CSA chief Gerald Majola likely to face Prosecuting Authority probe

Cricket South Africa CEO Gerald Majola paid huge bonuses to himself and his staff during IPL 2, according to the Nicholson committee report Getty Images

Pretoria: Mar 9, 2012

CSA chief Gerald Majola and former finance director Don McIntosh may face a probe by the National Prosecuting Authority (NPA) over huge bonuses that the former paid to himself and other staff during the second Indian Premier League in 2009.

This was the main recommendation emanating from the three-month inquiry in which damming evidence against Majola was made by former and current CSA board members.

“(The NPA investigation) should also include whether any provisions of the Prevention and Combatting of Corrupt Activities Act, 2004(Act No. 12 of 2004) have been contravened,” Nicholson said at a media conference at Pretoria on Saturday.

“Section 10 provides that any person who is a party to an employment relationship and who, directly or indirectly, accepts from any other person any unauthorised gratification is guilty of the offence of receiving unauthorised gratification.

“The committee is of the view that there is a prima facie case that Majola contravened sections 234, 235 and 236 of the Companies Act,” said Nicholson.

The inquiry was instituted by Mbalula after nearly two years of wrangling over the IPL bonuses which saw CSA president Mtutuzeli Nyoka ousted in absentia twice after he called for an independent inquiry into the matter.

Following Nyoka’s return after court action, he initiated an external inquiry by auditors KPMG which said that Majola was being in breach of the Companies Act.

Majola admitted to this at the Nicholson inquiry, citing naivet on the Act and his fiduciary duties, but corporate governance expert Mervyn King testified how he had led a workshop on the subject at which Majola was present before the IPL 2.

The tournament was played in South Africa due to security concerns at the time in India.

Nicholson recommended that Majola be suspended on full pay pending the findings of a disciplinary enquiry.

CSA and Majola declined to comment on the report of the inquiry, except for a terse one-line statement: “Cricket South Africa CEO Gerald Majola is studying the report of the Nicholson committee and will make a public response once he has completed that process.”

Nicholson also found that the CSA internal Khan Commission into the non-disclosure of the IPL bonuses was an attempt to protect Majola, especially since that commission exonerated Majola and repaid the bonus which Majola had in the interim returned.

On the second mandate of the inquiry to investigate the legality of expenses incurred by Majola, Nicholson said his committee was “sceptical” of the claim by Majola that payments in respect of travel by his wife and children were an error by his professional assistant or a travel agent.

“We believe there is a prima facie case of non-disclosure concerning the bonuses and irregularities with regard to travel and other costs,” Nicholson said.

Mbalula will discuss the report with the presidency and the state law advisors before addressing the media next week. (PTI)