Boxing South Africa & SAIDS 2020/21 Annual Reports; with Deputy Minister

Sport, Arts and Culture

01 March 2022
Chairperson: Ms B Dlulane (ANC)
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Meeting Summary

Annual Reports 2020/21

In the virtual meeting, the South African Institute for Drug-Free Sport (SAIDS) noted its clean audit and the increase in doping cases in 2020/21. The Department was pleased with its improved performance meeting 80% of its targets. It noted that the Drug-Free Sport Act will need to be amended to align with the World Anti-Doping Code which came into effect on 1 January 2021. Due to the restrictions on sports events, SAIDS only administered 209 tests in 2020/21 in comparison with 1766 tests in 2019/20. Sadly, South Africa had one of the highest years for doping, with 21 doping cases out of 209 tests compared to the previous year of 54 cases out of 1766 tests.

Boxing South Africa has had a huge turnaround compared to previous years according to the Department. Performance moved from 71% in 2018/19 to 92% in 2021/21. This indicates the efforts the Boxing SA Board has made to turn the corner. The unqualified audit opinion with findings has not changed. Looking at the challenges experienced, the Internal Audit at Boxing SA identified a case of financial impropriety against some officials. The Board is currently implementing the recommendations of the forensic investigation report.

Meeting report

The Chairperson remarked that even though we are coming back from COVID, we are still losing lives every day. She spoke of the recent passing of Rikhado Makhado, popularly known as Riky Rick, and sent condolences to his family and friends on behalf of the Committee. She congratulated Banyana Banyana for defeating Algeria 2-0, the Proteas for defeating New Zealand and she hoped that Bafana Bafana could pull up their socks.

Department of Sports, Arts and Culture (DSAC) overview on SAIDS
Director General, Vusumuzi Mkhize led the Department of Sports, Arts and Culture delegation.

Ms Sumayya Khan Deputy Director General : Recreation and Sports Development, said SAIDS performance shows continuous improvement , they were able to achieve 80% of their targets which has been an upward trend over the years from 56%, 60% to 80%. There was a slight increase in the budget. Looking at the other income they generate there has been an increase regardless of the challenges they experience. It obtained a clean audit.

The Board consists of seven males and three females, with a non-racial composition,. The staff consist of 10 females, eight males, six black employees, 9 coloureds, one Indian and 2 whites. The challenges which SAIDS has tried to resolve through the Minister was the ineffective Appeals Board resulting in the risk of court cases. This was resolved as the Minister replaced the Appeals Board chairperson and one of its members.

The second challenge was the outdated Drug-Free Sport Act of 1997 as amended in 2006. The SAIDS Act must be in compliance with World Anti-Doping Code which came into effect on 1 January 2021. The intervention to amend the SAIDS Act is critical to align with the WADA Code.

The third challenge is the lack of cooperation by the Department of Basic Education (DBE) for access to schools for SAIDS to conduct anti-doping education as well as actual testing. DSAC is addressing the matter as part of overall engagements with the DBE.

South African Institute for Drug Free Sports 2020/21 Annual Report
Mr Graham Abraham, SAIDS Deputy Chairperson, asked the CEO to present.

Mr Khalid Galant, SAIDS CEO, said the presentation was within the context of the pandemic lockdown. Its performance during lockdown was focused on the athletes travelling to Tokyo Olympics as that was the only international sport events taking place as all other international and domestic sporting events were on hold.

SAIDS managed to administer 209 tests in 2020/21 in comparison with 1766 tests in 2019/20. Sadly, South Africa had one of the highest years for doping, with 21 cases out of 209 tests conducted compared to the previous year of 54 cases out of 1766 tests.

Mr Galant noted the impressive use of technology during the lockdown in of South Africa for anti-doping education; other aspects of learning in Sports and forms of communication. South Africa became one of the top 10 users of the global online e-learning platform. All the athletes of Olympic Team South Africa joined and completed the online course before the Tokyo Olympics.

The CEO said there was limited face-to-face education opportunities in schools, with schools being on rotation and sports not being a priority during lockdown. Their anti-doping campaigns were directed at school clubs, gyms, private clubs, sport clubs [audio unclear].

Adv Dave Mitchell, SAIDS Chairperson of the Audit and Risk Committee said [audio unclear].

