Cricket World Cup 2003 Committee Plans and Programmes: briefing

SPORT AND RECREATION PORTFOLIO COMMITTEE
23 October 2001
CRICKET WORLD CUP 2003 COMMITTEE PLANS AND PROGRAMS: BRIEFING

Chairperson: Ms N Bhengu

Documents handed out:
2003 ICC Cricket World Cup Supplier Appointments (See Appendix 1)
2003 ICC Cricket World Cup Black empowerment policies adopted in the appointment of suppliers (See Appendix 2)
2003 World Cup Policy Committee Mission Statement (Appendix 3)

SUMMARY
United Cricket Board presented a report on its mission statement, world cup supplier appointments and black empowerment policies adopted in the appointment of suppliers.

The Committee raised their concern on the quality of cricket facilities, especially in disadvantaged communities. The Committee acknowledged that there is development of cricket at the provincial and local levels but there are very few blacks involved in the national team. The United Cricket Board promised to look at the problem before the commencement of the Cricket World Cup.

The Cricket World Cup committee agreed that there is still a need to market the Cricket World Cup locally and internationally so that it is not only a sporting event, but also a national event.

MINUTES
Presentation by Prof. Jakes Gerwel
Professor Jakes Gerwel is a chairperson of the policy committee in the  2003 Cricket World Cup (CWC) and a non-cricket board member. He told the Committee that the United Cricket Board (UCB) has a full time Chief Executive Officer and a World Cup policy committee consisting of officials from the UCB as well as non-cricket members. This is the committee that is chaired by Prof. Gerwel. This committee is to lay down guidelines and principles for the World Cup, oversee the implementation of those guidelines and principles and report to the UCB.

CWC 2003 would be responsible for the organizing of the event and to ensure that the ownership of the event is spread amongst all South Africans. He said the Cricket World Cup is not regarded  as a cricket event only, but it is also a national event that is capable of unifying South Africans of different backgrounds. CWC 2003 will contribute significantly to the lasting enhancement of the image of South Africa abroad as a commercial, sporting and tourism destination.

Presentation by Dr Ali Bacher
Dr Bacher told the Committee that there will be 46 days of cricket and the matches will be played in different venues in South Africa. Other matches will be played in Zimbabwe (six matches) and Kenya (two matches) making a total of 54 matches. It is the responsibility of the UCB to market cricket in the continent. South African Tourism has estimated that 25 000 visitors from abroad are expected during the tournament. Dr Bacher, however, said they are expecting at least 50 000 visitors. They met all the Premiers of the provinces where the tournaments will be held to discuss strategies that would make this event a success. They also met the Governor of the Reserve Bank who promised to print some coins with the 2003 CWC logo in it as a means of marketing the event. He said their intention is that this event should make South Africans very proud.

For more details in the presentations please refer to attached document

Discussion
Mr C Frolick (UDM) asked if the 2003 CWC has looked at the concerns relating to the quality of cricket play grounds.  Has anything been done to address the problem?

Dr Bacher replied that he has investigated the issue of poor standard of grounds. A sum of R20 million that would be made available for the upgrading of grounds. Regrettably not all the provinces will benefit from this money. They have actually identified nine venues from disadvantaged communities that could benefit from this money. Voluntary services would also be offered as part of the 2003 World Cup Initiative to these communities.

Mr Frolick asked how far is the country in terms of holding a world cricket event in disadvantaged communities.

Mr Percy Sonn from the United Cricket Board replied that it would take time before the grounds are upgraded. It should not be only cricket facilities that are changed, the infrastructure around the ground should change as well. They would like people to take ownership of the facilities in their localities once these are installed.

Prof. Gerwel said facilities at club level should be upgraded first if the UCB is to develop cricket in a particular area. There are lot of kids around the country who show interest in cricket.

Mr D Lee (DP) asked how are the nine venues to be upgrade with the facilities that have been mentioned.

Mr Majola the Chief Executive Officer of the United Cricket Board said they would be working with all the provinces including the South African Breweries who promised to sponsor them in this project. The UCB would be responsibility for installing these facilities. Mr Sonn added that the community should also ensure that these facilities are not vandalised.

Mr R Pieterse (ANC) said his concern is that some of the games will be played outside the country and it would be the responsibility of the South African cricket board to ensure that the cricket venues for the world cup in Zimbabwe and Kenya are up to standard.  If they are not up to standard that could impact negatively to South Africa. Secondly he asked how the CWC is going to ensure that empowerment occurs in these two countries, are they going to implement empowerment policies of South Africa?

Dr Bacher replied that in Zimbabwe, both the Bulawayo and Harare venues are being upgraded at the moment.  By 2003 the grounds should be up to world standards and he assured the Committee that the Zimbabweans would not let them down.

