JOHANNESBURG - Welsh Gwaza’s suspension from Cricket South Africa will deal a significant blow to the hold he seemingly had over the organisation in the last 18 months.
Gwaza was never at the forefront in the manner of a CEO, but it became increasingly clear that he had enormous influence over CSA’s administrators, and some areas in which he found himself stretched well beyond the operations of a company secretary. Broadly speaking the company secretary ensures compliance with statutory and regulatory requirements.
Cricket SA certainly found itself - and in fact continues to find itself - in a number of messy legal proceedings, some of which likely could have been avoided. Whether Gwaza’s disciplinary hearing, set for December 14, will delve into the reasons why remains to be seen.
What cannot be denied is his massive influence throughout the organisation. Gwaza was suspended from his position on Tuesday. It is among the most significant steps taken by the interim board, chaired by former constitutional court justice Zak Yacoob.
Gwaza’s influence can be seen by the fact that he was a permanent invitee to virtually every committee at CSA, from finance, to social and ethics and even the cricket pipeline committee. The fact that CSA dragged out its engagements with Sports Minister Nathi Mthethwa and Sascoc, citing interpretations of the National Sports and Recreation Act, would support notions of how influential Gwaza was at the organisation.
From the perspective of the kind of information a company secretary should provide a Board of Directors, Gwaza’s impact is most keenly felt in the issue regarding CSA’s exercising of its step-in rights at the Western Province Cricket Association regarding the construction work taking place at Newlands. Had CSA’s then board of directors been kept abreast of all the information that was being provided to CSA’s management - including former CEO Thabang Moroe and Gwaza - the subsequent court case, which CSA lost with costs, could have been avoided. The Fundudzi forensic report also points a finger at Gwaza over the commercial and broadcast deal CSA entered into with Global Sports Commerce regarding the Mzansi Super League in 2018.
Cricket SA had been advised to compile a due diligence report about GSC and while Fundudzi auditors specifically finger Moroe and Cricket SA’s former COO Nassei Appiah for not compiling a due diligence report, even though they’d said such due diligence was done, they also state that Gwaza should have provided the Board with proper information. “Moroe, Appiah and Gwaza had various opportunities to inform FinCom (Finance Committee) and the Board that the due diligence on GSC was not conducted, however, they continued to promise FinCom and Board that the due diligence would be presented,” the auditors’ report reads.
Gwaza will continue to be paid his full salary for the duration of his suspension.
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