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Sat May 26 08:30:49 SAST 2012

Spotlight on Gerald Majola's pay

SCHALK MOUTON and PERTUNIA RATSATSI | 24 November, 2011 23:56
Cricket SA's CEO, Gerald Majola. File photo.
Image by: SYDNEY SESHIBEDI

Gerald Majola had an annual travel allowance of R1-million - an amount described yesterday as "ridiculous" by a key witness in the cricket bonus inquiry.

Judge Chris Nicholson is heading the investigation into unauthorised bonuses allegedly paid to Majola, Cricket SA CEO; Don McIntosh, its former chief operating officer, and other members of staff.

Yesterday, when the amount of Majola's travel allowance was revealed, businessman Paul Harris said: "[It] can only be described as ridiculous and would never have been approved by [the remuneration committee]."

Harris headed the committee. He has since been dropped from the board.

Sports Minister Fikile Mbalula initiated the inquiry to examine how money from the Indian Premier League in 2009 - said to run into millions - was spent on bonuses for Cricket SA managers.

But Harris said that such unauthorised payments could have been made even earlier when the Twenty20 World Cup was staged in South Africa.

"I suppose it all started at the 2007 tournament where there were unauthorised payments, and we did take it into consideration," he said.

"[Steve] Elworthy [the 2007 tournament director] got a bonus. The money was meant to come to CSA and then be dispersed. I believe that it created a precedent of non-disclosure of payments."

Harris said that while the remuneration committee recommended capping bonuses for staff members at three times their monthly salaries, and that bonuses for the CEO and chief operating officer be kept at a maximum of 25% of their previous year's salary, Majola got a bonus of R1.131-million - eight times his R155000 wage. McIntosh received a bonus of six times his monthly salary.

Harris blew the whistle on the unauthorised bonuses.

Cricket SA was paid a "hosting fee" of $3-million. While the Board of Control for Cricket in India, which owns the IPL, had paid Cricket SA R3.8-million for staff bonuses, only R2.7-million was paid out in bonuses, the hearing heard.

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