“This ... shows the poor grasp of the audit process by the ... sources. The acting CEO started in the position in January 2022 and to suggest he could spend about R1m in travel expenditure is ridiculous.
“The figure of R1m refers to travel expenditure for the past financial year, 2020-21,” the regulator said, adding it comprised flights, accommodation and care hire by board members as well as by promoters and staff attending tournaments and venue hire.
“The board has fixed the monthly travel expenditure of the CEO and that of the COO and at no stage did they exceed the set limits.
“Given the busy schedule of the organisation the budget committee of the board has proposed to increase the travelling and accommodation budget to R2.5m per annum in order to enable the board to achieve its goal of turning around the organisation.”
The last completed annual report shows local travel came to R665,552 for the year ending March 31 2021 and R1.144m for the previous 12 months.
Total revenue was listed at nearly R21.5m with R18m of that coming from government grants. With expenditure totalling a little more than R17m, BSA posted a surplus of R4.23m.
The auditor-general, commenting on BSA’s compliance with legislation, highlighted some concerns, including that appropriate steps had not been taken to prevent irregular expenditure of just more than R5m, nor to collect all revenue.
The liability of BSA’s debtors was listed at R7.8m.
Boxing
Boxing SA defend acting CEO amid swirling allegations
Image: Alex Davidson/Getty Images
Boxing SA (BSA) has confirmed that acting CEO Erick Sithole involved some staff members from his private company to work at the Women In Boxing indaba in Durban this past week, but insisted there was no financial gain.
BSA was engulfed in a firestorm of rumours and accusations this week, several being sparked by its symposium that caused anger among licensees from outside KwaZulu-Natal for being excluded.
A photograph posted on social media showed two employees of Sithole’s Nsikayezwe Management Consultants company participating during the week’s events.
“It is correct that staff from the acting CEO’s company are assisting BSA in the recording of events, but the staff members remain employees of the acting CEO’s company and are paid by him from his salary,” BSA said in a statement responding to a list of wide-ranging questions sent by TimesLIVE.
Insiders within the organisation who asked not to be named accused Sithole, a BSA board member who had taken up the acting post at the beginning of the year, of spending only a few days a month at the Pretoria office and micromanaging employees to the point that they were being sidelined from their roles.
They also alleged he had run up a bill exceeding R1m on travel and hotels during his tenure, but BSA dismissed that out of hand.
Bongco secures SA's first Games boxing medal in eight years
“This ... shows the poor grasp of the audit process by the ... sources. The acting CEO started in the position in January 2022 and to suggest he could spend about R1m in travel expenditure is ridiculous.
“The figure of R1m refers to travel expenditure for the past financial year, 2020-21,” the regulator said, adding it comprised flights, accommodation and care hire by board members as well as by promoters and staff attending tournaments and venue hire.
“The board has fixed the monthly travel expenditure of the CEO and that of the COO and at no stage did they exceed the set limits.
“Given the busy schedule of the organisation the budget committee of the board has proposed to increase the travelling and accommodation budget to R2.5m per annum in order to enable the board to achieve its goal of turning around the organisation.”
The last completed annual report shows local travel came to R665,552 for the year ending March 31 2021 and R1.144m for the previous 12 months.
Total revenue was listed at nearly R21.5m with R18m of that coming from government grants. With expenditure totalling a little more than R17m, BSA posted a surplus of R4.23m.
The auditor-general, commenting on BSA’s compliance with legislation, highlighted some concerns, including that appropriate steps had not been taken to prevent irregular expenditure of just more than R5m, nor to collect all revenue.
The liability of BSA’s debtors was listed at R7.8m.
Trainer 'assaults' boxer in the ring: Boxing SA to investigate attack
BSA confirmed that “a number of promoters” owed money.
“The debts are historical in nature and the board has taken several resolutions to address these. Currently the board has resolved to subject all debtors to a legal process but the promoters made certain representations to the board which are still being processed,” BSA said, adding that no promoters received preferential treatment.
Sources told TimesLIVE staff morale was low, but BSA said the problem had predated Sithole’s appointment and had been raised by his predecessor.
Eyebrows were raised when Zandile Kabini resigned as chair from BSA’s Women in Boxing committee this week, but the regulator insisted it had nothing to do with the event. “Ms Kabini informed the chairperson [Luthando Jack] of her intention to resign from the BSA board more than six months ago and long before the current event in Durban.”
While critics may accuse BSA of presenting its case with rose-tinted glasses, the regulator believes it is turning the struggling sport around. “BSA and its board remain committed to clean governance and administration and to the much-needed renewal, growth and transformation of the sport of boxing.”
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
READ MORE
DAVID ISAACSON | The heavyweight division is alive and well if you Usyk me
Usyk targets Fury after beating Joshua on split decision
DAVID ISAACSON | Lerena steps up a division, but does he have the taste for it?
Wladimir Klitschko praises sports bodies for sanctions against Russia and Belarus
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos