BOXING SA ANNUAL REPORT 2008/09. Presentation to the Sport Portfolio Committee 17 November 2009. VISION To create a world class regulatory body for boxing in a united and safe environment MISSION
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Presentation to the Sport Portfolio Committee
17 November 2009
To create a world class regulatory body for boxing in a united and safe environment
To enhance the capacity of all stakeholders to improve the quality, passion, and popularity of professional boxing in South Africa and internationally
Boxing Commission which is a juristic person known as Boxing SA was established in terms of the South African Boxing Act, 11 of 2001
Duties and powers of BSA per Section 8 of the Act :
(ii) Hold meetings at its request, or requested by associations
(d) Consider applications for recognition of international boxing bodies, organizations, and their champions
The funds of BSA in terms of section 15 of the Act consists of:
MINISTER OF SPORT AND RECREATION SA
REV. DR MAKHENKESI STOFILE
DEPUTY MINISTER OF SPORT AN RECREATION HON. GERT OOSTHUIZEN
PA TO THE CEO
DIRECTOR: COMMUNICATION & MARKETING (VACANT)
BOXING TECHNICAL ASSISTANT
FINANCE & ADMIN OFFICER
ASSISTANT FINANCIAL OFFICER
ADMIN OFFICE ASSISTANT
GENERAL ADMINISTRATIVE ASSISTANT
Current staffing has changed as follows:
Retention Action Plan
Tournaments Action Plan
The SLA between BSA and Theta has resulted in the ongoing process BSA licensees are trained and accredited according to their respective disciplines.
We are now preparing for the first graduation before spreading the program nationwide.
As from January 2010 the National Lottery Fund will be utilised to conduct house training so as to develop licensees as follows:
Non-compliance with applicable legislation
Public Finance Management Act
“ A framework of acceptable levels of materiality and significance, which must be agreed between the accounting authority and the executive authority, could not be provided as required by Treasury Regulation 28.3.1.”
BSA is in the process of reviewing its policies, therefore the above matter will be addressed accordingly with the consultation of all stakeholders for advice.
Internal control deficiencies
There root cause: Control Activity.
Note 24 Going Concern
“In the current year the entity has incurred a net deficit of R4 327 497 (2008: R1 787 470) and the total liabilities exceed its total assets by
R5 951 045 (2008: R1 623 548). Boxing SA receives financial support in the form of a grant from Sports and Recreation South Africa. During the current year the entity’s operating expenses exceeded the grant received, which may indicate that the entity’s current business model is not sustainable on an ongoing basis. Additional funds will need to be secured in order for the entity to continue as a going concern.”
The last sentence in the AG’s going concern report attests to the fact that BSA needs more funds if it is to deliver on its mandate. In order to address this financial crisis more funds will have to be secured either from sponsorship or increased government grant.
It must, however, be noted that Sponsors are reluctant to assist BSA at this moment due to this accumulating deficit and media misconception.
It’s in the light of these aforesaid conditions that increased intervention by government is needed in order to sustain BSA.
18. Fruitless and Wasteful Expenditure
Suspended employee salary 425 991 512 432
Court settlement(dismissed employee) 400 000 -
CCMA settlement of unfair dismissal 28 937 -
Interest accrued on VAT liability 98 737 -
Interest & penalties on PAYE liability 359 226 -
1 313 226 512 432
Article dated October 2009 “ The Star article titled Boxing SA lifts executive’s salary 45% despite its insolvency”
“ Current board members received a combine R117 000 for their duties to Boxing SA. Former board chairman Dali Mpofu, who was paid R11 000 in 2008, received a further R6 700 in this past financial year, while current chairman Peter Ngatane was paid R21 000, up from the R10 000 he received in 2008.”
The BSA board members are non paid private persons who do the job of boxing activities on a voluntary basis. They are neither paid by SRSA nor BSA, but are however, paid emoluments based on the meetings they attend and the hours thereof.
There has been reports that while BSA has been in financial crisis board members went on to pay themselves emoluments amounting to R117 000.
With an exception of Adv Dali Mpofu who is no longer a member of BSA, the amounts mentioned have not been paid to the board members accrue from the period of time they have been engaged and are still them. This is due to the financial crisis and will be paid to them when BSA recovers.
BSA is set to consider the tax implications of this situation as the members may still be taxed according to law even though they have not yet received the money.
“.... chief executive Bongani Khumalo’s salary rose from R624 000 in 2008 to more than R1 ,million in the past financial year.”
Mr Khumalo was appointed on January 2007, but only commenced his duties in June 2007 due to ill health. This means for the first six months of his contract he did not work. The quoted amount of over a million is therefore the sum total of his annual salary, backpay, leave pay as well as his medical expenses which were recovered form his monthly salary.
With five months to go, BSA is in an all systems go state for 2009/10 Financial year audit, the current work force has a passion, determination and a drive to go where there is no path so that they leave the trail.
"Failure is simply the opportunity to begin again, this time more intelligently." -Henry Ford.
Thank you for your time Framework