PURPOSE

To brief the committee on the Annual Report of Boxing South Africa

for the period commencing 1 April 2016 and ending 31 March 2017

VISION To create a world class regulatory body for boxing in a united and safe environment MISSION To enhance the capacity of all stakeholders to improve the quality, passion, and popularity of professional boxing in South Africa and internationally

STRUCTURE

1) PART A: GENERAL INFORMATION

2) PART B: PERFORMANCE INFORMATION

3) PART C : GOVERNANCE

4) PART D: FINANCIAL INFORMATION

VISION To create a world class regulatory body for boxing in a united and safe environment MISSION To enhance the capacity of all stakeholders to improve the quality, passion, and popularity of professional boxing in South Africa and internationally

PART A

GENERAL INFORMATION

FOREWORD

• 2016/17 marked the third and final year of the term of office of the current BSA Board.

• The Board was appointed 18 May 2014 and at that time, BSA was faced by a number of huge

challenges, which among others included:

Weak internal capacity and rampant labour relations disputes (This resulted in the termination of services of

the CEO, the CFO, the COO (Director: Operations), Manager : Finance, Manager: HR

Frequent legal disputes and litigations between BSA and its licensees , characterized by a general culture of

non-compliance with the SA Boxing Act and Boxing Regulations.

Declining broadcast coverage of boxing in the mainstream media, resulting in many promoters being

sidelined as the wrestle for the broadcast rights escalated.

Declining activity and dominance of South African boxers in the rankings of prominent International World

Bodies (WBA, WBC, WBO & IBF)

Inconsistent publication of South African Ratings and an unreliable tournament sanction systems

FOREWORD … cont

• 2016/2017 being the third & final year of the current Board was therefore a culmination of all efforts to

bring to fruition, the various interventions put in place in the first and second year.

Internal capacity has been restored with a stable administrative structure headed by the CEO and various

functional Board Committees (Audit Committee, Ratings Committee, Sanction Committee, etc )

The frequency of legal disputes between BSA and its licensees have been significantly reduced and no new

matters went to Court during period under review.

A framework for boxing broadcast has been agreed to with the national broadcaster and even though there are

still some teething problems, this is now being rolled out.

South African boxers are beginning to once more campaign in the major boxing world bodies and during period

under review South Africa produced a WBO World Champion (Zolani Tete), but unfortunately in its bid to win the

IBF World Title in September 2016 ( Hekkie Budler)

In 2016/17 BSA added a new program to its Flagship programs when it reintroduced the Boxing Awards, alongside

the already existing (1) Women in Boxing Program and (2) Licensee Training.

STRATEGIC OVERVIEW

VISION: To be a lead sporting code in South Africa and a world class boxing authority

MISSION: The effective and efficient administration and regulation of professional boxing in

South Africa

VALUES: Professionalism, Leadership, Accountability, Diversity

Boxing Rules and

Regulations

South African

Boxing Act

BSA Policies

and Procedures

Safety at Sports and

Recreational Act

Labour Relations Act

Public Finance

Management Act

Promotion of Access to

Information Act

Preferential Procurement

Policy Framework

Act

Skills Develop. Act

Basic Conditions of employment

Act

LEGISLATIVE & Other Mandates

The Consolidated Mandate of BSA

Key Mandate Areas The Specific Areas

Boxing development in

South Africa

To facilitate the establishment and effective coordination of all boxing structures (associations of

licensees).

To provide administrative support to all the associations and practitioners in the boxing fraternity

of South Africa.

To promote and market the activities of boxing as a leading brand.

To champion the development of boxing infrastructure for recreational and competitiveness

purposes.

To facilitate and coordinate the skills development programmes amongst the licensees within the

boxing fraternity.

Being a Regulatory Body

for professional boxing in

South Africa

To develop appropriate norms and standards for the effective management and administration of

professional boxing in furtherance of the legislation.

To ensure the compliance and enforcement of the norms and standards by all the individual

licensees and their associations.

To establish effective dispute resolution mechanisms and to mitigate all disputes that may arise

amongst the licensees within the boxing fraternity.

To develop the skills development framework and foster partnerships with relevant stakeholders

for its realisation and implementation.

To ensure that the administration and management of boxing in South Africa is based on good

governance and is run in the best interests of boxers and the general public.

• BSA Board was appointed by the Minister on 18 May 2014.

