Suspension of national federations by SASCOC: DSAC briefing

Meeting report

The Chairperson commenced the meeting by acknowledging her delay, attributing it to network issues. She proceeded to convey condolences on behalf of the Committee for the passing of a luminary in the entertainment industry, Ms Sylvia Ncediwe Mdunyelwa, who regrettably departed on 23 August 2023.

She shared that she, too, was dealing with her own personal loss as she had received news of a bereavement the previous night. Despite her personal circumstances, she emphasised her commitment to conducting the meeting effectively.

The Chairperson extended a warm welcome to all those present, including Committee Members, guest participants, and support staff. The following apologies were noted: Mr J Mamabolo (ANC), and Deputy Minister Ms Nocawe Mafu. The Committee Secretariat noted that no formal apology was received from the Minister, Mr Zizi Kodwa.

The Chairperson mentioned that she did receive an apology from the Minister through the Deputy Minister.

Mr M Zondi (ANC) moved for the adoption of the agenda.

Ms R Adams (ANC) seconded the motion.

The Acting Director-General of the Department of Sport, Arts and Culture (DSAC) was invited by the Chairperson to introduce her team, and this was followed by a similar invitation extended to the President of SASCOC.

DSAC Overview: South African Sports Confederation and Olympic Committee’s Suspension of Eight National Federation

Dr Cynthia Khumalo, Acting Director-General, DSAC, led the Committee on the DSAC overview presentation.

SASCOC Mandate
Dr Khumalo explained that the presentation would encompass various facets related to SASCOC's mandate, briefly delving into the Medium Term Expenditure Framework (MTEF) allocation and governance matters. She clarified her intention to commence with the introductory segment of the presentation and subsequently invited the Deputy Director-General to proceed with the slides.

She stressed that DSAC acknowledged the provisions of Section 2(1) within the National Sport and Recreation Act, which outlines the establishment of a Sports Confederation. In this specific context, SASCOC perfectly fits the criteria articulated in the Act. The Act defines a Sports Confederation as an entity recognised by the Minister under Section 2, representing sport or recreation bodies, including Olympic national federations. Additionally, it functions as a coordinating macro body responsible for promoting and developing high-performance sports within the Republic.

Dr Khumalo emphasised that SASCOC duly notified the Department regarding the suspension of eight National Federations. The primary catalyst behind these suspensions was non-compliance, a significant contributing factor that merited attention.

Ms Sumayya Khan, Deputy Director-General: Recreation Development and Sport Promotion, DSAC, thanked Dr Khumalo and greeted all the attendees respectively.

She moved on to the slide about the background, outlining how SASCOC supported the Department in preparing high-performance athletes for international events. She explained that SASCOC oversaw multiple sports, and was responsible for the preparation, and performance of teams at various international events, including the European Games, Paralympic Games, Commonwealth Games, World Games, All Africa Games (now African Games), Olympic Field Games, and African Union Sports Council Games.

Ms Khan provided the MTEF funding figures for SASCOC over three years:

• 2021/2022, it was R11 701 000.
• 2022/2023, it was R12 009 000,
• 2023/2024, it was set at R12 055 000.

According to the Act and SASCOC's constitutional imperatives, SASCOC had suspended eight sports and recreation bodies, and it would provide details on these matters. Ms Khan mentioned that the Department would await SASCOC's completion of its process, after which it would furnish the Department with a full report. SASCOC would follow the process outlined in the Sports and Recreation Act for any unresolved issues, escalating those issues to the Minister.

See attached for full presentation

Suspension of Eight SASCOC Members: Ensuring Membership Compliance with Good Governance (SASCOC)

Ms Patience Shikwambana, Chief Operating Officer, SASCOC led the Committee through the presentation, highlighting various factors contributing to membership compliance challenges. The presentation outlines:

To gain recognition as a Member in Good Standing, National Federations in South Africa overseeing sports development must meet specific criteria, including:

1. Aligning their constitution with the SASCOC Constitution and ensuring transparent, accountable, and responsible operations.
2. Establishing a democratic and properly constituted framework.
3. Demonstrating sound financial management and accountability.
4. Adhering to organisational structures in line with government boundaries.
5. Acknowledging the SASCOC Constitution, the Sport and Recreation Act of 2007, and DSAC.