Mr Onke Ngwane, SAIDS CFO, said SAIDS generated a surplus which can mainly be attributed to operations being suspended due to the COVID-19 pandemic and resultant lockdowns. Total assets exceed total liabilities by R11 825 000 (2020 net assets of R2 214 000). The entity will continue to practice austerity measures and budgetary control to maintain a positive position.

SAIDS had an unqualified audit opinion which means that all their objectives and indicators were clearly defined, all targets and actual results were accurate. This was not their first clean audit.

The CEO closing remarks [audio unclear].

Discussion
Mr T Mhlongo (DA) asked the DG about the lack of recognition by DBE for giving SAIDS access. This has been outstanding for some time and he thought that there was an MOU to sign but it seems DBE is delaying the process. He asked for an ETA for a joint DG meeting. When will they implement SAIDS' access to schools and when is the Amendment coming to them for comment.

Mr Mhlongo asked if SAIDS is experiencing any challenges with the different sporting codes. He noted the January 2022 list of prohibited medications on the SAIDS website and referred to one drug [name unclear] and asked what does the drug entail and why was it prohibited. There is a need for more detail on that.

Mr D Joseph (DA) noted the audit improvement. He asked for the difference between surplus and underspending. He asked if the application for condonation to National Treasury about the irregular expenditure was for both financial years and on what basis it could apply for condonation. Is testing announced or does it not inform sport coaches or does it inform them in advance? Do all sports cooperate with it about testing? How many court cases does SAIDS have and do people challenge it in court over drug results? The SAIDS Board term ends in November so when will it call for nominations?

Mr M Zondi (ANC) said SAIDS should be given credit for not having any material findings and he hopes it will perform the same in the coming years. He commended the Department for providing SAIDS with support and for their good working relationship as the Committee noted the results.

Mr Zondi stated that SAIDS needs to put more pressure budget on anti-doping education especially in schools to avoid the consequences of positive doping athletes, which is costly and takes them back. There should be more pressure on anti-doping education to avoid such consequences.

Ms R Adams (ANC) asked how SAIDS ensures that doping violations are under control as the country is still under COVID-19.

The Chairperson stated that she is happy that SAIDS received a clean audit and everything is moving well. She asked for more information on what DBE and DSAC are doing to fast track the challenge of drug testing in schools.

SAIDS and DSAC response
DDG Sumayya Khan responded to the Chair's question saying that parents do not want SAIDS to conduct testing of athletes at schools. Even when it is scheduled for permission, they still experience refusal. This is something they need to discuss with SAIDS and athletes as they do understand that they would need permission from the parents to have learners tested.

On the Act amendments, SAIDS has formed a drafting task team and the Department is involved in through its Director of Scientific Support and Athletic Support, as part of the team. She does not think the SAIDS Amendment Bill is on the parliamentary legislation schedule yet as for now they are trying to finalise the draft Bill.

On the terms 'surplus' and 'underspending', SAIDS does not generate any income, so any surplus should not be considered as underspending. The CEO will be able to elaborate more on the surplus indicated in the report. It is the duty of the accounting authority to follow the Treasury regulations as a guide in how condonation is done.

Mr Galant, SAIDS CEO, replied that SAIDS has a project plan for the amendment of the legislation scheduled for this year. The project plan indicates a special consultation with the Committee to engage on the draft Bill before it is finalised and published for public consultation.

Mr Galant replied that SAIDS does hold doping hearings. When the athlete is unhappy with the decision by the independent panel, they may lodge an appeal with the SAIDS Appeal Board, which is also independent of operations and it is constituted by the Minister. Last year they had two appeals and the athletes lost both the appeals. SAIDS has not experienced any challenges in the criminal or civil court in South Africa. They have received threats from athletes about taking SAIDS to court, but it has not materialised at least in the year under review.

Mr Galant replied that SAIDS does not announce when it will conduct testing as this is the international standard for testing which requires unannounced testing, and this is one of the concerns that schools and parents have. With normal sports such as cricket, rugby, football, PSL matches, SAIDS goes unannounced but it do have to engage with the governing bodies ahead of time for logistics and preparation. However, they do not know ahead of time which players, athletes or matches will be tested. They have a good relationship about testing logistics with entities like PSL, South African Rugby, cricket and other federations.

The CEO replied about 'surplus' and 'underspending', saying in 2020/21 it was a combination of both. The surplus part of it could have been their own generated funds and underspending could have been due to the pandemic. What SAIDS has done is to submit an application to National Treasury to retain the surplus and it received approval to retain the surplus to use it for its operation.

On the condonation of irregular expenditure, Treasury provides a guideline of how and when it can apply for condonation. For example, there should be no loss by the entity which there was not in its case. It needs to show there was no fraudulent activity or misconduct related to the irregular expenditure. It needs to be investigated and reported to the Audit Committee and the Board, and there is a need for consequence management.

The irregular contracts were for internal audit services and courier services in the testing sample. On investigation, it was found to be fair and transparent. The only issue it found with the process was the manner in which its evaluation committee was composed.

In her closing remarks, Deputy Minister Nocawe Mafu thanked SAIDS, the Department and the Committee for the interaction. She believed that the discussion underlined that it is very important to ensure that there is a drug free sport in South Africa and in the world. On the relationship between DBE and DSAC, she believed that the Department will need to come back and give a response to the Committee, as this does not only affect SAID. On the federations and SAIDS, at some point all federations come to report to the Committee and they can each speak to this.

Department of Sports, Arts and Culture (DSAC) overview on Boxing SA
The Deputy Minister welcomed Boxing SA and called on the DDG to present its overview.

DDG Khan said that looking at a three-year performance overview, there has been a huge turnaround compared to the previous years. Performance moved from 71% in 2018/19 to 92% in 2021/21. This indicates the efforts the Boxing SA Board has made to turn the corner. Looking at the three-year income trend, the government grant moved from R12.618 million in 2018/19 to R18.041 million in 2020/21 while other forms of income were reducing.

The unqualified audit opinion with findings has not changed. The Boxing SA Board will talk to the Auditor-General findings. The term of the Board appointed by the Minister in terms of the South African Boxing Act, is 12 December 2020 to 11 December 2023. The Board is still male dominated but they hope that this gender balance will change as it consists of six males and one female.

The executive management consists of the acting CEO, chief financial officer and director of operations which is still male dominated. The staff has a majority of females with seven females and six males.

Looking at the challenges experienced, the Internal Audit at Boxing SA identified a case of financial impropriety against some officials. A request was made to the Department to assist with the appointment of a forensic investigator. The investigation was completed, and the report submitted to the Board. The Department is happy with the intervention and it assisted with the procurement and appointment of a forensic investigation company. The Board is currently implementing the recommendations of the forensic investigation report.

The Board has requested support as it embarks on its strategy. The Minister emphasized they must have a strategic workshop which they conducted. There are various areas in which they wanted to implement the strategic plan

See presentation for further details

Boxing SA (BSA) presentation
Mr Luthando Jack, Boxing SA Board Chairperson, noted all board members were present except for one member and the Acting CEO. He handed over to the Mr Sithole to present.

BSA Acting CEO Erick Sithole spoke to the organizational structure, target performance against its 2020/21 Annual Performance Plan and its financial report.

See presentation for further details

Discussion
Mr Mhlongo welcomed the presentation. He stated that the perception is that South Africa has only male boxing and there is no female boxing. BSA leadership is male dominated. The Board has only female, while the management is male dominated. It is shocking for the Committee to see the imbalance. He asked if it has an ETA to address the inequality of the Board.

Mr Mhlongo asked if the general feeling from the fight fraternity is that the World Boxing Council (WBC) does not care about Africans or South Africans. What is their view? He asked why BSA does not mention the challenges within boxing – for example a Cape Town lady by the name of Elinhle (SP) is no longer participating in boxing. Is there a turnaround strategy to address the challenges?

Mr Mhlongo asked when BSA would appoint a permanent CEO. Has the post been advertised and if so, who are the shortlisted candidates? He asked about the Director of Operations post.

Mr Mhlongo said that BSA has been experiencing challenges with not having key role players in place such as for communication, legal and marketing and it is clear it still experiences challenges. BSA does not have a clean audit as it does not address the key issue which is having a proper management team to implement what is needed in Boxing SA.

Mr Mhlongo asked if BSA has a functional Internal Audit. What is the status of labour disputes and litigation against BSA and how much has it spent on litigation costs? Going back to 2007-2009 due to the unauthorized expenditure (IsiZulu 2:50:41-2:52:30) BSA is still continuing to experience unauthorized expenditure. What is its strategy and turnaround time to address this? The Auditor General discovered that there is irregular expenditure and there is a breach of supply chain management (SCM). This matter has been outstanding even before the Deputy Minister joined the department. He asked how doping affects boxing and their partnership with SAIDS.

Ms V van Dyk (DA) asked Boxing SA about its safeguarding policy for the health and safety of boxers which she did not see on its website. She asked if it has received any complaints about sexual harassment or abuse in the past five years. If so, where do victims complain and what support is available to them?

Ms D Sibiya (ANC) asked about the status of women in boxing. She asked if an internal audit department has been set up in Boxing SA. She asked the Board to elaborate on the CFO suspension.

Ms Adams asked why BSA spent so much on COVID-19 testing, about licences, and why there was no oversight over procurement and no consequence management at Boxing SA. What has the Board done to act on the audit findings?

Mr Zondi asked for more information on women development.

Mr Joseph asked the DG, about the new structure that the DG presented on the screen, is it a new structure, completed structure or is it work in progress. If it is a completed structure is there any recruited qualified and skilled people in the new structure. In regards to the workshop that took place did it focus on the on good governance and financial counting management.

BSA response
Ms Zandile Kabini, BSA Board member and Women in Boxing Committee (WiBC) chairperson, replied about the number of women in boxing in Quarter 3 of 2021/22. They have 82 women licensed in boxing compared to previous years where 100 women were licensed.

BSA formed a Women in Boxing Committee (WIBC) which is chaired by herself. WIBC developed a business plan that consists of a number of programmes. The programmes are centered around specific months dedicated to women in boxing in the country. Their programme plan was shared with the Deputy Minister who then accepted the programme.

On progress to date in the implementation of the women boxing programme. They have fortified the Women in Boxing Committee with another member, Lebo Motsoeli who is the SABC sports broadcaster. The Committee is looking forward to utilizing her experience which will benefit the boxing programme in capacitating some of the SABC Sport platforms to communicate women in boxing content. A large number of women in boxing have participated on various SABC sports platforms on national and regional TV and radio.

In Quarter 3 of 2021/22, the Women in Boxing Committee hosted a women in boxing tournament in Durban in line with the 16 Days of Activism Against Gender Based Violence. WIBC is currently making progress in the implementation of their Women In Boxing programmes. Upcoming activities included a Women In Boxing training and capacity workshop in March in line with International Women’s Month. The training will be combined with all-women tournaments.

BSA CEO, Mr Sithole, replied that Boxing SA does have an internal audit with one employee who is assisting it on matters of irregular expenditure and in moving forward to ensure that BSA does not experience irregular expenditure.

The response of Mr Sithole, BSA Acting CEO, was inaudible.

Mr Jack, BSA Board Chairperson, replied that the strategic workshop had also dealt with matters of governance – of having a strong backbone – because if BSA does not have a strong administration it would not be able to obtain its goals. Looking at safeguarding policy on health and safety, BSA is highly regulated by the Act and its regulations which are prescriptive in ensuring that health and safety are a primary priority in boxing.

Mr Jack explained that SAIDS is independent from Boxing SA. SAIDS attends BSA venues unannounced and does what it has to do. Going forward BSA would like to partner with SAIDS on education to try and eliminate the use of drugs in its sport.

BSA is in the process of hiring a permanent CEO but they do have a permanent Director of Operations who is Mr Mandla Ntlanganiso.

Mr Mhlongo mentioned that not all his questions were answered.

The DDG replied that the Department has taken steps to ensure that women in sport are given the support they need. The Department has engaged with the commission of grants where they have provided free education to women in boxing. It has engaged with the provinces to ensure that R350 000 is set aside for women in boxing. For every boxing tournament that takes place there should be a minimum of two bouts for women boxers, so the work done in this area is visible.

As for transformation that is on record – and Mr Mhlongo is correct – for in the previous meeting the Department presented on general transformation in all federations and the Committee gave feedback that this issue is not negotiable.

The Chairperson thanked the Deputy Minister. She asked BSA to try to do more good work as the Committee is aware that it is experiencing challenges. She then released BSA and the Deputy Minister.

The Committee considered and adopted the minutes of 2, 8, 15, 18 February 2022.

Mr Joseph noted that based on the 8 February 2022 minutes, Cricket South Africa still owes the Committee a written report. The Chairperson seconded this point about the outstanding information that the Committee asked for.

The meeting ended.

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