Safa calls reports alleging corruption 'false' and 'malicious'

The South African Football Association (Safa) has called two stories in Daily Maverick this week alleging corruption and misappropriation of funds “false” and “malicious”.

One report alleged developments in the Hawks' investigation into Safa and its president Danny Jordaan regarding alleged improprieties surrounding the association's purchase of the Fun Valley pleasure resort in Johannesburg to be converted into a national technical centre.

Another report alleged Safa's auditor, PwC, resigned in 2019 and again in 2020 over fears the “risk” in dealing with Safa was too high, and alleged other financial irregularities.

Safa said it “has noted the articles written by the Daily Maverick ... and rejects them as false, malicious and damaging to our reputation”.

“The articles contained distorted information that cannot go unchallenged as once again, this is a recycling of the same old false information that has been peddled in the past,” the association said.

“The Fun Valley/Safa National Technical Centre matter was previously dealt with in detail and exhausted. The funding was approved by the 2010 Fifa World Cup board of trustees.

“The valuation of the property was also commissioned by the same board of trustees and the valuation report was submitted directly to the trustees before the property was purchased. The purchase of the property complied with the governance requirements of the Fifa/Safa Legacy Trust. A subcommittee of the trust considered the matter and a letter was written to Fifa to first raise the matter of funding.

“Safa approached the Legacy Trust for funding and were approved. The trust evaluated the property and approved the funding. The money was transferred into the ENS Trust account. The contracts were signed after the Safa NEC [national executive committee] approved the purchase after an inspection.

“We have the documents. ENS was the legal adviser and EY ensured financial compliance, and we are happy to share all these in the courts.

“With regards to PricewaterhouseCoopers, they perform regular risk assessments on all their clients and during the period they were unhappy with the negative media coverage Safa was getting. On that basis they decided to resign as Safa’s auditors.

“However, during the handover to our current auditors, as required by the auditing profession, PwC did not raise any issues regarding Safa’s financial records.

“As you are aware, we have opened a criminal case against Bart Henderson. We are going to present the documents in court that will prove that these allegations are false and mischievous.

“We have copies of signed contracts and minutes of decisions taken. It is for this reason and the distortions that the Safa NEC believes this matter should be dealt with in court. We hope that day comes sooner rather than later.”

Safa's statement also responded to several background issues raised in the Daily Maverick reports, which had been reported on extensively, regarding questions over the appointment of a reputation company and a security company to allegedly serve Jordaan using Safa funds, and an alleged $10m bribe paid as part of the 2010 World Cup bid.

Safa announced in a press conference on Friday that it had opened civil and criminal cases against forensic investigator Henderson, who apparently has authored a report alleging wrongdoing at Safa.

Safa's statement was in response to the two Daily Maverick stories.

The first, on July 9, alleges “Jordaan provided a warning statement to the Hawks in May” regarding the long-standing investigation into alleged improprieties in Safa's purchase of Fun Valley, including that the amount paid of R65m was double the property's evaluation.

A “warning statement” is an informal procedure police can offer to someone who is the subject of an investigation to provide a written statement arguing their position. 

The second story, on July 10, makes several allegations, including that PwC allegedly resigning twice as auditors over risk associated with working with Safa. 

Another allegation is that R14m of Safa funds were paid in a “questionable and possibly unlawful manner” to Jordaan.

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