Documents to submit:

• Constitution/Statutes
• Copies of Audited Financial Statements for the past two fiscal years
• List of office bearers and their contact information
• List of affiliates and their contact details
• Summary of international activities for the past two years
• Summary of national activities for the past two years
• Number of registered members by geo-political provinces
• Minutes of the two most recent Annual General Meeting (AGM) /Council Meetings, including the meeting notice, agenda, and attendance register.

To maintain good standing and participate in general meetings, members must annually submit a Good Governance Practice Assessment Tool. This tool assesses their compliance with good governance requirements based on their constitution and the SASCOC constitution, covering norms related to governance structures, documents, and processes.

Governance documents to submit

• Updated Constitution
• AGM/General Meeting Minutes (Notice, Agenda, & Attendance Register)
• Audited Financial Statements
• Annual Reports
• Letter from the International Federation (IF) confirming Membership.
• List of Commissions and Committees
• Organisational structure or Organogram

Membership Audit Form - (Annexure A-F)

This form covers various aspects, including the organisation structures in the nine provinces, geo-political boundaries in 52 districts, demographics of executive members, statistics on athletes, coaches, managers, and administrators, facility access, and the national federation's calendar of meetings/events.

Safeguarding Policy

Members must have safeguarding policies aligned with SASCOC, including the Safeguarding Officer(s) and their contact details.

Suspension of Members

During the SASCOC General Meeting on 22 April 2023, Ms Kim Pople, Chairperson: Stakeholder and Membership Commission, SASCOC, presented the status of members' compliance with good governance practices. Out of 86 SASCOC memberships, including 77 National Federations and 9 Provincial Sports Confederations, eight members were found non-compliant with good governance practices.

Eight (8) Members Who Were Suspended by SASCOC:

1. Chess South Africa
2. South African Handball Federation
3. South African Korfball Federation
4. Powerboat Racing South Africa
5. South African Underwater Sport Federation
6. Eastern Cape Sports Confederation
7. Northern Cape Sports Confederation
8. North West Sports Confederation

SASCOC Intervention to Ensure Compliance

SASCOC held one-on-one meetings with non-compliant members to understand their reasons, which included challenges related to COVID-19, lack of funding from DSAC and LOTTO, incomplete handovers from previous committees, and internal conflicts. An extension was granted, but suspension ensued, in accordance with SASCOC's constitution and bylaws.

Lifting of the Suspension

SASCOC has lifted the suspension for three out of eight members:

1. South African Handball Federation
2. Eastern Cape Sports Confederation
3. North West Sports Confederation

The following five members remain suspended:

1. Chess South Africa
2. South African Korfball Federation
3. Powerboat Racing South Africa
4. South African Underwater Sport Federation
5. Northern Cape Sports Confederation

A task team has been established to assist these non-compliant members in regaining good standing status.

Ms Shikwambana highlighted that SASCOC would continue to intervene and assist these members in achieving compliance by the end of November 2023.

(see attached presentation)

Discussion

Mr M Zondi (ANC) commented that the National Lotteries Commission (NLC) mentioned a high number of non-compliant federations that have not accounted for the funds provided by the Commission. They also do not submit progress reports. He asked how DSAC and SASCOC ensure compliance and accountability of member federations for funds allocated to them by DSAC, SASCOC, and other funding entities.

He mentioned that the constitution and some governance documents of SASCOC have been updated and asked if there have been any delays or setbacks due to knowledge of the previous constitution.

When was the last follow-up from the Department to SASCOC, regarding the update and status of the suspended members?

He lastly asked for SASCOC's assessment of the recent Netball World Cup – whether it lived up to its expectations and what it believes were the successes, shortcomings, and lessons for the future.

Ms R Adams (ANC) commented that she was happy with the progress of the three members whose suspension was lifted. She said she trusts that they will comply going forward and cooperate well. How is the Department planning to assist in ensuring the status of suspensions of the Sports and Recreation bodies affected? In May 2021, Parliament tasked the Committee to be the facilitators between the two board rooms at the Chess South Africa Federation. The boardroom battle has continued for years and years and has had a negative impact on the sport of chess.

She added that the boardroom factions in the sport of chess have continued for years and asked what SASCOC had done since the last engagement with Parliament on the matter. She further asked what SASCOC did prior to the suspension of Chess South Africa.

She lastly asked the Department and SASCOC to provide a figure of how many National Federations out of the 77 affiliated with SASCOC had financial statements and held their annual general meetings (AGMs) for 2022.

Ms D Sibiya (ANC) asked about the reasons the five remaining members gave when asked about non-compliance.

She further asked whether SASCOC had guideline documents on how poor governance can be prevented in the future.

