From May 2009 to May last year, Cricket South Africa’s CEO received four bonuses amounting to R4150387. Two of the bonuses were not declared to the appropriate CSA sub-committees.
This emerges in a summary of KPMG’s forensic audit in The Times’s possession.
The report was discussed for the first time at a CSA board meeting last Saturday.
The four bonuses included two CSA annual bonuses, one bonus from the Indian Premier League and one from the International Cricket Council, which was paid for hosting the Champions Trophy in South Africa in September 2009.
According to KPMG’s audit, presented to the CSA board on Saturday, the cricket body’s remuneration committee was unaware of bonuses negotiated by Majola with the IPL and the ICC. All four bonuses were over and above Majola’s monthly salary.
“The members of remco [remuneration committee] informed us that they were unaware of the IPL and ICC event bonuses that had already been paid to Majola during the financial year under review.
“They were adamant that these bonuses should have been disclosed to them,” says the report.
The KPMG audit is critical of Majola in other respects. In relation to IPL bonuses – Majola negotiated bonuses from the IPL for staff other than himself – the audit contends that he met IPL representatives in London in June 2009 by himself, although Don McIntosh, another senior tournament administrator, was in London at the time.
“We find that Majola should have disclosed his interest in the IPL contract … at the first board meeting and to CSA directors. This declaration should have been done in terms of 235, 236, and 237 of the Companies Act. No such disclosure took place.”
Majola is not the only CSA official criticised in the KPMG audit. McIntosh, former chief operating officer, contends that authorisation for his IPL bonus came from Majola as his superior.
But Majola contends that it was McIntosh, who was tournament director for the IPL tournament, an allegation McIntosh disputes.
“We conclude that Majola and McIntosh worked hand in hand and jointly calculated, determined and authorised the IPL bonuses without deferring to any other CSA official or body. They consequently determined and calculated their own bonuses.”
KPMG called McIntosh as a witness while the CSA internal inquiry under AK Khan did not. The Khan committee’s reason was that McIntosh had resigned from CSA.
Majola said the reports of the KPMG audit and internal inquiry confirmed no money was missing from CSA accounts. The organisation had been given “a clean audit without qualification”.
He welcomed scrutiny of CSA affairs. “Although a costly and emotional exercise”, it showed a “democratic style of leadership”.
