Irregular bonus payments to Majola continued even after IPL
Johannesburg: Cricket South Africa CEO Gerald Majola continued to receive bonuses even while the payments to him for the 2009 IPL held here were being investigated, the Nicholson inquiry into CSA`s financial affairs has been told.
CSA board member Ernest Molotsi told the inquiry established by sports minister Fikile Mbalula that for the 2010-2011 fiscal year, Majola received a bonus of 1.4 million rands which was paid into his account before CSA`s remunerations committee had approved it.
"The head of the remunerations committee, Thandeka Mgoduso had said she was not aware that the bonuses had been paid because the matter had not been finalised by the committee. It was still under discussion, therefore that bonus was not authorised," Molotsi said.
Colin Beggs, the former CSA board member who first blew the whistle on the IPL bonuses paid without declaring to the board, told the inquiry that Majola did not believe it necessary to inform the board about it.
"When (Majola) was asked about the disclosure he simply said: `If (captain) Graeme Smith does not have to disclose anything, I do not see why I should`," Beggs said.
"It was not right for any official to receive money from any other organisation directly," Beggs said.
"If the IPL wanted to make a contribution, the money should have gone directly to CSA," Beggs said.
The IPL`s second edition was held in South Africa two years ago due to security concerns during general elections in India.
Another former board member, Thandi Orleyn, said if Majola had disclosed the IPL bonus, he would not have been given his annual bonus from CSA coffers.
Popular radio presenter John Robbie appeared before the inquiry to explain how CSA had punished his station by withdrawing advertising worth almost a million rands because of his outspoken remarks over the bonus dispute.
As Majola prepared to appear before retired judge Chris Nicholson and his two colleagues tomorrow, commentators said his situation appeared increasing untenable as the latest revelations would result in further dissatisfaction from sponsors who have been shying away from CSA.
There have been a number of calls for Majola to step down, but he has remained silent throughout the controversy after being charged in an independent inquiry by auditors KPMG of having breached his fiduciary duties in terms of the Companies Act.