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- Cricket SA has published the summary findings of the Fundudzi Report compiled by its Bowmans attorneys.
- Former CEO Thabang Moroe is at the center of the findings, with allegations of corrupt practices and lack of monitoring of company processes at the center.
- Members Council representative John Mogodi presented the findings and says he relented to release of the summary after pressure from the media, stakeholders, the sponsor and the sports minister.
Cricket South Africa (CSA) Monday revealed allegations of corruption against the former CEO Rejoice Moroe, its failure to comply with the designation processes, as well as the revocation of the accreditation of the media and the spending of the highly publicized credit cards, which were at the heart of the Fundudzi forensic services audit report.
Following pressure from the media, sponsors and stakeholders, including Sports Minister Nathi Mthethwa, Member Council representative and non-independent director of the board, John Mogodi, read the summary of findings of the Fundudzi Report compiled by the CSA Bowmans attorneys.
CSA had previously kept the Fundudzi report private, but decided to release the summary “in the interest of cricket and to improve relationships.”
“Following requests from the Ministry of Sports, Arts and Culture, the South African Sports Confederation and the Olympic Committee (SASCOC), members of the media, and concerns from sponsors and employees about the content of the Fundudzi Forensic Report , CSA, with legal advice, decided to make a summary forensic report available to all interested parties, including members of the cricket-loving public, through the media and other distribution channels.”Mogodi read from the CSA statement.
“The full forensic report was made available to the CSA Council of Members for inspection, subject to certain conditions related to confidentiality, including the execution of nondisclosure agreements, in line with the organization’s protection.
“For the sake of cricket and to enhance relationships, the CSA Council of Members unanimously agreed to make the Summary Forensic Report available to all interested parties, including the CSA Board and its executives, and subsequently to all interested parties, including members of the media.
“It is important to note that the summary of all findings and recommendations (“Summary Forensic Report”) is a direct excerpt from the Fundudzi Report and has not been modified by CSA’s attorneys, except for the issues detailed below.“
Fundudzi was appointed in the wake of Moroe’s suspension in December to investigate CSA’s board and executive activities for the period from 2016 to 2019, the 20 findings of which were delivered to the board on July 31. Moroe was fired a month later.
Some of the most damning findings were that Moroe allegedly:
- You did not follow the procurement processes in the appointment of ‘Service Provider X’; Y
- It did not act in CSA’s best interest under the Companies’ Section 76 (3) (b) because it caused CSA to pay ‘Service Provider X’ R3 019 244.82 without following the Acquisition Policies and Procedures.
As a result, Fundudzi recommended that CSA consider:
- Registration of a criminal case under the terms of article 34 of Law 12 of 2004 on Prevention and Fight against Corrupt Activities.
- Obtain legal advice regarding the advisability of taking legal action to recover the funds paid to ‘Service Provider X’ as there is no evidence of the provision of services.
CSA said “Service Provider X” could not be named as there were potential recriminations and legal processes they could follow, with Bowmans’ legal advice.
The deal Moroe crafted between CSA and Global Sports Commerce (GSC), which were granted all broadcast and commercial rights to the Mzansi Super League (MSL), was also subject to great scrutiny by Fundudzi’s auditors.
Fundudzi discovered, in the GRC agreement that ran until 2023 in August last year, that Moroe allegedly:
- You did not act in good faith and for a proper purpose in terms of Section 76 (3) (a) of the Corporation Law because you did not inform FinCom [Finance Committee] and the Board that due diligence was not conducted on GSC.
- You did not act in the best interest of CSA in terms of Section 76 (3) (b) of the Companies Act by failing to ensure that due diligence was carried out and the Bank Guarantee was obtained; Y
- He did not act with the degree of care, skill and diligence that can be reasonably expected of a person performing the same function in relation to the company in terms of Section 76 (3) (c) of the Companies Act.
- It did not ensure that the FinCom and the Board’s instructions regarding the provision of the due diligence report were followed.
- It did not ensure that FinCom and the Board make decisions based on complete and properly presented information.
- It did not ensure that CSA would not suffer losses or potential losses arising from GSC’s breach of its obligations in cases where its bank guarantee was not obtained.
The Fundudzi Report also delved into the use of the company’s credit card in the organization and blamed the former executive director for not controlling his expenses more rigorously, although the summary does not allege that Moroe himself has abused the card. credit of the company. .
“[CSA
must] Instituting disciplinary action against Moroe for failing to ensure CSA has an approved Credit Card Policy, resulting in inappropriate use of CSA funds”The report said.
Fundudzi also recommended that, going forward, CSA should:
- Approve a detailed credit card policy.
- Provide guidelines related to alcohol spending in terms of the approved Credit Card Policy.
- Provide guidelines regarding the use of credit cards for travel expenses in terms of the approved Credit Card Policy.
- Limit the allocation of credit cards to the CEO and CFO.
- Centralize the acquisition of goods and services according to the provisions of the SCM [Supply Chain
Management] politics. - Keep track of all apparel items distributed to CSA staff and stakeholders to ensure items are distributed to the correct recipients.
The report also found that Moroe was guilty in the December media accreditation revocation debacle during the MSL, where five members of the media were denied access to matches due to their reporting, which was deemed a damning violation of constitutional freedom of expression.
Moroe was pinged, as well as the lack of guarantee that the South African Cricket Players Association (SACA) would receive timely payment.
Moroe was also held liable for intervention rights actions against North West Cricket (NWC), as well as the Western Province Cricket Association (WPCA), which were embroiled in a controversy.
In the WPCA debacle, it was alleged that Moroe “withheld information related to the signing of the lease as well as the withdrawal of the suspension letter by Stefanutti Stocks” and caused CSA to “incur costs of R565,000 related to the arbitration matter, costs that could have been avoided had it exercised due care, skill and diligence as expected of a director.”
It is alleged that Moroe “failed to ensure that the NWC maintains and provides audited financial statements for the two-year period 2016/17 and 2017/18.”
Additionally, the report also said Moroe did not follow proper processes in appointing Chantal Moon as Human Resources manager.
And Fundudzi said Moroe should have been sanctioned for allegedly “failing to ensure that the acquisition processes were followed in the appointment of (security company) NSA Vulindlela.”
