EASTERN PROVINCE CRICKET BOARD'S RESPONSE TO TE REPORT COMPILED BY G. MAJOLA Of THE UNITED CRICKET BOARD OF SOUTH AFRICA (UCBSA) ON THE STATE OF CRICKET AFFAIRS IN THE PROVINCE
We» the remaining members of the Eastern Province Cricket Board (EPCB) strongly feel that the recent urgent application to the High Court (Grahams town) to place the Board under judicial management cannot be left unchallenged. This is not only a serious violation of the rights of a democratically elected body but also a sad indictment on the ability of UCBSA to engage its affiliate in a constructive debate in order to resolve, amicably, whatever problem(s) - real or perceived. We do not regard the half measures they have employed as a genuine attempt ant, rather, as bully-by tactics which we do no deserve.
We will attempt to address only those points that we regard as being critical in Majola's report in order to highlight the fallacies contained therein. His distortion of the truth» and the accompanying inaccuracies and inconsistencies can no longer be ignored. His unwarranted attack has not only portrayed EPCB in negative light but has also besmirched the integrity and the reputation of the remaining members,
First and foremost it should be noted that the EPCB structure that Majola has target was elected into office only in September 2001, of interest is that his allegations of financial mismanagement and in-fighting within EPCB go back as far as 2000(according to the documents contained in his urgent application for judicial management).
1.BACKGROUND
"We do not question that Majola was mandated by UCBSA to compile a confidential report on the state of affairs of EPCB. We, however, question his modus operandi.
It is important to not that the thirteen members of EPCB are volunteers who are not always in the same place at the same time. Because of this in carrying out their mandate they are supported by a management structure with a complement of full time employees. At the head of this unit is a full time Chief Executive Officer (David Emslie) who has occupied this position for over seven yearn.
- It is on record that Majola was a member of EPCB for n number of years until his resignation in December 2000 in order to take the (JCBSA CEO post. The two years of public wrangling that he refers to can best be articulated by him. He also all alludes that during this period "there have been independent findings of financial mismanagement, lack of transparency and inadequate corporate governance". He needs to provide us with specific details in this regard.
- The misdemeanours committed by R Moodley have not been exonerated by EPCB despite the fact that we were not officially informed by UCBSA about these matters. We only got to know about this from reports carried in the local from the outset?.
- We cannot endorse Majola's befuddled viewpoint about commission of enquiry into EP Cricket affairs called for by Moodaley and J Majola and the alleged campaign to discredit R Pillay and D Emslie as he fails to provide evidence in support of the latter aspect. Also the vote of no confidence in Pallay and other Board members is an issue that was not the making of this Board but was generated by a body of local clubs.
- On the question of the RGA report the non implementation of their good recommendations can best be answered by the former President (Pillay) as he failed to demonstrate sufficient will to take this matter forward. The Board, however, approved payment of the RGA accent and Emslie continued that this was done early this year. It b, therefore, irresponsible for Majola to claim that "Mr Steyn's proposals were ignored by all concerned.
- It is indisputable that the meeting or. 7 April 2002 between UCBSA and EPCB was a one-sided affair as the latter were afforded an opportunity to debate the issues that were on the table. EPCB was, instead, slapped with decree containing very tight deadlines to complete certain tasks. It is a well known fact(to UCBSA) that during this period EPCB had a President who was suffering from an acute lack of confidence and consequently has ability to lead EPCB diminished. This may very' well have contributed to his self-unposed suspension on 27 March 2002. At the same time the Deputy President was indisposed due to serious illness.
- We certainly do not comprehend the UCBSA preoccupation with the implementation of corporate governance principles as we are on record as having tried very hard to achieve this. All those efforts were frustrated by Emslie's continuity defiance of EPCB EXCO as he was non openly reporting to Majola.
- It is on record that a number of EPCB EXCO members in conjunction with community leaders made bold attempts to address the issue of the "vote of no confidence" passed on the former President and other EXCO members until it was lifted on 27 May 2002. while we acknowledge that our Board is not homogeneous in terms of linking manner of doing things, we believe that this is not peculiar to EPCB, as this characterises al organisations, UCBSA included.
- We certainly do not comprehend Majola's irritation about the EPCB meeting that he was "mandated" for that day did not Indicate this. We were faced with more pressing infernal issues that needed to be resolved through the intervention of other people. That is why the EXCO meeting was cancelled. This meeting took place on 5 June 2002.
- We cannot comment on the alleged telephone call made by J. Majola to the General Secretary of the ANC as he was not mandated by EPCB EXCO to do this.
The special by the forensic auditors into the financial inside measurement Moodaley was in by the forensic auditors into the financial inside early in April 2002 and was conducted in collision with UCBSA's B Basson. EPCB EXCO was never informed about this and only learnt about it at the 5 June 2002 Board meeting. So much for corporate governance and transparency
- If there has been any misdemeanour with regards to the security contract for 2003 World Cup, EPCB EXCO will fully support an investigation of this matter as our view is that this matter was concluded in a transparent manner. We cannot comment on rumours raised by the auditors. We need facts to do this.
