portfolio committee sport, arts & culture · -solidarity cup-cricket support fund-increase...
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PORTFOLIO COMMITTEESPORT, ARTS & CULTURE
19 JUNE 2020
ANNUAL PERFORMANCE PLAN 2020/2021
SHORT TERM TACTICS
• 6 months short term tactics – December 2019 – May 2020
• 3 months short term tactics – June – August 2020
• Strategic Plan – 2021 – 2024
6 Months: Dec 2019 – May 2020
o CSA Recovery plan
o Business Audit
o Stakeholder Management
o Crisis Management
o Building Commercial Capacity
o COVID 19 Strategy
3 Months: June – August 2020
o COVID 19 Strategy
oOperational plan
oGovernance plan
o Commercial strategy
Strategic Plan 2021 - 2024
o After Annual General Meeting
o Resolving of CEO issue
Tactic Strategy
Competitive Proteas - Review Pipeline- Competitive Intelligence Review
Financial Sustainability
Operational Effectiveness
- Tracking dashboards- Lead links- Kaizen meetings- Training
Professionalism & diligence
COVID19 StrategySafety
Using our voice
Engage with stakeholders
Mitigating financial impacts
- Protocols for Return to train, work, play
- Solidarity Cup- Cricket support fund
- Increase engagement - New Media engagement protocol
- Decrease Affiliate funding- Review Budget July / August
- Develop new Format- Continue after crisis
- Continue after crisis
Short Term Tactics: June – September 2020
Tactics June - September 2020 (continued…)Tactic Strategy
Commercial capacity - Campbell Jamieson- Commercial Strategy- Training- Benchmarking
Project responsiveness- Tracking dashboards- Training- Competitive intelligence review
Professionalism & diligence
Game Changers
- 3Team Cricket- Street Cricket- Commercialisation of professional cricket- Selling our own TV rights- Pro40- T10 SABC Product- CSA Channel
Sustainability strategy
PROTEA MANAGEMENT 2019 VS 2020
PROTEA MANAGEMENT 2019 VS 2020 (continued…)
FINANCIAL STATEMENTS ENDINGAPRIL 2019
STATEMENT OF FINANCIAL PERFORMANCE (Income Statement) & STATEMENT OF FINANCIAL POSITION (Balance Sheet)
INDEPENDENT FORENSIC AUDIT
Backgroundo Fundudzi Forensic Services is appointed on 6 March 2020
o Investigation is to determine whether:
§ Management and Board of Directors adhered to Governance framework
§ Effectiveness of internal controls and other irregularities
§ Key sub-committees processes – Board approvals
§ Completeness and adherence to key Policies
§ Completeness and correctness of management reports over 12 months
§ Whether CSA’s funds were used for intended purposes; and
§ Whether decisions were made in the interest of CSA
Completeness and adherence to key Policieso Delegation of Authority
o Declaration of Conflict of Interest
o Procurement Policy
o Enterprise Risk Management Policy
o Employee Expense Claims
o Fraud Prevention Policy
o Cell Phone Policy
Sequel of eventso 16 March 2020: review of management and governance practices within CSA commences
o 23 March 2020: the President announces a National Lockdown, effective 26 March – 26 April ‘20.
The lockdown was extended until 1 May 2020.
o 24 March 2020: Inception Report is submitted which included work done from 16 – 24 March ’20
o Due to the Nationwide Lockdown, the team was not able to commence with the analysis of
imaged data. Imaged data was analysed after 1 May 2020 and the said process is ongoing.
o 1 June 2020: Draft report issued on investigations related to Thabang Moroe.