Dr Bacher said both Zimbabwe and Kenya would effect empowerment policies as stipulated in  the appointment of suppliers document and the two countries have already made that undertaking. He added that they would be checking each contractor every three months to see if they are fulfilling their promises of black empowerment.

Mr H Chauke (ANC) enquired in terms of broadcasting, which games the South African Broadcasting Corporation (SABC) will cover.

Dr Bacher replied that in terms of the contract SABC has acquired only radio broadcasting rights. Television broadcasting rights have been sold to Supersport. SABC will only televise matches involving South Africa.

Mr Chauke asked if  the CWC 2003 is going to improve the awareness campaign about the World Cup because many people are not aware that there is a world cup in cricket coming up in 2003. How are they going to improve this awareness?

Dr Bacher said they are waiting for the current cricket series to be complete before they could embark on an awareness campaign, but said he would not expand on that at this stage because they have not yet launched the CWC 2003 campaign. TV exposure of the tournament will definitely promote awareness.

Mr E Ferreira (IFP) asked about the South African representative team for the world cup. Even though there are many black players coming from the provincial ranks, only two of them are in the national team, why is this so?  Despite this, cricket seems more involved in development than rugby.  Presently the two black players are injured, what would happen if the same thing occurs in future? Does the UCB have a programme to mentor these development players so that they become part of the national team?

Mr Majola said in the next season there will be a regional tour to look at the potential of black players in the provinces. There is a suggestion that for the fifteen players that will take part in the world cup, at least five should be black. He will also meet with provincial coaches to discuss the issue of quota system properly so that the problem is addressed as quickly as possible.

Mr Chauke said he is concerned about the broadcasting of the tournament on a pay channel as this will mean that a majority of South Africans, especially those from disadvantaged communities will not be able to watch it. This would be a contrast to the mission statement of CWC, that of popularising the sport to the people of South Africa.

Mr P Swart (DP) added that they were told the SABC and Supersport would be teaming up for the 2003 cricket world cup, what happened to that arrangement?

Dr Bacher said on several occasions they have forcefully suggested that the matches should be shown on SABC. However, there are some contractual problems that might hinder this and that would be beyond their control. Otherwise their intention is that SABC should broadcast all the matches live.

Mr Frolick asked in terms of access to the stadiums, how much will be the admission fees to the playgrounds, will the fees be affordable to the rest of the South African population?

Dr Bacher replied that people would be encouraged to buy tickets for all the games played in a particular venue for the duration of the tournament. They are trying to  avoid a situation where people would buy tickets for South African matches only. The prices would be made as affordable as possible because the intention is to bring cricket closer to the people.

In conclusion theChairperson said they have noted that the CWC 2003 are trying their best to make this event a success. It is important that the CWC demonstrates how this will benefit South Africa even after the world cup. She promised them that they will get the support and co-operation of Parliament whenever possible. She expressed her concern with the state of facilities in the provinces and that community ownership of facilities is still lacking.

The meeting was adjourned

Appendix 1
2003 ICC CRICKET WORLD CUP
SUPPLIER APPOINTMENTS

A.         PROCESS

B.         APPOINTMENTS

1.         International Tour Operator
Won by the following Consortium:
a)         UK based Gullinjet Sports International, who will own one-third of the shares.
b)         Durban based Edusport Travel who will also own on~third of the shares.
c)         An empowerment partner, Autshumatu Investments, who will also own one-third of the shares. They are already involved in many aspects of tourism. They own the ferry rights for Robben Island and operate a travel company, Travel Junction in Cape Town. Chairperson is Sfiso Buthezi, an ex-political prisoner, who is currently the CEO of the National Gaming Board.

2.         Wine Supplier
Bellingham is the official Wine Supplier to the 2003 ICC Cricket World Cup.
a)         They will launch range of souvenir/collectors wines and ports and will pay us a 10% royalty on the published wholesale price of these packs. 25% of these royalties will go to cricket development.
b)         The national distribution of their products has been contracted to individual black entrepreneurs where Bellingham arrange the finance and stand surety for the purchase of these trucks and the individual earns a delivery fee per case.
c)         Finance the university fees for the education of an aspiring black cricket writer at the Faculty for Journalism at Rhodes University.