- When we realised that we had a chaotic situation with no management that we could rely on we found ourselves have to spend more time than anticipated attending to EPCP business. We also noted that Emslie who had been the EPCB CEO had been allowed by previous Boards to just carry on as he saw fit. When we started to ask questions Emslie bc-came defensive and arrogant. And it dawned on us that he knew no other way of doing things other than his methods. This to us was a serious violation was a serious violation of corporate governance principles. In consequence some Board members spent quite a significant portion of their time in trying to make sense of what was actually going on.
- When this idea of some form of disbursement was raised Emslie was mandated to do a survey of other UCBSA affiliates and he reported that this was common practice and we need not be ashamed. It was decided that the President, his Deputy and Treasurer could receive R1000.00 and other members R750.00 per month. This was not done at the expense of staff as the increases were to be approved after the finalisation of the 2002 - 2003 budget. Increases were to be deducted on 1May 2002. the devious and manipulative Emslie went ahead to incorrectly inform the staff that EXCO had decided not to give the annual increase. Majola without verifying this goes on to vilify- EPCB EXCO which is dear cadence of collusion between him and Emslie.
2. SUMMARY
It is disappointing that Majola can be so vain in trying to make out a situation that does not exist. His claim that "all the efforts to bring unity and proper corporate governance to Eastern Province Cricket" remains unsubstantiated. If this is true, should have been proceeded by a serious of meetings and discussions between EPCB EXCO and UCBSA.
- The question remedial measures proposed by G. Steyn was addressed earlier in this report under the RGA matter.
- The ability of EPCB EXCO to comply with the timeframes of the UCBSA decree was seriously compromised by the former President's unavailability to lead EPCB. When we raised the status of the UCBSA decree at the 5 June 2002 Board meeting, Emslie informed us that he had been in touch with Majola about this matter and the latter had conceded to the unreasonableness of the deadlines. Emslie created the impression that there was no need to panic as the situation was under control.
- The marginalisation of Emslie "to the extent that he is no longer part of EXCO" amounts to gross misrepresentation of the truth. We challenge Majola to provide evidence in support of his claim.
- The signing of cheques is a control measure that became necessary when the Treasurer disconcerted that the bulk of the cheques generated were below R20000.00 limit. He decided to extend his authority in the interests of good corporate governance especially that EPCB finances were not very sound. This was strongly resisted by Ernslie despite the fact that it was approved by EXCO. How did Majola know about this we did not inform and he never raised this with EXCO. How is Emslie "kept in the dark about executive decisions" when be has attended all but one EXCO meeting and he is responsible for the compilation of the minutes?.
- The EXCO meeting of 27 May 2002 was cancelled in order to address urgent and pressing EXCO members bad fried to negotiate wit the people who initiated this measure and when they did not succeed the intervention of reputable community leaders was sought. Obviously Majola finds fault with this? Ernslie office was notified timorously about this matter.
- We will again nut comment on the alleged telephone call made by J. Majola to the ANC General Secretary as this was not an EXCO decision
- The forensic conducted by Price Waterhouse Coopers was not commissioned by Emslie and B. Basson (UCBSA) without the knowledge and approval EPCB EXCO. On stance on the indiscretion committed by any member of EXCO has been addressed already.
- We support the investigation of any alleged wrong - doing with regards to the contract for security for the 2003 World Cup.
Majola's alarmist tactics are refuted as the resignation of staff members is a normal occurrence. However, the resignation of thee President before the launch of his hostile takeover of EPCB, and that of other Board members was a well orchestrated act. It is no coincidence that almost all of those who resigned were hid close friends when he was a member of EPCB. This, we believe was all done in order to create a leadership crisis in EPCB. We challenge Majola to prove us wrong on this.
- In the normal scheme of things players and waches will always be looking, for greener pastures. Since no one is indispensable why should Burrell's resignation for greener pastures be regarded as a crisis? Of the players who considered leaving Eastern Province why has no one left.
Furthermore why have those who have not been contracted by Eastern Province not been signed by other Provinces?. In the current climate of transaction we believe that rationalisation signed by other provinces? In the current climate of transaction we believe that rationalisation of our playing staff is part of normal business. Is this not what UCBSA also does? Why is G. Ford, JL Smith, J. Kemp and other not on their books for the coming season? What is good for the goose should, surely, be good for the gander.
- Majola’s question as to what ail this does for the public, the sponsors, the organisers of the World Cup 2003, is nothing shock of emotional blackmail. For once he is correct that Eastern Province combines a rich heritage of Cricket with a potentially successful development programme. Of interest did he ever consider that the huge amount of money spent on the preparation and urgent application for EPCB to be placed under judicial management is money that he and UCBSA could have invested in the expansion of the development programme? The answer is no. only because he and UCBSA were so preoccupied to poop up their flagging super egos. The money spent on this needless exercise cannot, unfortunately) not be recouped.