o 30 June 2020: Target date for issuing of draft report for comments
Work conductedo Prior to the Nationwide Lockdown, documentation provided by CSA for the purpose of the
investigation, was obtained and scanned on “SharePoint” to enable the team members to access
and review during the Nationwide Lockdown
Documents reviewed to date • Bank statements for period 2015 to 2019
• Draft Credit Card Policy
• Procurement Policy dated 21 January 2012
• Annexure A – Proposed Revision of the Deviation Clause
• Disciplinary hearing outcome report for Naasei Appiah
• CSA Code of conduct
• Credit card summary reconciliation form
• List of CSA officials issued with credit cards
• Contracts relating to top 40 key contracts
• Internal and External audit reports*
• Institute of Directors South Africa, King IV Report on Corporate
Governance for South Africa 2016
• Internal Audit Reports for the period 2016 to 2019
• External Audit Reports for the period 2016 to 2019
• Minutes of various committee meetings
• Internal Audit Risk plan 2016/2017
• VAT returns
• Loan agreement between CSA, Western Province Cricket
Association Holdings (Pty) Ltd, and Western Province Cricket
Association
• Members’ loan register dated 24 May 2019
Documents reviewed to date (continued…) • Audited financial statements for the year ended 30 April 2016
• Audited financial statements for the year ended 30 April 2017
• Audited financial statements for the year ended 30 April 2018
• Audited financial statements for the year ended 30 April 2019
• CSA policy documents to date: ±56 documents
• CSA Governance Dashboard
• CSA Organisational Design Project documents
• Procurement schedule for 48 months
• Media Accreditation Policy effective January 2016
• Media Guidelines, Policy and Protocols
• Various emails provided by officials consulted with
• Listened to 702 podcasts
• Media searches
• Various Members council and Board Minutes of meeting
• Agreement entered into between CSA, SACA & SAPCT
• Various correspondence between SACA and CSA Officials
including CEO
• Disciplinary files for van Zyl, Eksteen and Nkhuta
• CSA Memorandum of Incorporation
• Various email communication relating to the WPCA and NWC
• Media and Commercial Rights Framework Agreement between
Cricket SA and GSC dated 22 August 2019
• Memorandum of Understanding between CSA and GSC dated
4 September 2018
• Various email communication between CSA and GSC
• Two computers containing CSA Financial information and Board
Minutes of Meetings
Documents reviewed to date (continued…)• Internal and External audit reports relating to the following:
o Appointment of Canie Junior Fire and Security System by Lundi Maja who was the facility and procurement manager at CSA
o Review of the governance, finance and administration process relating to the Stadium Upgrade Project
o Allegations of various misconduct against CSA employee named Dalene Nolan
o Allegations of abuse of power and misappropriation of funds against Martin Mota
o Allegations relating to Crescendo Networks (3G Consulting)
o Allegations of non-compliance with ICC standards by the Eastern Province Cricket Board, and
o Alleged procurement irregularities implicating Ziyanda Nkuta and Sedgars Sport
Consultations Conductedo Andrew Breetzke
o Archie Pretorius
o Chris Nenzani
o Christelle Janse van Rensburg
o Clive Eksteen
o Corrie van Zyl
o David Richardson
o Iqbal Khan
o Ken Borland
o Koketso Gaofetoge
o Kugandrie Govender
o Welsh Gwaza
o Marius Schoeman
o Musa Gubevu
o Nabeal Dien
o Nick Kock
o Omphile Ramela
o Pholetsi Moseki
o Prof. Shirley Zinn
o Prof. Steve Cornelius
o Telford Vice
o Thamsanqa Mthembu
o Unati Tshotwana
Imaging of Computers and ServersWe imaged computers (6) of the following employees:
o Thabang Moroe (CEO)
o Clive Eksteen (Head of Sales and Sponsor Relations Management)
o Dalene Nolan (Director COO’s office)
o Naasei Appiah (former COO)
o Zyianda Nkuta (former Acting CFO)
o Lundi Maja (former Procurement / Facilities Manager)
CSA Servers imaged
• Email server with 87 users
• Documents server
• Procurement / Supply Chain Server
Scope of Work• Alleged control breakdown within CSA
• Framework Agreement between CSA and GSC
• Expenditure on Corporate Credit Cards
• Revocation of the Media Accreditation of five journalists
• Allegation relating to possible mismanagement of the relationship between CSA and the South African Cricket
Association (SACA)
• Decision by CSA to exercise step-in rights relating to WPCA and NWCA
Status of investigationsScope StatusAllegation of revoking of media accreditation Completed
Allegation relating to relationship with SACA Completed
Review and analysis of potential red flags that may indicate inappropriate financial and other reporting, misappropriation of assets, inappropriate use of business assets and expenditures relating to credit cards
Completed
Fraud detection and prevention Completed
Effectiveness of internal controls 80% Complete
Examine payments related to tax and VAT liability 95% Complete
Step in rights at WPCA and NWC Completed
Framework agreement between CSA and GSC Completed
Loans to Affiliates 95% Completed
Draft Report Issued• Draft report issued on 1 June 2020 on investigations relating to Thabang Moroe. The said investigations related to the
following items:
o Framework Agreement between CSA and GSC
o Expenditure on Corporate Credit Cards
o Revocation of the Media Accreditation of five journalists
o Allegation relating to possible mismanagement of the relationship between CSA and SACA
o Decision by CSA to exercise step-in rights relating to WPCA and NWCA
• The Forensic auditors were not able to consult with Moroe regardless of various attempts to do so.
