26/10/2023
It's been a while since I last posted and that's because I have been waiting on the skeletons to come walking out the BSA closets in Pretoria...and here they are. The tardy Annual Financial Statements from an organisation run by a supposed accountant acting as a CEO. After analyzing the information presented by these supposed champions of Renewal, Growth and Transformation I will now present you with a dumbed-down version. Part 2 is coming soon - Ahem...
Well, well, it seems that Boxing South Africa (BSA) is back at it again, breaking the bank and raising eyebrows with its financial antics. The Auditor-General (AG) has unearthed yet another chapter in the BSA irregular spending saga, and it's shaping up to be quite the blockbuster. So, grab your popcorn, because this is a story that keeps on giving.
In a thrilling turn of events, irregular spending at BSA has taken the stage, with more than R1.5 million mysteriously vanishing into thin air for the year ending March 31, 2023. It's like an ongoing drama series, with each episode more irregular than the last. Last year, it was R813,000, and the year before, R1.3 million – they're really outdoing themselves in creative accounting!
But hold on, because there's more. The AG's report reveals that investigations into this irregular expenditure were about as scarce as a heavyweight fighter on a diet. And when it comes to collecting the money BSA is owed, it seems they're about as effective as a chocolate teapot – revenue went uncollected.
Doubtful debts, you say? Oh, BSA's got that covered. A cool R6.28 million (down from R7.94 million, mind you) is believed to be owed by some forgetful promoters (all National Boxing Promoters Association aligned) who haven't quite gotten around to paying their sanctioning fees. It's all in a day's work for the financial wizards at BSA.
But wait, there's more! It's not just the spending that's irregular, but the internal controls as well. The accounting authority and senior management seem to have misplaced their oversight responsibilities, leaving financial reporting and compliance management to their own devices. Policies and procedures must be hiding under the boxing ring because they haven't been reviewed or aligned with laws and regulations. Oops!
BSA, which relies heavily on government funding, found itself in a classic tale of revenues not quite covering the expenses. With a deficit of R76,912, they might need to start selling ringside tickets to their board meetings to balance the books.
And now, the main event! BSA's fearless leaders, Chair Luthando Jack and Executive Member Erick Sithole, are heading to Parliament's sport committee. But before you grab your front-row seat, let's talk about their travel expenses. Local travel costs went from R1.23 million to a whopping R5.5 million, so someone has been taking SAA Business Class instead of SafAir. I can easily throwback to the time when the bespectacled stringbean flew to Cape Town to have me illegally removed from the ring while performing on a live televised show. I hope his Waterfront hotel was comfy because he must have been absolutely knackered after working a whole 5 minutes that night
When it comes to salaries, it seems BSA is as generous as a billionaire uncle. More than R10.38 million went to paychecks, with Mr. Sithole himself pocketing over R1.6 million. And let's not forget the emoluments, which sound more like a magic spell than executive compensation.
But wait, there's more! Board and sub-committee fees, consulting and professional fees, conferences, seminars, and even phone bills all joined the financial circus. It's a real extravaganza of spending.
Oh, and there's the case of former CEO Moffat Qithi, who somehow won his case despite having a criminal record. The Boxing Act may have something to say about that, but BSA's attempts to appeal and lodge further appeals didn't quite pan out, leaving us to wonder just how many zeroes that lawsuit cost.
In conclusion, BSA is the gift that keeps on giving, providing us with a never-ending saga of financial intrigue and questionable decisions. Whether it's irregular spending, sky-high travel costs, or legal battles, they certainly know how to keep us entertained. We'll eagerly await the next installment of this financial soap opera, popcorn in hand.