• In May 2017, the Minister extended the term of Office until end-August and again until end-November 2017.

• The recruitment process for the new Board is currently underway and led by the Minister.

• 80% of BSA’s approved and funded posts are currently filled.

• In 2016, BSA recruited the CFO (March 2016), the CEO (June 2016) and the COO/ Director: Operations (January 2017 )

• Currently there are only two vacancies in the positions of Receptionist and Messenger/ Driver.

PROVINCIAL MANAGEMENT

VISION

To create a world class regulatory body for boxing in a united and safe environment

Pakamile Jacobs

Micky Klaas

Les Williams

Archie Nyingwa

Mtunzi Mapitiza

Solly Matsomela

Province

BSA Licensees

EC 436

FS 36

GP 366

KZN 139

LP 46

MP 31

NC 12

NW 29

WC 112

TOTAL 1198

PART B

PERFORMANCE INFORMATION

SITUATIONAL ANALYSIS

• In its Strategic Plan of August 2016, the Board reviewed the Annual Performance Plan and

developed the 2017/2018 Annual Performance Plan. The Board further outlined the following

priorities for the 2017/18 financial year:

A healthy balance between the Core Function and Support Service functions need to be

maintained

BSA Legal Capacity need to be strengthened through increased support towards the Legal

Commission.

Finalization and implementation of Revenue generation strategy need prioritized

BSA Administrative capacity need to be strengthened, particularly the policy environment,

internal audit capacity & BSA Office space

BSA licensees need to be supported more, particularly with regard to training and support for

them to establish licensee’s associations.

ORGANISATIONAL ENVIRONMENT

License Renewals for 2016/2017

• A well administered and stable regulator is only as good as a sector it regulates.

• In 2016/17 BSA had 1049 licensees with more than 573 being boxers specifically, and 91 being women across

different categories of licensees. VISION To create a world class regulatory body for boxing in a united and safe environment

Categories Males Females

Boxers 573 46

Managers 84 07

Trainers 71 02

Seconds 91 02

Matchmakers 03 0

Ring Announcers 09 02

Ring Officials 62 14

Promoters 65 18

TOTAL 958 91

ORGANISATIONAL ENVIRONMENT

Sanctioning of Tournaments in 2016/2017

In 2015/2016 a total of 89 tournaments were sanctioned

In 2016/2017 a total number of 75 tournaments have been sanctioned, signaling a decline.

This is mainly due to a major shift towards emphasis on compliance as well reduced government assistance. VISION To create a world class regulatory body for boxing in a united and safe environment

F/ YEAR EC FS GP KZN LP MP NC NW WC TOTAL

2015/16 30 2 28 6 4 1 1 1 10 89

2016/17 25 2 26 9 3 0 0 1 9 75

PERFORMANCE OVERVIEW

The period at a Glance

• Purse money: - We ensured that we no longer have any boxer who is still owed purse money from tournaments

sanctioned by BSA by paying R1,3m to boxers and officials from the two tournaments hosted by Mamali and

Sijuta Promotions.

• Disciplinary processes: - We concluded disciplinary process against Sijuta Promotions in respect of the

outstanding purse money from the tournament they held in April 2016, resulting in the suspension of this

promotion company and further actions to legally recover the money owed.

• Support to Associations: - We held bilateral engagements with the full Executive Committee of the Eastern Cape

Promoters Association, following escalation of their grievances to the Portfolio Committee as part of our

continued support to association of licensees.

• Ring Officials Seminar: - We held the first ever seminar for all BSA ring officials since 2004. This took place at

Elandsfontein in Gauteng on 10-11 November 2016 and was attended by 89 ring officials from all over the

country.

PERFORMANCE OVERVIEW … Cont

The period at a Glance

• SA Boxing Awards: - We hosted a successful sixth edition of the South African Boxing Awards that took place at

Inkosi Albert Luthuli International Convention Centre, in Durban on 27 January 2017.

• Women in Boxing:- We appointed four female Promoters to host four tournaments as part of Women in Boxing

program where at least one national title and one provincial title per tournament took place.

• Internal audit capacity: - We appointed an appropriate and duly capacitated audit firm to serve as BSA internal

auditor following the withdrawal of SRSA internal audit services to BSA.

• Debt collection:- We commenced with civil claims against two promoters in respect of the purse money they still

owe as well as another one against PBL in respect of the prize money they owe BSA licensees.

