Cricket South Africa president, Chris Nenzani, expressed confidence in the organization’s financial health following a Special Board of Directors meeting held in Johannesburg yesterday.
This follows the postponement of the T20 Global League in October.
The Board considered various reports around the postponement of the T20GL.
“A complete reconciliation of the total expenditure incurred on the T20GL has been concluded and we can now confirm that all monies have been adequately accounted for and that we have found no irregularities or financial mismanagement,” commented Nenzani.
“These reconciliations will now be examined by our external auditors, Nkonki, as part of their normal audit procedures.”
Nenzani was adamant that the Board stands by its decision to postpone the T20GL. “Having gone through all the reports, we are convinced that we made the right decision to postpone the T20GL as we were unable to secure the required revenue streams on time and felt that given the uncertainty, continuing with the league in 2017 would pose significant financial risks to CSA.”
“As a 100% subsidiary of CSA, the Board of Cricket South Africa accepts responsibility for losses incurred and the general disappointment of the tournament being postponed.”
The Board also noted that the investigations highlighted pervasive governance lapses around the T20GL.
“Many learnings have emanated from the findings of the internal investigation,” said Nenzani.
“The CSA control environment is what stood us in good stead to date and the same standards should be applied even when we decide to embark on a ringfenced initiative as the T20GL. We will fix these aspects with a great sense of urgency.”
Regarding CSA’s current financial state, despite the losses sustained by the T20GL, CSA remains a going concern. In addition, the cash reserves accumulated over the years because of CSA’s tight fiscal management and policies, leaves the organization liquid and solvent.
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The issue around the settlement of former Chief Executive, Haroon Lorgat, was also discussed. This remains an ongoing matter with discussions between the two parties continuing.
The Board has also tasked management to look at the various T20 League financial models around the world and to present a viable financial model for the T20GL before a final decision on the future of the T20GL can be taken.