Home Scandals Thabang moroe Spend R2 Million on Booze CSA Credit Card-Fundudzi Forensic Audit...

Thabang moroe Spend R2 Million on Booze CSA Credit Card-Fundudzi Forensic Audit Report

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Former CEO Thabang Moroe is at the centre of the findings, with allegations of corrupt practices, booze buys and failure to follow company processes at the heart.

Cricket SA has released the Fundudzi report summary findings compiled by their attorneys Bowmans.

Former CEO Thabang Moroe is at the centre of the findings, with allegations of corrupt practices, booze buys and failure to follow company processes at the heart.

Members’ Council representative John Mogodi presented the findings, and says he gave in to releasing the summary after media, stakeholder, sponsor and sports minister pressure.

 

Cricket South Africa (CSA) on Monday revealed corruption allegations against former CEO Thabang Moroe , his failure to follow appointment processes as well as the much-publicised media accreditation revocation and credit card expenditure at the heart of the Fundudzi Forensic Services audit report.

Following pressure from media, sponsors and stakeholders, including Sports Minister Nathi Mthethwa, Members’ Council representative and non-independent board director John Mogodi read out the Fundudzi Report summary findings compiled by CSA’s attorneys Bowmans.

CSA had previously kept the Fundudzi Report private but decided to reveal the summary “in the interest of cricket and to mend relationships”.

“Following requests from the Ministry of Sports, Art and Culture, South African Sports Confederation and Olympic Committee (SASCOC), members of the media, and concerns from sponsors and employees about the contents of the Fundudzi Forensic Report, CSA has, with legal counsel, decided to make a summary forensic report available to all stakeholders, including cricket-loving members of the public, via the media and other distribution channels,” Mogodi read from CSA’s statement.

“The full forensic report was made available to the CSA Members’ Council for inspection, subject to certain conditions related to confidentiality, including the execution of non-disclosure agreements, in line with the protection of the organisation.

“In the interest of cricket and to mend relationships, CSA’s Members Council, unanimously agreed to make the summary Forensic Report available to all stakeholders, including the Board of CSA and its executives, and thereafter to all interested stakeholders including members of the media.

“Importantly, the summary of all findings and recommendations (“Summary Forensic Report”) is a direct extract from the Fundudzi Report and has not been amended by CSA’s lawyers, save for the matters detailed below. ”

Fundudzi was appointed in the ensuing aftermath following Moroe’s suspension in December to investigate CSA’s executive and board activities in the period dating back from 2016 to 2019, with 20 findings were handed to the board on 31 July this year.
Moroe was fired a month later.

Some of the most damning findings were that Moroe allegedly:
As a result, Fundudzi recommended that CSA consider:
CSA said “Service Provider X” could not be named as there were potential legal recriminations and processes that could follow, on the legal advice of Bowmans.

The deal Moroe engineered between CSA and Global Sports Commerce (GSC), who were granted all commercial and broadcast rights to the Mzansi Super League (MSL), also came under huge scrutiny by Fundudzi’s auditors.

Fundudzi found, in the GRC deal that was extended to 2023 in August last year, that Moroe allegedly:

The Fundudzi Report also delved into the company credit card usage at the organisation, and held the former CEO responsible for failing to hold a tighter leash on its expenditure. They found that R201 372.80 and R64 830.50 were spent by former Chief Operating Officer Naasei Appiah and Moroe on alcohol alone.

“In some instances, CSA employees did not complete a reconciliation forms or the reconciliation forms were not signed by the Head of Department. Some of the transactions did not have supporting documents ,” said the summary report.

“[CSA must] Institute disciplinary action against Moroe for failing to ensure that CSA has an approved Credit Card Policy, which resulted in the inappropriate use of CSA’s funds.”
Fundudzi also recommended that, in future, CSA should:
The report also found that Moroe was culpable in the media accreditation revocation debacle in December during the MSL, where five members of the media were denied access to matches because of their reporting, which was seen as a damning breach of the constitutional freedom of speech.

Moroe was pinged as well as in the failure to ensure the South African Cricketers’ Association (SACA) was paid timeously.
Moroe was also held responsible for the step-in rights actions against North West Cricket (NWC) as well as the Western Province Cricket Association (WPCA) that were mired in controversy.

In the WPCA debacle, it was alleged that Moroe “withheld information relating to the signing of the lease agreement as well as the withdrawal of the suspension letter by Stefanutti Stocks” and caused CSA “to incur costs of R565 000 relating to the arbitration matter, which costs could have been avoided had he exercised due care, skill and diligence as expected of a director”.
It’s alleged that Moroe “failed to ensure that the NWC kept and provided audited financial statements for the period of two years 2016/17 and 2017/18”.

Furthermore, the report also said Moroe failed to follow proper processes when appointing Chantal Moon as Human Resource manager.

Fundudzi said Moroe ought to have been disciplined for allegedly “failing to ensure that procurement processes were followed in the appointment of (security company) NSA Vulindlela”.

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Cricket SA has released the Fundudzi report summary findings compiled by their attorneys Bowmans.

Former CEO Thabang Moroe is at the centre of the findings, with allegations of corrupt practices, booze buys and failure to follow company processes at the heart.

Members’ Council representative John Mogodi presented the findings, and says he gave in to releasing the summary after media, stakeholder, sponsor and sports minister pressure.
Failed to follow procurement processes in the appointment of ‘Service Provider X’; and
Failed to act in the best interest of CSA in terms of Section 76(3)(b) of the Companies in that he caused CSA to pay ‘Service Provider X’ R3 019 244.82 without following Procurement Policies and Procedures.

 

Registering a criminal case in terms of Section 34 of the Prevention and Combating of Corrupt Activities Act 12 of 2004.
Obtain legal advice regarding the desirability to institute legal action to recover funds paid to ‘Service Provider X’ in view of no evidence of delivery of services.

Failed to act in good faith and for a proper purpose in terms of Section 76(3)(a) of the Companies Act in that he did not inform FinCom [Finance Committee] and the Board that the due diligence on GSC was not conducted.

Failed to act in the best interest of CSA in terms of Section 76(3)(b) of the Companies Act by not ensuring that the due diligence was conducted, and the Bank Guarantee was obtained; and
Failed to act with the degree of care, skill and diligence that may be reasonably expected of a person carrying out the same function in relation to the company in terms of Section 76(3)(c) of the Companies Act.

 

He failed to ensure the FinCom and Board’s instructions were complied with in relation to the provision of due diligence report.
He failed to ensure the FinCom and Board take decisions based on properly presented and complete information.

He failed to ensure that CSA does not suffer losses or potential losses flowing from GSC’s failure to fulfil its obligations in instances where their bank guarantee was not obtained.
Approve a detailed Credit Card Policy.
Provide guidelines relating to expenditure on alcohol in terms of the approved Credit Card Policy.

Provide guidelines relating to the use of credit cards for travelling expenses in terms of the approved Credit Card Policy.
Limit the allocation of credit cards to the CEO and CFO.
Centralise procurement of goods and services as provided for in the SCM [Supply Chain Management] policy.

Keep a register of all clothing items distributed to CSA staff and stakeholders to ensure that the items are distributed to the correct recipients.