No Misappropriated Funds from CSA – KPMG

Michelle Remo, “Big 4″ observer
September 20, 2011 /

There is no evidence supporting allegations that R68-million was misappropriated from the Cricket South Africa (CSA) account arising from the IPL tournament, KPMG’s independent audit of the finances of CSA revealed.

The audit report, received by CSA recently, covers the 2009 Indian Premier League (IPL) and the ICC Champions’ Trophy tournament, which were organized and hosted by CSA. The report altered the previous draft report and included additional findings which were presented to the Board of Directors during their meeting at Kempton Park on July 30, 2011.

The issue first came out June this year when South Africa’s sports minister Fikile Mbalula called for a meeting with top CSA officials, including its chief executive Gerald Majola, to shed light on the heated controversy over bonuses at CSA that have been allegedly awarded improperly to officials.

Majola, for example, allegedly received a total of US$271,428. In addition, Kass Naidoo, brand and communications manager, and Nassei Appiah, chief financial officer, allegedly received US$28,571 and US$42,857, respectively.

The newly released findings dissolved the allegations made by CSA President Dr Mtutuzeli Nyoka who claimed that R68-million went missing from CSA accounts.

During the course of the investigation, KPMG noted that the only transfer of money that could be possibly linked to the case involved R65,264,125 paid into the BCCI bank account.

“Therefore, we could not find any evidence to support the allegations that R68-million was misappropriated from the CSA account arising from the IPL tournament,” the report stated.

KPMG went on to say that CSA had no discretion in paying the vendors because all expenses “incurred on behalf of BCCI for the IPL tournament had to be approved by Kannan and approved for payment by Srinivasan before payment could be made by either Lewis or Britz.”

The accounting firm added that CSA did not record the expenses paid or money received from BCCI as part of CSA’s income and expenses.

But CSA president Mtutuzeli Nyoka, who took a second look at the KPMG forensic audit for two hours last week as he was not allowed to reproduce a copy nor bring it with him, found some findings to be “problematic” according to his legal counsel Bernard Matheson.

“Dr Mtutuzeli Nyoka, President of Cricket South Africa (CSA), visited the offices of CSA…to view the legal opinion of advocate Azhar Bham SC and to make relevant notes,” CSA confirmed.

Matheson said he found “inconsistencies” with the report, prompting his client to send a formal request asking to have another look at the documents again.

“After that we will then decide what step to take next,” he said.

 

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