• New office premises:- We concluded a procurement exercise for lease of new office premises for BSA following

SRSA’s request for BSA to secure own office space after almost one year of rent-free tenancy at SRSA offices.

PERFORMANCE OVERVIEW … Cont 2

The period at a Glance

Looking back at 2016/2017, there are however still some challenges that need to be addressed.

• Need to improve communications between BSA and its licensees, particularly Boxers, Managers and Promoters.

• Need to continue in a gradual but consistent manner, to enforce compliance and overcome any inertia or

resistance.

• Need to intensify boxing training programs, starting with the development of boxing specific training materials

and the inclusion of assessments criteria in the licensee application process.

DASHBOARD: OVERALL PERFORMANCE

• In terms of its Annual Performance Plan, Boxing SA has twenty-two performance indicators located across its

three programme areas. During the period under review the organization’s non-financial performance against

pre-determined objectives can therefore be said to be at 55%, i.e. the organization was able to meet twelve out of

twenty-two indicators.

• Most of the challenges facing the organization with regard to non-financial performance have now been

addressed but were mainly with regard to:

o The absence of a proper technical indicator description document, standard operating procedure systems as

well as the performance monitoring & evaluation framework.

o The internal audit capacity could only be brought on board in the last quarter due to challenges with

resources, followed by a protracted procurement process.

o The Chief Operations Officer (COO) was only recruited in the third quarter of the previous quarter and

commence duty in the last quarter

PROGRAM 1: Governance & Administration

• Even though a lot of work has been done under this programme, this hasn’t necessarily culminated directly into

fulfillment of the performance indicators in this programme.

• The bulk of the work that has been done during this year will however enable improvement attainment in the

following year.

• 67% of the indicators in this programme has been achieved, i.e. six out of the nine targets.

Indicators Achieved Not

achieved

Remedial Actions

9 6 3 Number of policies reviewed/developed: Only 26 policies/procedures were reviewed

instead of 30. In the next financial year this target has been amended as it is need

based.

Stakeholder Engagement Framework developed and implemented: Finalize the draft

document, adopt and implement in the 2017/2018 financial year.

Board Resolutions Implemented: Develop a Board Resolution register to track progress

PROGRAM 2: Boxing development

• This programme area is the most important one in the life of BSA since it has to do with Boxing Development.

• This is the programme area focusing mainly directly at our licensees.

• 44% of the indicators in this programme have been achieved, i.e. four out of the nine targets.

Indicators Achieved Not achieved

Remedial Actions

9 4 5 Number of Licensees trained and developed: Various workshops for the various

licensees have been planned and budgeted for, for the next financial year.

Number of Capacity Building Sessions: Various workshops for the various licensees have

been planned and budgeted for, for the next financial year.

Number of Site Inspections Conducted: Ensure that all compliance documents are signed

and meet the minimum requirements as per BSA operational guidelines.

Number of Compliance Reports: Ensure that all compliance documents are signed and

meet the minimum requirements as per BSA operational guidelines.

Number of tournaments sanctioned: The target has been reviewed for the next financial

year as it is purely dependent and driven by Promoters for its achievement.

PROGRAM 3: Boxing Promotion

• A lot of work has gone into this programme area and this included among others, putting together strategic

documents for approval by the Board in respect of Marketing and Revenue collection.

• These could however not be finalized and adopted during the period under review.

• 50 % of the indicators in this programme have been achieved, i.e. two out of four targets.

Indicators Not achieved

Achieved Remedial actions

4 2 2 Revenue generation strategy: Finalize the draft document, adopt and implement in

the 2017/2018 financial year

Communications & Marketing strategy: Finalize the draft document, adopt and

implement in the 2017/2018 financial year

PART C

GOVERNANCE

BSA Board governance environment

.

