South Africa news August 13, 2010

CSA to probe "unauthorised" bonus payments to employees

Cricinfo staff

Cricket South Africa has set up an independent review committee to investigate the unauthorised payment of 4.7 million rand ($641,000) in performance bonuses to 40 CSA employees following the 2009 IPL tournament and ICC Champions trophy. The committee will be headed by former South Africa Chief Justice P Lanaga and assisted by forensic auditors from KPMG and Deloitte.

According to CSA, the bonuses include 1.77 million rand ($241,000) paid to CEO Gerald Majola and 1.45 million rand ($198,000) paid to former chief operating officer Don McIntosh, with the balance being divided between the remaining employees. In the wake of the announcement, Majola has decided to repay the total bonus paid to him until the investigation is complete. McIntosh, who resigned from CSA last month, told the Times that his resignation had nothing to do with the bonus.

The decision to probe the bonuses arose after the remuneration committee of CSA indicated that it had not authorised the payments. "As a result, the board of CSA at a board meeting on 4 and 11 August resolved to subject the entire matter to a comprehensive review by an independent committee," CSA said in a statement.

A written report on the matter has already been sent to the South Africa Minister of Sport and the committee will submit its own report to the CSA board once the investigation is complete. The committee is expected to begin its review in mid-September. CSA's final accounts for the year, which are to be officially adopted on August 21, will accordingly reflect the investigation.

The 2009 IPL was moved to South Africa at the last minute due to security concerns in India. The hosting of the tournament resulted in a dispute between the Gauteng Cricket Board (GCB), which manages the Wanderers Stadium in Johannesburg, and the IPL.

After the tournament ended, the GCB levelled allegations of mismanagement against Majola, the BCCI and the league. CSA responded by stripping the Wanderers of its international status. The Wanderers was reinstated as an international venue in August last year.