Letter from the Minister of Sport and Recreation dated 28 October 2005 to the Speaker of the National Assembly, in terms of section 65(2)(a) of the Public Finance Management Act, 1999 (Act No 1 of 1999), explaining the delay in the tabling of the Annual Report of Boxing South Africa for 2004-2005:

According to section 55(1)(d) of the PFMA, the accounting authority of Boxing SA had to submit their Annual Report to the Executive authority by the end of August 2005, for tabling in the National Assembly by 30 September 2005.

Boxing South Africa did not comply with section 55(1)(d) of the PFMA and was asked to provide a written explanation in this regard.

The following reasons for the late submission of the Annual Report were provided by Boxing South Africa preventing the Executive Authority to comply with section 65(1)(a) of the PFMA:

The Auditor-General completed the annual audit of Boxing South Africa and advised BSA on 27 July 2005 that the Annual Financial Statement would be disclaimed due to inter alia, the lack of an audit trail in the finances concerning tournaments, unsatisfactory reconciliation of the licence fees and asset register.

The Board of Boxing SA resolved to withdraw the Financial Statements, rectify them and then resubmit to the Auditor General. The indulgence of the Minister was duly sought in terms of the Boxing Act.

The Board’s rationale was that the Financial Statements were disclaimed in the previous year and to accept a second disclaimer would send a signal that the finances of Boxing SA was in disarray, which is not the true situation.

Kind regards