• Investigations relating to Moroe have been completed. The Forensic auditors are in the process of finalising other
investigations with a target date of 30 June 2020 for issuing the draft report for comments.
DISCIPLINARY MATTERS
Various disciplinary matterso September 2019: CSA Compliance department initiates an audit to establish employee
compliance with various CSA policies
o 23 October: SACA declares a dispute against CSA – failure to pay ±R2.4mil ito 2018 MSL
commercial agreement (SACA made a press release in the media)
o 29 October 2019: CEO suspends the COO, Naasei Appiah, Corrie van Zyl (Head of
Pathways) and Clive Eksteen (Head of Sales & Sponsorship) pending the finalization of
investigation of their alleged role in failure to pay SACA
o Charges proffered against Nassei Appiah, Corrie van Zyl and Clive Eksteen. Extra charges
were added against Naasei Appiah and Clive Eksteen emanating from the Compliance
Department’s initial investigation.
Various disciplinary matters (continued…)o 6 Disciplinary hearings held between November 2019 – March 2020
o All 6 employees found guilty of majority of charges brought against them
o 5 employees were summarily dismissed by an independent presiding officer
o Each disciplinary matter had its own independent chair / presiding officer
o 1 employee was given a final written notice
o 2 matters have been referred to the CCMA
o 1 appeal is still pending
o 1 appeal was dismissed, and the sanction upheld
SPONSORSHIP STRATEGY
Audit: Current positiono CSA negatively affected by the December 2019 crisis
o Standard Bank / Momentum / SACA call for Board to resign
o Public statement by Standard Bank not to renew
o Performance of Proteas in World Cup 2019 and India / England Test Series
o Customer survey
o COVID 19 Crisis
o Thabang Moroe issues
o Forensic investigation
Strategic PlanCampbell Jamieson (ex ICC commercial manager)
§ Packaging
§ Valuation
§ Rules of engagement
§ Internationalisation of Proteas brand
Integrated platform offerings
Building Commercial capacity
Commercial Strategy
New formats / products
Integrated PR approach
Dealing with governance issues reflecting negative on CSA
o Winning on the field
o Announcing sponsorships
o Stability in Administration
Excellence
o Improved responsiveness
o Commercial activity tracker
o Training
o Benchmarking
Stakeholder management
o Mapping in respect of Power / Interest (Mendelow’s)
o Early and often: engagement
o Stakeholder tracking via matrix
o Individualised engagement strategy
o Issues management
SUMMARYCommercial
Strategy/PackagingValuation
Developing of new properties
Internationalisation of brands
Selling of sponsorship properties
Stakeholder Management PR Plan
Training/ Benchmarking Consulting
Revenue
Professional CricketPlayer pipeline Infrastructure Administration
Future Tour Programme
Broadcast Revenue / Content
Sponsorship packages
Revenue to CSADollar / Rand Ratio
Competitive Proteas Team
PLANS FOR NEW SPONSORSHIP
COMMERCIAL STRATEGY 2020-2023
• Historically, CSA has relied on third-party agents or inbound sales for sponsorship.• A change in macro- and microenvironmental factors has caused a need for a change in commercial strategy.• A new commercial strategy has been formulated to address this and is currently being implemented.• The strategy document:
• aims to provide the background & of CSA sponsorship rights & provides an overview of the current market for
sponsorship rights
• Includes an evaluation of the processes of exploiting the sponsorship rights
• considers key market developments including an analysis of the sponsorship rights values and how other sports
governing bodies successfully exploit their sponsorship rights
• includes key factors that affect the value of sports sponsorship rights
• Sponsorship Management will be managed in-house by a sponsorship servicing & relationship team working of
appropriately skilled and motivated individuals to deliver on the objectives of the programme.