(24) National Coverage

(25)Ratings and Sanctioning

(26)Association’s assistance

(23)Women in Boxing

(22)Licensee Training & Development

(22)Compliance enforcement

(29)Events Coordination

(30) Revenue Generations

(28)Boxing Sponsorship

(27) Marketing and Communications (18)Strengthened Governance & Oversight

(19) Improved Administrative Capacity

(21) Stakeholder Engagement

(20)Partnership Management

(14)Management

Internal Audit

(16) Boxing Development (15) Governance & Admin (17) Boxing Promotion

(2) CEO

(10) Tribunal (8) Sanction (9) Ratings (7) Medical (11) Disciplinary (13) Licensees’ Associations (12)Gender

(4) HR & Finance (5) Audit

(1) Board

PART D

FINANCIAL INFORMATION

REVENUE COLLECTION

2015/2016 2016/2017

Programme 1: Governance and Administration

Actual Achievement 2015/2016

Actual Expenditure

(Over)/ Under Expenditure

Budget Actual Expenditure

(Over)/ Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Sanctioning fees 1 803 2 435 (632) 1 893 1 542 351

Licence fees 491 587 (96) 516 619 (103)

Fines Penalties and Forfeit

23 78 (52) 24 45 (21)

Interest 40 92 (52) 42 135 (93)

Sport & Recreation:

Grant

10 468 15 025 (4 557) 11 033 15 963 (4 930)

Other Income - 5 284 (5 284) - 3 533 (3 533)

Total 12 825 23 501 (10 621) 13 508 21 737 (8 329)

REVENUE COLLECTION

• The total sanctioning fees were under collected, this is due to long outstanding debtors in the books of BSA to the

extent that debtors have been impaired to reflect the challenges of collection of sanctioning fees.

• The legal entanglement resulting from disputes by association of promoters in the eastern cape also affected

collectability of outstanding amounts. Licensees fees received were over the expected number of applications.

• There was also over collection of money collected from penalties and fines levied on offenses committed by

licensees.

• On behalf of BSA has to be recognized as actual revenue from non-exchange and is disclosed as part the total

additional amount of Additional financial support from the SRSA for payment of legal expenses paid of related

parties notes in the Annual Financial Statements

• Other income: Sponsorship -Receipts relates to the Lottery grant and SABC for Boxing Awards which was signed

after the budget was approved.

AUDITOR GENERAL’S REPORT

The results have relatively improved in comparison to the previous year. The entity has achieved an unqualified audit opinion but has

to double its efforts if it is to achieve a clean audit outcome.

EMPHASIS OF MATTER

• Restatement of corresponding figures

The root cause for these changes have been attributed to monthly monitoring of accounting records not consistently done. The

entity has since introduced a system of monthly check and balance to quality assure the validity of accounting transactions. Recons

are now performed regularly and on time. Posting and casting of all balances is also performed by levels of relevant supervisors and

managers. The action plan is reported to management on monthly basis, whilst all oversight is reported on quarterly basis.

• Uncertainty relating to the future outcome of exceptional litigation

Past outstanding labour relations cases remains a challenge for the entity, however one case has been successfully concluded and

there are still five more cases underway. Constant and close monitoring by BSA management is kept on the remaining cases to

ensure that the legal team is fully supported and resourced to successfully defend BSA in the remaining cases.

• Material impairments – trade debtors

BSA is finalizing the mitigation process involving legal disputes by the Eastern Cape Promoters Association over

the interpretation of the Boxing Regulations. This matter to a large extent, affect the systematic approach to

recovering debts of promoters. Upon conclusion of the impasse the entity shall levy interest on long outstanding

debtors and improve on the turnaround times for recovering such debts.

REPORT ON THE AUDIT OF PERFORMANCE INFORMATION

BSA has developed an action plan on matter affecting performance information, this includes development of

technical indicator description document and development and implementation of Standard Operating

Procedures. Augmentation of mechanism to collect, collate, present and report performance information

regularly is also being implemented.

.

REPORT ON AUDIT OF COMPLIANCE AND LEGISLATION

• Expenditure Management

BSA has developed SCM internal control systems to prevent occurrence of irregular expenditure. Inefficiencies in

contract management resulted in the continuation of an old contract/ account for courier services, the entity has

already terminated the said contract and opted to participate in a transversal contract arranged by the National

Treasury.

The second issue relate to Medical Aid contribution not applied according to the internal policy. The entity is in

the process of concluding a process of entering into an agreement with GEMS otherwise the policy will need to be

amended to incorporate appropriate apportionment of the benefit to the employees.

REPORT ON AUDIT OF COMPLIANCE AND LEGISLATION

Revenue Management

• The matter relates to levying of interest on long overdue debtors, this matter will be

resolved once the legal disputes has been arbitrated and finalized.

Procurement and contract management

• The contract management functions have been revised and reallocated to specify

officials within the finance unit. These shall eliminate inadequacies identified. The

matter of a forever green contract has already been resolved.

WE THANK YOU !