Boxing promoters ‘extorted’, court hears
High Court defamation trial brings sport bodies under scrutiny
A BOXING deal approved by sport minister Fikile Mbalula was “organised theft”, the High Court in Johannesburg has heard.
The agreement between Boxing SA (BSA) and the Premier Boxing League (PBL) again came under scrutiny as the defamation trial of BSA and its recently suspended CEO Moffat Qithi, resumed on Friday.
Promoter Branco Milenkovic is suing them for R4-million after he was blamed for Noni Tenge being stripped of her IBF world welterweight title for inactivity last year.
Qithi allegedly accused Milenkovic of breach of contract by failing to give Tenge a fight to defend the belt.
But Laurance Hodes, SC, for Milenkovic, argued that BSA was actively trying to weaken strong promoters.
In his cross-examination of Qithi he stated that Dicksy Ngqula, the owner of the PBL and a former SABC presenter, had a criminal record with “several” convictions, although he didn’t provide details.
Qithi, who was suspended by BSA after it emerged he had failed to disclose his own criminal record when he applied for the job, replied that he didn’t know about that.
Hodes argued that the PBL operated outside of the regulations, pointing out that the development promoters contracted by PBL were paying BSA 20% of their sanctioning fees — far more than the stipulated 10% of TV income and 5% of other revenue, such as sponsorships and gate money.
“This is organised theft,” stated Hodes. In his argument later he called it “institutionalised extortion” of the small promoters.
Qithi denied anything untoward, saying Mbalula, the director-general, Sport and Recreation’s legal department and the BSA board had approved the deal between BSA and PBL. Boxing regulations were the prerogative of the minister, he said.
Mbalula’s spokesman, Paena Galane, told Sunday Times later that BSA had granted the approval, “not the department or the ministry”.
Hodes, stressing that BSA was simply looking “to earn an extra buck”, produced an SMS sent by acting CEO Loyiso Mtya to Milenkovic: “Your job is only to pay so we can get rich.”
Hodes then asked Qithi if members of BSA were entitled to own their own promotional companies. “I don’t think I’ve seen where it is allowed.”
Hodes referred to a company registered last year by Mtya, called Mtya Boxing Empowerment.
Hodes said further that Mtya had previously been suspended after BSA had failed to pay SA Revenue Service tax deducted from boxers’ purses.
Hodes described BSA as “a windmill”. “We get the same people coming back. We’re not getting rid of the rot that has set in.”
Kevin Hopkins, for BSA, argued the statements attributed to Qithi were fair comment and not defamatory.
Judgment was reserved.