She lastly asked whether Federations constantly review their set guidance policies.

Ms V van Dyk (DA) commented that the President of SASCOC, on 16 May 2023, said to the Committee that it would receive responses on outstanding questions and to date, these have not been received.

She asked how many Federations have still not adopted safeguarding policies and if any of them have been suspended because of this.

She further asked if SASCOC has a report of how many Federations were in good standing in terms of submitting audited financial statements and holding AGMs.

She then commented that a Member previously asked what systems SASCOC put in place to assist Federations that did not comply. She said she received communication that on 23 January 2023, there was an outcome from three judges on recommendations of who the legitimate board of the Chess South Africa Federation was. The judges wrote to SASCOC requesting a meeting and assistance in obtaining documents from the Provincial Chess bodies. She mentioned that she saw the response of SASCOC, and the next day, chess was provisionally suspended. She asked what SASCOC has done to assist Chess South Africa to become compliant.

She added that she received a letter, which she can provide to the Committee, stating that SASCOC and the Department supported the illegal Chess Board withholding financial statements. How is SASCOC going to interfere? She said the members of the rest of the provinces were invited but these bodies could not provide letters of good standing. She asked SASCOC to explain how the Federal Bodies could be proven legitimate if they could not provide letters of good standing.

The Chess provincial members were invited but this board could not provide letters of good standing. She asked SASCOC to explain how the Chess Board is in good standing because they could not provide letters that they are in good standing. This is a compliance requirement from SASCOC. This illegal Chess Board has not provided financial statements for 2017 and 2021. It was only in February 2022 that it provided the financial statements. What is the plan to get the outstanding documents from the province's side?

Lastly, she asked for SASCOC’s assessment of Athletics South Africa (ASA) regarding the dismal performance of athletes at the 2023 World Athletics Championships. What lessons have been drawn going forward in preparation for the 2024 Paris Olympics?

Mr D Joseph (DA) commented that he was hearing about boardroom politics again. He said the process of electing people to the board should be fair and added that people must reach a consensus or vote where there is a difference in opinions. He said these board politics affect legal fees where people elected on boards have an unfair advantage because they can use the federation’s money for legal fees, unlike people who are not elected and do not have resources to defend themselves. He asked SASCOC to provide details on the amount of legal fees federations and confederations are spending on legal issues that they face or to get a legal opinion. He said he always focuses on legal fees because the public funds these. He said SASCOC can respond in writing if it does not have the information at hand.

How do federations administratively operate after the suspension of individuals, where there is other compliance work that they still submit and whether monitoring still happens for other compliance activities relating to the suspended Federation by SASCOC?

He further asked for clarity on money allocation handed over to federations – whether there were specific dates or timeframes, and whether transfers of money allocation happen on time.

He lastly commented that SASCOC may have a plan for athlete improvement. He asked whether this plan is working, is on schedule, and whether it is working on all sporting codes, or some codes need to improve efficiencies.

Mr E Mthethwa (EFF) said he did not have questions but rather wanted to congratulate SASCO for its consistency in emphasising the need for professionalism. He said SASCOC’s presentation talks about good governance and compliance, and he wondered why SASCOC was the one sitting before the Committee today and not the non-compliant culprits. He said SASCOC’s emphasis on professionalism and compliance is what he has been yearning for in the Arts and Culture sector.

He said he did not want to set the wrong precedent by pleading the case of non-compliant federations. He said he was concerned that if the Committee sits in meetings like this to seek empathy for non-compliant entities, the Committee could find itself next time sitting with 20-odd more non-compliant federations, that  will cite that the Committee had pleaded a case for others who were in a similar situation.

He congratulated SASCOC and said he hopes the Department is learning from it. The Arts and Culture is not moving forward due to family members running government-funded organisations. This speaks to poor governance. He commended SASCOC for what it was doing in keeping track of compliance policies.

Mr T Mhlongo (DA) commented that the Committee asking SASCOC questions is not pleading anyone's case but rather for everyone to know how to mitigate issues to ensure that history does not repeat itself.

He further said that he saw some positions on SASCOC's website for the roles of SAGF Development Manager and a Boxing South Africa Human Resources Manager position. He asked when those positions would be filled.

He further asked whether SASCOC had any other positions to fill or if its office was fully staffed. Were there any gaps in the administration that SASCOC has yet to fill?

He lastly asked about the kind of relationships SASCOC has with different sporting codes. He made an example that Banyana Banyana was playing at East Rand Stadium, where it was preparing for the World Cup, and asked whether SASCOC knew what was happening that day. He further asked what the leadership commentary was from SASCOC to SAFA on the events at East Rand Stadium. What are SASCOC’s views on SAFA right now? Regardless of what they presented on paper, are they doing what they said they would do?

The Chairperson thanked Mr Mhlongo and used some of his clan names to compliment him. She stated that it was heritage month, and the Committee ought to recognise and embrace those clan names as that is part of heritage.

Ms V Malomane (ANC) requested documentary proof of the five Federations who are non-compliant as an oversight review to be done by the Committee. This will assist those who are non-compliant and suspended. The Committee will have further information.

She further asked what SASCOC's status was in relation to BRICS for building collaboration and relationships around high-performance sports. She asked whether there were any conversations around forming partnerships, funding research, and coordinating with BRICS countries.

Regarding the allocation of funds, she commented to the Department that some sporting code members had expressed challenges around money being allocated to them. She asked whether the MTEF allocation was sufficient to ensure such issues were dealt with.

The Chairperson asked the Members to lower their hands so that DSAC and SASCOC could provide responses. Further questions will be allowed after the initial responses by the aforementioned.

Responses from DSAC

Dr Khumalo asked the DDG to address the questions specifically for DSAC.

Ms  Khan expressed her gratitude to the Members for their questions. She mentioned that she had intermittent disruptions due to her network bandwidth and could not capture all the questions. She asked the Committee to fill in the gaps if there were any. She briefly discussed the issue of chess, stating that SASCOC would provide more information about DSAC's involvement. She explained that chess had come before the Portfolio Committee in 2021/2022, and there was a resolution that SASCOC would mediate to see what the issues were plaguing Chess South Africa and how the AGM could be finalised. There had been much interaction with Chess South Africa at the time. DSAC worked with both SASCOC and Chess South Africa to get them to work together. She emphasised the Department's intention to avoid legal entanglements and its efforts to help the parties resolve their issues. There was a lack of governance and non-compliance by Chess South Africa and SASCOC can speak about that further.

Ms Khan mentioned that  DSAC had a detailed chronology of activities between SASCOC and the Department dating back to 2018, aimed at assisting the parties in getting their governance matters in order and avoiding the need for ministerial intervention. She underscored the importance of maintaining the sport's continuity, especially at the grassroots level. Ms Khan highlighted that the primary concern was the prioritisation of personal agendas by the sport's leadership over the interests of the sport and its young participants. She could not elaborate further as SASCOC was handling the matter.

Regarding funding and fund transfers, Ms Khan explained that DSAC works with approximately 60 national federations, and compliance is a prerequisite for funding. She noted that 60 federations complied in the previous financial year by submitting audited financial statements. For the current year, the initial deadline was 18 July 2023. DSAC extended the submission deadline to 18 August 2023 due to requests for extensions from some federations. This resulted from SASCOC making a request on behalf of federations that they had finalised their applications and needed an extension. Ms Khan mentioned that the adjudication committee is currently reviewing the applications, and it is in the process of finalising funding allocations. The transfer of funds depends on the completion of this process, including the preparation and signing of Service Level Agreements (SLAs).

Ms Khan concluded by inviting members to seek further clarification or provide any additional questions if needed.

Dr Khumalo emphasised the Department's ongoing and daily interactions with SASCOC, facilitated by a dedicated director responsible for handling federation support issues. She clarified that these interactions occur regularly, responding to a query about the last time they received feedback from SASCOC.

Dr Khumalo acknowledged the valuable advice from honourable Members, suggesting that DSAC should enhance its support functions to effectively address issues related to sports federations. She highlighted the importance of having the appropriate legislation in place to enable DSAC to carry out its responsibilities effectively.

Dr Khumalo thanked the Committee Members and expressed readiness to address any further inquiries they may have had at this point.

Responses from SASCOC

Mr Barry Hendricks, President, SASCOC, commenced by echoing the earlier statements made by the Acting DG and DDG Ms Khan, underlining the significant growth in the relationship between SASCOC and the Department. He expressed gratitude to the Minister and the Department for their collaborative efforts.

Regarding the questions posed about SASCOC:

He clarified that SASCOC plays a limited role in the National Lottery Commission (NLC) funding process. While SASCOC is required to provide letters of good standing for national federation applications, the NLC conducts its assessments independently. SASCOC does not participate in the latter.