- It is on record that UCBSA General Council has been watching the EPCB operations with a "fine microscope" ascending to our former President. Of interest to as is it because we were the first predominantly black EXCO with UCBSA and we, therefore, needed to be put in our place.
RECOMMENDATIONS
We challenge Majola to indicate as to how and when he went about compiling an interview investigation an the on the affairs of the EPCB.
- Majola's recommendation is nothing but a fait accompli as we have it on n reliable source that the UCBSA President had long before 7 April 2002 advocated the implementation of a judicial management structure. This was UCBSA's response to the EPCB plan to retrench Ernslie for serious incapacity.
- We welcome the extension of the special Investigation by Prewaterhouse Cooper forensic Unit "into other allegations of misappropriation of funds. We suggest that this should also cover Emslie and his staff.
- The issue pertaining to the misdemeanours of the former Chairperson of the Provincial Transportation Maintaining Committee is beyond us as we were never informed or unsolved us this matter. We got to know about it with the press. So much for good corporate governance on the part of Emslie and UCBSA.
- We are not supportive of the disbandment of EPCB without being given an opportunity to engage UCBSA on their allegations.
- This recommendation is a contradiction of Majola's judicial management and Eastern Board structures .. to remain in place until the end of the 2003 World Cup. We challenge Majola to explain what he means when he claims that the interim Board will sit until the AGM.
- We found it strange that themen who is directly responsible for EPCB's financial woes - K Heln should now be the judicial manage. He was Treasurer from early 1990's until his resignation in 2000. How is possible that a "player" can end up being the "referee"? Is this not a serious violation of the principle of honesty?
- The instruction to Pricewaterhouse Cooper's install corporate governance principle for EPCB details with our plans.
- Majola's phobia that the situation in the Eastern Province Cricket is not normal is nothing but a figment of his imagination which is shared by his cohorts locally and the editor of the herald.
CONCLUSION
It is absolutely unbelievable that Majola could voice such strong measures on the bases of one-sided and distorted information. We are left with no option but to conclude that this is symptomic of these who live in ivory towers.
We challenge Majola and UCBSA to give us tangible evidence that the World Cup Programme especially the semi-final was under threat. If we had a hidden agenda would St George's Park be a.. activity in terms of the upgrading work currently taking place. Emslie is on record as have amanced at a press briefing on 13 June 2G02 that the building programme is well on track and the anticipated completion date will be met.
We strongly believe that the unsubstantiated allegations made by Majola are nothing hot a smokescreen. We are concerned that there is an ulterior motive behind the installation of the judicial management takeover. We have it on good authority that behind all this lies a business deal that will generate some money for EPCB. Is it the return of a similar initiative to the SAC'S takeover of two years ago? This needed to be clinched with at the prospect of current EPCB asking
questions which would stall the implementation of the deal.
We wish to express our serious disappointment in Majola's actions that have ensure that the input and participation of the Black community in EPCB affairs is mollified in order to serve the interests of white business people. The gain made during 2001 - 2002 season will, in essence, set back the transformation agenda by many years. The white face of former EPCB EXCO has been restored if one looks at the construction of the judicial management structure and the interim Board.
We note with concern the contradiction between the statements made by Majola and Bacher as to why Port Elizabeth was granted a World Cup semi-final match. Majola alludes this decision to lustancal reasons while Bacher informs us that it was due to Emslie "spooky from his heart and with passion" we cannot stand idle and watch Bacher insult our intelligence. We all know that this was a miserable attempt by Bacher to glorify Ernslic to the Port Elizabeth Public. This will not make us forget the man S acute incapacity as the CEO of EPCB.
We wish to re.. that a commission of enquiry be establish to investigate in-depth the affairs of EPCB and the findings to be made public. Such a commission should be constructed by:
- A chartered accountant with forensic audit experience
- A lawyer or advocate of repute
This issue of the commission of enquiry will also be pursued with the ministry of
Sport (national attd provincial), the Nelson Mandela Metro pole Municipality,
Community' Leaders and Community based organisations.
Memo
To; Mr. Gerald Majola - United Cricket Board of South Africa
From: Wallace Moyake
Dato: 11 August 2004
Subject: Postponement of League for 2004/2005 Season!!
Dear Gerald
I would be serving no justice to the clubs whom I am leading if I would have to let them suffer this way for the upcoming season regarding our financial status.
We as the Nelson Mandela Cricket Board (NMBCB) formally known as the Port Elizabeth Cricket Board had been allocated R31 000-00 by Eastern Province Amateur Cricket Board as compared to the R290 000-00 which was allocated to us last season.
This has made me as the President to declare season to be suspended, until we acquire a clear explanation into what has occurred to the dwindle of our allocation of funds. I would also like to request you as an organization which financial supports cricket to intervene In this matter as soon as possible.
I have acted on the matter as a very concerned President who would like to see this game going into high heights.
Regards
WALLACE MOYAKE
PRESIDENT
NELSON MANDEUV BAY CRICKET BOARD