• The strategy addresses CSA’s primary challenge in delivering a powerful & meaningful partnership opportunity topotential sponsors is to deliver a consistent platform of association with the values of the CSA and of cricket.
CSA – MEN’S BILATERAL TEST CRICKET SPONSORSHIP
Test Series Official Sponsors
Test Series Naming Rights Sponsor
Series Naming Partner
CATEGORY PARTNER
CATEGORY PARTNER
National Men’s Test Team Sponsor
Test Team Sponsor
Official Hydration Partner
Official Beer Partner
Ball boys & girls Official Technical Apparel Partner
3 years
2 years 5 years 5 years3 years
CSA – MEN’S BILATERAL ODI CRICKET SPONSORSHIP
ODI Official Series Associate Partner & Suppliers
Test ODI Naming Rights Sponsor
Series Naming Partner
National ODI Test Team Sponsor
Test Team Sponsor3 years
CATEGORY PARTNER
CATEGORY PARTNER
Series Associate Naming Partner
Official Hydration PartnerOfficial
Beer Partner
Ball boys & girls Official Technical Apparel Partner
CATEGORY PARTNER
2 years5 years 5 years2 years 3 years5 years
CSA – MEN’S BILATERAL T20 CRICKET SPONSORSHIP
T20 Official Series Associate Partner & Suppliers
Test ODI Naming Rights Sponsor
Series Naming Partner
National ODI Test Team Sponsor
Test Team Sponsor3 years
CATEGORY PARTNER
CATEGORY PARTNER
T20 Back of Shirt Sponsor
Official Hydration Partner
Official Beer Partner Ball boys & girls Official Technical
Apparel Partner
CATEGORY PARTNER
CATEGORY PARTNER
2 years 5 years5 years 3 years
OTHER: NEW FORMAT CRICKET3TEAM CRICKET
THE CONCEPT OF 3TCRICKET
WHAT?3TCricket = 3Teams playing 2 halves in 1 match3-Teams of 8 players2 -Halves of 18 overs1-Match of 36 overs
WHY?3-To grow the game of cricket in South Africa and beyond2-To build an active community of cricket lovers1-To give back to cricket communities globally
HOW?3-The Solidarity Cup on the 27th of June 2020 at SuperSport Park2-The best of SA cricket talent playing in a Beta 3TCricket match1-Raising funds for the hardship cricket fund through Solidarity
THE SOLIDARITY CUP
Why it exists:• To launch an innovative new format of the game we love to the world, whilst raising funds for those members of the
cricket community who have found themselves in tough times during the COVID crisis.• What is it? A cricket, music and entertainment TV spectacular. This one-off Covid friendly, 3TCricket match featuring
24 of SA’s best cricketers.• Who does it serve? CSA. Those in need. The Fans. The Country.
The Vision:• Launch this first of its kind 3TCricket and entertainment event.• Raise a whole lot of money for those in need.
The story:A futuristic, fan focused, entertainment festival with heart.
The Solidarity Cup is a product, licensed to Cricket South Africa.
WORDS OF INSPIRATION
“Sport has the power to change the world... It has the power to inspire. It has the power to unite people in a way that little else does. – Nelson Mandela