He highlighted the recent adoption and approval of SASCOC's new constitution by the International Olympic Committee, awaiting a confirmation letter from the IPC. SASCOC is committed to the evolution of federation constitutions, particularly regarding the athletes' commissions and safeguarding policies. These aspects are new developments, and SASCOC is actively assisting in this regard.

Regarding the Netball World Cup assessment, Mr Hendricks noted that SASCOC was awaiting certain outcomes related to the Board of Directors. SASCOC plans to engage in one-on-one discussions with federations regarding their future plans, focusing on OpEx funding and athlete development for the Paris 2024 and, primarily, the Los Angeles 2028 Olympics. Although this question was not part of the agenda, SASCOC is open to presenting a report to the Committee if necessary.

He emphasised SASCOC's commitment to diversity and compliance, ensuring representation in terms of demographics, gender, and youth on boards and committees, in line with the Eminent Persons Group assessment.

The term "boardroom battles" was used to describe past internal conflicts within federations, which have improved, but some disputes persist. SASCOC has implemented a dispute resolution mechanism to address these issues. They intervene when necessary, mediating and, if required, arbitrating through an independent process.

Regarding financial statements and safeguarding policies, Mr Hendricks explained that SASCOC could not provide all the details at the moment but would follow up accordingly. Notably, suspended members could not provide the necessary documentation, including safeguarding policies. SASCOC continues to work with the five federations that remain suspended, including Chess South Africa.

The matter concerning Chess South Africa is now sub judice, with two members of the Chess South Africa executives initiating a court action against SASCOC. The International Chess Federation recognised issues within Chess South Africa and oversees a democratic election process.

SASCOC provides guidance on good governance and ensures that federations comply. A dedicated unit handles federation liaison. Safeguarding policies are a key criterion, and SASCOC is working with federations to develop and implement these policies.

Mr Hendricks acknowledged that there were outstanding questions and expressed his intention to follow up with staff members to ensure any outstanding documentation is sent to the Committee. He apologised for any oversight.

SASCOC maintains constant interaction with federations, providing support and information. It is committed to using communication as a vehicle for enhancing sports in South Africa.

Regarding ongoing legal matters, particularly with Chess South Africa, SASCOC aims to resolve disputes amicably but acknowledges the need for legal spending due to specific court actions. It can provide a written response with figures of legal fees spent.

Mr Hendricks clarified that responsibility for money allocation does not fall under SASCOC but rather DSAC.

He touched on SASCOC's concern over athlete performance and mentioned Operation Excellence (OpEx), a partnership with Bidvest, to identify and support athletes for the Paris 2024 and Los Angeles 2028 Olympic games.

He thanked Mr Mthethwa for compliments, acknowledging the hard work of the SASCOC team in turning the organisation around. This transformation has been achieved through a productive working relationship with DSAC and the Portfolio Committee on Sports, Arts, and Culture, strengthened by key appointments and a commitment to South African sport and athlete development.

Regarding the South African Football Association (SAFA) matter, Mr Hendricks stated that SASCOC maintains interaction with its federations but adheres to a policy of not interfering in matters that federations can resolve internally. Disputes are encouraged to be addressed through SASCOC's dispute mechanisms. SAFA currently holds a member in good standing status.

Concerning bridge-building with BRICS, he mentioned a positive engagement with the Saudi Arabia Olympic Committee and SASCOC's intent to collaborate with other nations, especially within BRICS+, to enhance sports development. SASCOC has already established MOUs, within Zone 6 and plans to expand these agreements to other countries that can provide meaningful assistance. With their strong sports foundations, BRICS nations offer significant potential for advancing South African sports.

The Chairperson thanked SASCOC's president and inquired if any SASCOC team members wished to contribute.

Ms Shikwambana clarified that the advertisements seen on SASCOC's website were primarily intended to support the gymnastics and boxing federations. Such help is occasionally extended to members when they seek to effectively reach a specific target audience. She also mentioned that 81 federations are compliant and have sent their safeguarding policy documents.

Closing remarks

In closing, the Chairperson extended appreciation to the Members and representatives from DSAC and SASCOC who took part in deliberations. The collaborative spirit proved during the presentation was acknowledged and commended. The Portfolio Committee expressed gratitude to DSAC and SASCOC for their commendable efforts. She echoed Mr Mhlongo’s words, emphasising that the Portfolio Committee stays committed to asking questions that help find challenges and facilitate the development of necessary solutions.

The meeting was adjourned.