterates that it does not have a policy of excluding any racial grouping.

“As part of our corporate business model, CSA has adopted and subscribes to the country’s BBBEE Act and Affirmative Action policy. This means CSA has a moral and legal obligation to implement these two prescripts, while still embracing the need for all South Africans to live their cricketing dreams regardless of background, culture or ethnicity, and this includes the services that we procure from external service providers,” their statement said.

CSA went on to say transformation is a pillar for the organisation.

“It is, therefore, imperative that we constantly remind ourselves of its [transformation] importance in the way in which we conduct our business. As a democratic and non-racial institution, CSA is well aware of the need to provide equality and quality of opportunity to all and we do also emphasise that this has to be seen in the context of our unhappy history that for more than a century deprived the majority of our population from living their cricket dreams both on the field of play and in many other areas.”

The change of stance by CSA will now obviously attract the attention of Minister Mthethwa, who has been critical of the number of White faces in prominent positions at CSA. It is believed using exclusively Black consultants unless there are none available at the level required in order to keep the Proteas at the top end of the world rankings is exactly what CSA promised Mthethwa at their meeting last week.

It is also a loss of face for Govender, whose meteoric rise at CSA saw her appointed acting CEO on August 19 after Jacques Faul stepped down.