BOXING SOUTH AFRICA: PRESENTATION OF THE 2013/2014 ANNUAL REPORT TO THE SELECT COMMITTEE 19 TH NOVEMBER 2014

Introduction: Leadership Boxing South Africa [BSA] is a statutory entity of the Department of Sport and Recreation and has been established in terms of the Boxing Act, Act 11 of Boxing South Africa’s main responsibility is to regulate professional boxing in South Africa. The Board of Boxing South Africa is the Accounting Authority and is appointed by and reports to the Minister of Sport and Recreation.

Introduction continues--- During the period under review the entity had a full functioning Board until November 2013 when a Member passed away and it could not quorate. The entity also had two administrative Heads, the CEO Mr. Qithi until the 20 th September 2013 and Mr. Loyiso Mtya until the 31 st March 2014 in an Acting capacity.

Introduction continues--- BSA has a close working relationship with the South African Institute for Drug Free Sport to ensure that there is no proliferation of the use of drugs in boxing. The South Africa Boxing Amateur wing is managed by SANABO, a separate and independent organization with its own constitution. BSA collaborates with SANABO with regard to the graduation of amateur boxers into professional boxers

Introduction continues--- As Regulator BSA runs its activities on the basis of legislative prescriptions mainly the Boxing Act and Regulations, The Safety at Sport and Recreational Activities Act and manages its finances in terms of the Public Finance Management Act and the Treasury Regulations

Strategic Overview: Vision and Mission BSA’s vision is to be a leading sport code in South Africa and a world class boxing authority. BSA’s mission is to administer and regulate boxing in an effective and efficient manner.

Staff Compliment During the period under review the entity had a staff compliment of eighteen [18] permanent employees. The CFO and HR Manager were later appointed and the total became twenty one [21]. The Department of Sport and Recreation had also seconded five contract workers to assist in HR, Finance and IT Sections. The fifth employee left BSA before 31 st March 2014 to join SRSA as a permanent employee.

Analysis of the Boxing Landscape During the period under review BSA conducted an analysis of the boxing landscape in the country and together with the national Department of Sport and Recreation hosted a National Boxing Indaba in September The Indaba was attended by boxing stakeholders from all nine [9] provinces.

Boxing Indaba The Indaba was a huge success and it took certain important Resolutions impacting on both the Regulation and Administration of Boxing in the country.

Overview of Boxing Activities BSA in collaboration with CATHSETA conducted life skills training of boxers in two provinces, KZN and Eastern Cape. The training took place over a three months period. BSA is looking at rolling out the same programme to other provinces.

Overview continues--- Workshops were conducted in Gauteng and Mpumalanga around the abuse of substances, Boxing Regulations and understanding of contracts. The workshops were attended by licensees and communities in the two provinces.

Overview continues--- A total of eighty four [84] boxing tournaments were sanctioned by Boxing South Africa. One Hundred and ten [110] new Boxers joined the professional Ranks. Nine Hundred and seven [907] Licensees across the Board were licensed by BSA.

Overview continues--- Amongst others, the following achievements stand out: (a) Floyd Mayweather visited South Africa and participated in boxing programs in Dube, Soweto and a Fund Raising Gala Dinner at Emperors Palace. (b) Hekkie Butler and Simphiwe Vetyeka became unified boxing champions.

Overview continues--- (c) Thabo Mchunu became the first South African to win the North American Boxing Federation Title. (d) Zolani Tete’s elimination title won the IBF 2013 Fight of the Year Award.

Programme Performance During the period under review BSA’s work was divided into three Programmes namely: (a) Programme 1: Governance and Administration. (b) Programme 2: Compliance and Enforcement. (c) Programme 3: Marketing, Branding, Communications and Events Coordination

Programme 1: Governance and Administration The Board met three [3] times instead of four [4] due to resignations of Members. The CEO only presented three [3] reports to the Board as opposed to four [4] due to the fact that the Board could not quorate. Under the Sub-programme Stakeholder mobilization eight [8] mobilization events were achieved which is four [4] more than the target and this was due to positive spin-offs from National Boxing Indaba.

Programme 2: Compliance and Enforcement It comprises of three [3] sub-programmes namely: Licensing, Sanctioning and Ratings; Licensee Training and Development and Regulations Compliance and Enforcement. Nine Hundred and Seven [907] people were licensed in the various categories of Licenses; boxers, promoters etc.

Programme 2: Compliance and Enforcement Number of Mobilization Events held were twelve [12] in number. Eighty Four [84] Tournaments were sanctioned. Thirty Nine [39] Boxers were trained in life skills.

Programme 2: Compliance and Enforcement Twelve [12] Gyms were inspected for compliance with Regulations.

Programme 3: Marketing, Branding, Communication and Events Coordination This Programme comprise of three [3] sub- programmes. Four [4] Major Boxing Events were identified and supported. Lobbying for Television Rights: No broadcasting was secured with the SABC.

Governance The entity had a fully functional Board until November 2013 when a Board member passed away. The entity had an Audit Committee which performed its functions. The Entity had Sanctioning and Ratings Committees.

Governance continues--- Internal Audit from the Department of Sport and Recreation performs the Internal Audit Function at BSA. The entity has a Fraud Prevention Plan.

Human Resources The entity had employed eighteen [18] employees on permanent basis. A new Chief Financial Officer was appointed to manage the Finances of BSA.

Comments on Financial Statements Revenue: – The revenue for the year is R10.4 million made up of government grant, sanctioning and license fees. – Revenue increased by about R1.6 million mainly due to additional allocation received from SRSA and Cathsetta. – It must be noted that there was no revenue received from provincial departments compared to R0.829 million in – Boxing SA realized an operating surplus of R for the year under review which translated into a surplus of R for the year

Comments on Financial Statements cont Expenses: – Boxing SA incurred a total of R million for the year mainly on General expenses and employee costs. General Expenses: – General expenses decreased by about R0.550 million due to no expenditure on provincial boxers development. Employee Costs: – Employee costs increased by R1.350 million because of annual salary adjustments and addition to staff : the Chief Financial Officer and HR Manager.

Financial Performance Cont

Financial Performance

Summary of Audit Report The Auditor General has given the entity an unqualified audit opinion. However there are challenges in particular that the entity had incurred irregular expenditure of R and Fruitless and wasteful Expenditure in the amount of R The major cause is that there was no Supply Chain Management Unit. This has mainly contributed to the irregular expenditure.

Challenges Inadequate Funding. Lack of Fully Fledged Provincial Structures. Lack of Inspectors to evaluate boxing facilities and tournaments. Lack of sponsorship of BSA Activities

Challenges Continue…. Poor capacity of staff. Need to review licensing Processes and Fees. Lack of Broadcasting of Boxing by the SABC.

Remedies: Action Plans Review Strategic Plan. Review the appointments of Provincial Managers. Setting up IT Systems and Infrastructure

Remedies Continue--- Setting up HR systems. Setting up Procurement Systems. Review Finance Department and its functions. Review Operations Unit and its functions. Strengthen licensing processes.

Remedies Continue--- Setting up sub-committees ( Rating, Sanctioning, DC, Arbitration Tribunal, Medical Committee, Associations of Licensees). Strengthening relationships with International Boxing Bodies.

Remedies Continue--- Finance Directorate at the Department of Sport and Recreation provides guidance on the management of Funds and the establishment of Procurement Systems. The Department has seconded staff to assist in the Administration of BSA.

The End Thank You.