3.         Travel Agents
Rennies Travel and Connex Travel are the official Travel Agents for the 2003 ICC Cricket World Cup.
a)25% of the equity of Rennies Travel is now owned by a black partner, the Women's Development Bank.
b)         Rennies Travel owns 49% of a BEE foreign exchange provider, Master Currency, who will handle all foreign exchange requirements for the international teams.
c)         Rennies Travel employs just over 50% black employees and 77% of the work force is women.
d)         Connex Travel is a genuine BEE organisation that is commercially partnered with Rennies Travel. 31% of Connex Travel is owned by a Black Empowerment Consortium, Shumi Investments, 10% is allocated to the NEF, 10% is allocated to an Employees Share Ownership Scheme and 49% is held by Rennies Travel.
e)         With regard to the competing teams' and officials' travel, a dedicated travel unit will be based at Summer Place and black personnel will be in excess of 50%.
f)          Rennies Travel and Connex Travel will jointly assume responsibility for marketing the 2003 ICC Cricket World Cup for travelling South African suppliers, corporate and public supporters.
g)         Rennies Travel and Connex Travel will sponsor the travel arrangements of twenty talented young black cricketers, as identified by the UCB, to attend selected 2003 ICC Cricket World Cup matches.

4.         Hotel Group
Southern Sun is the official Hotel Group.
a)         Six months prior to the 2003 ICC Cricket World Cup, Southern Sun will start running promotions within Southern Sun service outlets and outsourced restaurants.
b)         Articles relating to cricket and the 2003 ICC Cricket World Cup will appear in their official magazine 'Equinox' which is put into every Southern Sun bedroom (13 000 rooms) and their frequent guest loyalty programme magazine 'Update' which is mailed to 86 000 members quarterly.
c)         Their website will carry information regarding the 2003 ICC Cricket World Cup.
d)         Southern Sun will assist staff with tickets, transportation and time off from work in order to attend World Cup matches in their area.
e)         An official hotel liaison officers' training programme will be held in conjunction with the 2003 ICC Cricket World Cup. All hotel liaison officers will be black.
f)          Southern Sun will identify and utilise the services of black businesses for the supply of:
i)          Gifts for VI P's and the competing teams.
i)          Official welcome of teams and supporter groups to hotels, eg. dancers, singers.
iii)         Production and design of collateral - to black printers.
g)         Southern Sun will also employ thirty extra black Hotel School students during the period of the 2003 ICC Cricket World Cup.
h)         Southern Sun will contract identified and accredited black emerging service providers, eg. tour operators for day tours/taxi associations for the duration of the tournament with the opportunity to extend contracts in the long term.
i)          Employment Equity Plan:
i)          Blacks at senior management level, ie. hotel general manager level
            1999     4          6.3%
            2003     14         23%
ii)          Blacks at other management level
            1999     185       34.5%
            2003     265       47.4%
j)          Southern Sun has also offered to profile South African shabeen owners through an Expo at the Sandton Convention Centre during the 2003 ICC Cricket World Cup.
k)         Southern Sun will provide R.75 million worth of free accommodation, pre-event and for a period of four months after the event, but not during the actual event
I)          Southern Sun will make available a cash donation of R50 000 for cricket development.

5.         Emergency Medical Services (EMS)
A.         Joint Venture EMS Investment Consortium (EMSIC)
The share capital of EMSIC will be held by Netcare 911 (50%) and 50% by empowerment ambulance joint venture partners representative of the equity held by black paramedic entrepreneurs in EMSIC.

Two directors from Netcare 911 and two from the joint venture partners will be appointed to the EMSIC Board and the rights and obligations of the shareholders will be regulated in terms of a simple Shareholders' Agreement.

B.         Afrox Healthcare Limited
Afrox Healthcare Limited will, in its medical service delivery, give preference to using the services of black economic empowerment businesses.

Furthermore, at least 60% of the envisaged marketing spend of R2 million plus will go to black owned and managed businesses.

6.         Official Functions, Dinners
For November 1 Launch in Soweto
            a)         Remba Connections
                        Mbali Thabethe
                        Rebs Mogoba    40%
            b)         Event Company
                        Karen Ashwin    40%
            c)         DSI : Brian van Rooyen 20%

Event Management Company
            DSI       Event Company
            (51%)       (49%)

7.         Installation of Subsurface Drainage
The contract for the installation of subsurface drainage to 11 cricket venues for the 2003 ICC Cricket World Cup has been awarded to Shelton Drainage Solutions SA cc onty on the basis that a new Pty Limited company be formed with 50% of the shareholding be owned by previously disadvantaged individuals and who are currently employees of Shelton Drainage Solutions.

In the new Pty Limited company, there will be six equal shareholders, three of whom will be black.

Thulani Nzimakwe approved the establishment of the new Pry Limited company.

8.         Publications Consortium
The following Consortium will produce all official publications during the 2003 ICC Cricket World Cup, eg. match programmes, brochures, diaries, calendars, posters etc.

M&G
Penguin Books
Naspers
The media division of NAIL

I have previously mentioned the importance of having the Sowetan/Sun day World support cricket for the very first time.

