CSA cancels external probe into bonus payments

Cricket South Africa turned its back on an independent committee review of its bonus payouts controversy, because the decision to go for an external inquiry was not unanimous at the time and had been seen as "overreaction to the media storm".

A source close to CSA told ESPNcricinfo, that the setting up of an external review committee headed by Judge Pius Langa had "not been approved by all the relevant stakeholders" in South African cricket. The u-turn came about as CSA's annual general meeting held on August 21 constituted a new board which overturned the decision on the Langa inquiry, but offered no explanation until today.

The 'media storm' broke in early August after external auditors Deloitte announced irregularities in CSA's report. On the same day, CSA issued a statement declaring that bonus payouts totalling R4.7m were given out to 40 employees without authorisation from the CSA remunerations committee (REMCO). The South African board added that the bonuses had been paid out after the 2009 Indian Premier League and Champions Trophy, and that Judge Langa been appointed as head of an independent committee to examine the auditing discrepancy pointed out by REMCO.

The new board held a teleconference before the Langa commission was due to begin its work in mid-September, in which it was decided to move from an external to an internal inquiry. The board had unanimously agreed on the decision to disband the committee as "all the internal procedures had not been exhausted". Only when that exercise had been completed, the source said, could the CSA decide on whether an external review into the matter was necessary.

Andy O'Connor, a newly appointed CSA member told ESPNcricinfo he was "very comfortable with the decision taken", believing that it was the right thing to do. "Because the Board comprises independent members, there are checks and balances in place," O'Connor said.

However, not all parties believed that the CSA's turnaround was appropriate. A South African cricket insider said that CSA had "backpedalled" by disbanding an external commission and replacing it with an internal inquiry. "When that happens it affects transparency and credibility", he said.

The internal commission headed by CSA vice president AK Khan has completed most of its work and is in the process of compiling their report, hoping to have it ready in time for the next board meeting on November 19. The Khan commission report, the source said, would concentrate on two main issues which need clarification.

"They will look into why the payments were not reported on initially by REMCO or the auditors, and whether the allocation of payments followed precedent or not." The precedent being referred to here is the practice of paying bonuses to employees after staging major tournaments, which began after the 2003 World Cup.