‘Sascoc wastes money’
SPENDTHRIFT: INQUIRY HEARS SPORTS BODY’S OUT OF CONTROL SPENDING
Legal battles are among the most significant factors responsible for the body’s mounting debt.
Exorbitant spending was out of control at the SA Sports Confederation and Olympic Committee (Sascoc), a ministerial committee of inquiry heard yesterday – with the three-member panel admitting they were stunned by the frivolous approach taken by administrators at the cost of talented athletes.
Legal battles are among the most significant factors responsible for the organisation’s mounting debt, with Sascoc having repeatedly landed up in court due to clashes with member federations.
Sascoc vice-president Barry Hendricks confirmed the umbrella body had spent R5.6 million on an independent disciplinary inquiry which saw the recent dismissal of three senior employees.
“We are a civil society structure and money is critical to us, but we felt that the matters were so serious – theft, sexual harassment, collusion, money laundering – that we had to pay for the process to be completed,” Hendricks said.
This was not a unique situation, however, and Hendricks said he was told at a council meeting in 2015 that Sascoc had already accumulated more than R6 million in legal fees.
Hendricks claimed former Sascoc CEO Tubby Reddy’s personal assistant had flown first class on a business trip in 2016, at a cost of R90 000 to the organisation.
Earlier, in her submission to the committee, Sascoc deputy president Hajera Kajee revealed that board president Gideon Sam received a daily allowance of $500 (R6 000) when he was on Sascoc duty, in line with the organisation’s policies, while she and Hendricks received $350 (R4 200) a day.
During the 2016 Rio Olympics, due to financial constraints, Kajee said all travelling executive members had agreed to an allowance of $200 (R2 400) a day, though the policy had not been permanently adjusted.
These allowances were on top of monthly retainers of more than R16 000 which board members received for holding the voluntary posts.
“The costs (of the disciplinary report) were astronomical by any standard, and I don’t think that’s a factor Sascoc has taken into account in the way they operate,” said inquiry committee member Shamima Gaibie.
“The flight costs we’ve heard about in this hearing – relating to business-class trips for 14 members of the board, the five-star hotels and the stipends – all suggest to me an exorbitant approach to the running of Sascoc.
“It’s not quite in accord with Sascoc’s inability to sometimes fund compelling athletes.”
Meanwhile, with the inquiry gaining momentum after three weeks of submissions, Kajee claimed human resource policies had been ignored in the disciplinary action taken against the three senior employees who were fired in January – former CEO Reddy, former CFO Vinesh Maharaj and former senior manager Jean Kelly – as they did not have the opportunity to face an internal disciplinary hearing.
However, Gaibie, a labour law expert, suggested due process had been followed through the independent investigation. “I think we’re at loggerheads with labour law,” she told Kajee.
The flight costs we’ve heard about – relating to business-class trips for 14 members, the fivestar hotels and the stipends – all suggest to me an exorbitant approach to the running of Sascoc.
Shamima Gaibie Member of inquiry committee
In his submission, Hendricks said all three sacked employees had been given an opportunity to respond to the costly inquiry report, and had opted not to do so.
He also alleged that Reddy had not followed due process by approaching the sports ministry to address apparent governance concerns within the Sascoc board, rather than addressing the matter internally.
The three sacked staffers were all set to appear before the inquiry committee later this week, along with various other current and former sports administrators, including South African Football Association CEO Dennis Mumble.
The inquiry, led by retired Judge Ralph Zulman, is scheduled to conclude later this month. –