9.         Ceremonies for Africa -Penny Jones and husband/Raylene Plaaitjies/ Matthews Mokone
65% of budget will end up in black hands
            75%      ~ Contractors of budget/Suppliers
1000 Black/JV

10.        Hunt Lascaris I Inroads Multimedia

11.        Ticketing System
 As you are aware, Dimension Data are compiling our ticketing system. They have engaged the following companies for the 2003 ICC Cricket World Cup:
a)         TelICis Business Solutions:  Saadiq Matthews (MD) They manage and operate the call centre.
b)         Choice Technologies:     Semela Tseka (MD)
They will supply all the hardware for the ticketing system as well as the networking requirements.
Choice Technologies meets the definition of a black empowerment company whilst TelICis is effectively 43.75% owned by PDI's.
Approximately 33% of the total project spend will go to PDI's.

12.        Organising Committee
At present there are thirteen staff members: 6 x white and 7 x black.
Imminent is the appointment of a black Marketing Director.
We are also currently speaking to the Independent Newspaper Group with a view to them
seconding one of their senior writers to us for the 2003 ICC Cricket World Cup.

DR A BACHER
16 October 2001

Appendix 2
2003 ICC CRICKET WORLD CUP
BLACK EMPOWERMENT POLICIES ADOPTED IN THE
APPOINTMENT OF SUPPLIERS

1.         Wherever appropriate, it is a requirement that the residual profit arising from the appointment of any supplier should be shared in the ratio of 60% to a minimum of 40% as between the conventional supplier on the one hand and the empowerment partner on the other hand. In certain cases where there is no empowerment partner engaged in the sphere of activity where a supplier is appointed, other requirements have been stipulated which would be binding on the appointed supplier such as, for example, the obligation to contribute money towards the training of previously disadvantaged individuals ("PDI's").

2.         It is a requirement that the appointed supplier will undertake to employ PDI's in the performance of the contract. This is designed to ensure that PDI's will be involved in the performance of the contracts over and above the sharing of the economic profit.

3.         It is a requirement that not only will PDI's be employed in the performance of the contract but that in addition, there will be a structured policy for the transferring of skills to the PDI's who are involved in the performance of the contract.

4.         There will be a structured approach so as to ensure that the objectives of employing PDI's and transferring skills to PDI's results in a situation that in future events of this nature in South Africa, there will be empowerment suppliers who will be capable of being appointed. This is the "legacy" approach.

5.         Provision will be inserted in the contracts pursuant to which suppliers are appointed so as to ensure adequate sanctions against such suppliers who breach any of the aforegoing provisions. In particular, it may not be appropriate simply to cancel the contract in the event of a breach of any of the aforegoing requirements as we may be left in a predicament of not having a supplier at the last moment. Thus, in addition to retaining the right to cancel, we would also have stipulated penalties.

6.         The aforegoing represents a broad precise of the policies that have been and are being adopted in the appointment of suppliers by the 2003 ICC Cricket World Cup Policy Committee.

DR A BACHER
13 October 2001

Appendix 3
2003 WORLD CUP POLICY COMMITTEE
MISSION STATEMENT

1.         We aim to unite all the peoples of the country behind the event, by following it, supporting it and participating in it.

2.         We will use the opportunity to raise the profile of cricket in South Africa and throughout Africa and to develop the sport on the continent like never before.

3.         We will make the most of a unique opportunity to make money for South African cricket to ensure the sport's financial viability and security in the future.

4.         It is our intention to have the support and involvement of the Government at all levels
- local, provincial and national.

5.         We aim to give added value to the global sponsors and suppliers and local suppliers and ensure they have a good commercial return on their investment.

6.         The management team that organises the competition must reflect the demographics of South Africa.

7.         South African companies that are given commercial opportunities through the World Cup must have a satisfactory black empowerment element.

8.         All grounds must host an acceptable number of black spectators.

9.         We intend to contribute significantly to the lasting enhancement of the image of South Africa abroad as a commercial, sporting and tourism destination.

10.        We will fulfil the objectives of the International Cricket Council in awarding the 2003 World Cup to South Africa.

11.        The 2003 Cricket World Cup is also about:

1.         Developing people
2.         Spreading ownership of the World Cup.
3.         The transfer of skills.
4.         Broadening the cricket market (blacks, youth, women and girls).
5.         Facilitating a mentoring process for black South Africans₁ eg. mentoring black cricket writers.

12.        We want all South Africans to be proud of the event.

B.         Measuring the success of our desire to make the 2003 Cricket World Cup a genuinely representative and empowering South African event, six areas have been identified:

1.         The composition of our National Team and Squad.

2.         The crowds present at our matches.

3.         The commercial participation and commercial benefits at the grounds.

4.         The empowerment dimensions of the companies contracted by the UCB, including their procurement and subcontracting policies and practices.

5.         The composition of our Committees and staff.

6.         The permanent legacy left after the 2003 Cricket World Cup.

Dr A Bacher