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BOXING SOUTH AFRICA: PRESENTATION OF THE
2013/2014 ANNUAL REPORT TO THE SELECT
COMMITTEE
19TH 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
2001.

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 20th
September 2013 and Mr. Loyiso Mtya until
the 31st 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 31st 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 2013. 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] subprogrammes.

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 2013.
–
Boxing SA realized an operating surplus of R447 976 for the
year under review which translated into a surplus of R360
945 for the year
Comments on Financial Statements
cont



Expenses:
– Boxing SA incurred a total of R10.245 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 924 312 and Fruitless and
wasteful Expenditure in the amount of R182 622.

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.