McKenzie orders probe, discloses boxers’ benevolent fund missing millions

Sport, arts and culture minister Gayton McKenzie on Thursday ordered an investigation into financial shenanigans at Boxing South Africa (BSA) as he disclosed the benevolent fund meant to help stricken fighters had been denuded of millions of rand.

He was speaking at the national convention in East London aimed at returning the professional fistic sport to its glory days.

“To my horror I have found that fund is gone — millions in that fund are gone,” he told delegates.

The fund was set up more than 40 years ago, initially to assist former fighters who had fallen on hard times. Since then a small percentage of every local boxer’s purse has been automatically deducted by BSA each time they fought. Now it is used to help injured fighters. 

According to BSA annual reports, the benevolent fund — which has been overseen by the regulator — stood at R11.6m in 2022. It was listed at R6.25m in 2023.

The minister and newly appointed BSA chair Ayanda Khumalo spoke about the dire state of the regulator which registered a R10m deficit in the year ending in March 2024, in a report qualified by the auditor-general, who highlighted irregular expenditure and bloated employee costs.

McKenzie said he wanted a “full investigation” by the board into the financial problems at BSA.

“We at the department will pay the cost for that investigation. They must go to jail so the investigations must happen immediately,” he said.

The minister also hammered promoters who exploited fighters by paying them as little as R1,000 per round.

“How do you exploit somebody and then you stand on stage and say you are being exploited? But [the exploitation] started with you. Some of what you are doing to the boxers is criminal. You should not be in boxing, you should be in gangsterism.”

McKenzie said he wanted the board to set up provincial boards instead of the current system where one representative runs an entire region single-handedly with minimal oversight.

The minister promised to show his commitment to boxing when he announces his budget in the next month or so. “It’s only then that you will see how serious we are about boxing.”

He promised to take quick action, such as ensuring the Orient Theatre in East London, once a major venue for boxing, would be fixed. He also promisedto give shirts and trousers to referees.

McKenzie said he wanted former top boxers to assist in trying to find amateur talent who could try to qualify for the Los Angeles Games in 2028. His “Project 350" is aimed at getting 300 athletes to the Olympics and 50 to the Paralympics.

“Boxing plays an inherent part of that.”