PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE ON SPORT AND

PRESENTATION TO PARLIAMENTARY PORTFOLIO COMMITTEE ON SPORT AND RECREATION 15 NOVEMBER 2005 CAPE TOWN

FORMAT OF PRESENTATION • • New Board, Vision and mission Problems and challenges Action taken Plans for the future

NEW BOARD • • • Adv Dali Mpofu Ms Stompie Xulu Dr Peter Ngatane Mr Sakhiwe Sodo Ms Violet Magwaca Mr Alan Norman

VISION AND MISSION • To create a regulatory framework aimed at enhancing the capacity of all stakeholders to increase the general quality, financial viability, economic sustainability, entertainment value and popularity of boxing in South Africa as well as enhancing its local and international status

ADMINISTRATIVE ISSUES • Compliance with Boxing Act • Appointment of CEO • Interviews held and appointment imminent • Formalising structure of organisation • Approved by Minister in July 2005 • New structure proposed to include Provincial Reps • Current staff on contract until 31 January 2006 • Process underway to formalise appointments

FINANCIAL RESOURCES • REVENUE STREAMS • Private sector R 3, 3 m • Licence fees R 0, 5 m • Sanctioning fees R 1, 2 m • Govt grant R 1, 4 m • National Lotteries Board R 0, 75 m • STEPS TAKEN • Source new sponsors • Increase participants • Review tariffs • Appeal for more funds • Rightsize funding request

WELFARE ISSUES • Accident cover insurance for all • Death and disability covers for boxers • Public liability cover • Assets insurance • Boxing Foundation • Operation Outreach • Done • In progress

TRAINING AND DEVELOPMENT • Courses at High Performance Centre University of Pretoria • 20 Promoters • 38 Ring Officials • 20 Boxers • 10 Administrators • Board and staff members • Informal training workshops • • Done Done 4 Done 2 more before year end

REL WITH INT BOXING ORGANISATIONS AND SANABO • International Boxing Organisations • SANABO • Discussions held with WBC, WBA and IBO • Agreements to cover ratings, training and KO drug programmes in progress • Draft agreement to ensure seamless delivery • Finalisation set for January 2006 at BSA Awards

OWNERSHIP ISSUES • Boxing Awards • Museum • Broadcast rights • BSA retaken ownership • Discussions with Distell re NASREC museum • Committee established to explore relationship between broadcasters, promoters and BSA

ACHIEVEMENTS OVER 3 YEARS • Ensure BSA members meet stipulations of Act • Letters of Appointment • Studying the Act • Acting upon objectives of Act • Take charge of Boxing • Cut umbilical cord from SRSA • Provide framework to stakeholders to determine relationship • Determining Headquarters • Facilitate formation of formal Associations • Done • • • Done Done • Done • In Progress

ACHIEVEMENTS OVER 3 YEARS • Giving effect to its powers provided for in the Act • Ensuring stability in the interim period • Establish committees (ratings, sanctioning, etc) • Take account of funding • Staffing of BSA • Funds appropriated by parliament • Immediate attention to Regulations • Presentation to portfolio committee • Formal Launch • Done • • Done In Progress Done

2005 ANNUAL REPORT • CHAIRMAN’S REPORT • GENERAL MANAGER’S REPORT • ANNUAL FINANCIAL STATEMENTS FOR 2004/5

CHAIRMAN’S REPORT • Consolidated and unitary administration • Insurance cover for licencees and spectators • Relationship between boxing and television • Transformation – from stability to quality • Accountability • Boxing SA Foundation • Hand-over issues

GENERAL MANAGER’S REPORT • Systems and procedures for sound admin • Insurance for boxers injured in ring • Getting an appreciation of the relationship between boxing and television • Implementation of Boxing Convention resolutions • Tournaments • Training • Looking ahead

2005 FINANCIAL STATEMENTS • Qualified Report for 2004 due to incomplete correlation between funds received and issuing of 2004 licences • Licencing application process was conducted by the BSA Provincial Representatives • Due to financial constraints – concessions were made for fees to be deducted from boxers purses • Concessions also made for ring officials to pay in instalments • Led to administrative problems and subsequent qualification

UNAUDITED FINANCIAL STATEMENTS • Submitted timeously on 31 May 2005 to Auditor General and SRSA • Statements withdrawn by Board due to concern that they may be disclaimed • Minister notified and indulgence sought • Financial Statements rectified and resubmitted on 27 September 2005 • Second audit completed by AG on 31 October 2005

AUDIT CONTROLS IN PLACE • • Audit committee appointed Scheduled to meet quarterly Members: Mr Duncan Ntuli Mr Alan Norman Adv Dali Mpofu Mr Monde Tabata

SEGREGATION OF DUTIES 1. Payments 2. Payments prepared by Administrator 3. Processed and recorded by Chief Financial Officer 4. Authorised and released on electronic banking system by the General Manager 2. Reconciliations are reviewed and signed off by the General Manager

PAYROLL CONTROLS IN PLACE • All earnings and deductions processed on VIP payroll system, and reviewed by General Manager • PAYE and other deductions calculated by VIP • Statutory deductions and returns submitted and paid promptly

PROGRESS MADE ON IMPLEMENTATION • Licence fees procedures applied and receipts reconciled to general ledger • Separate bank account opened for licence fees • Audited fixed asset register now maintained. • Budget prepared and quarterly comparisons with actuals and reporting to the Board. • Internal audits performed on all tournaments to ensure financial compliance and integrity of the system

EFFECTIVE ADMINISTRATION • Policies, procedures and controls in place • Full staff complement expected early in 2006 • Due compliance with time limits, procedures and reporting requirements

BABY CHAMPS PROGRAMME • • • Boxers with fewer than 4 bouts 10 tournaments throughout country 168 participants in 7 divisions Finals on day of Boxing Awards in 2006 Undercard also includes female bouts in conjunction with SANABO • Incentive for development promoters • Potential international exposure for winners and camps • Plant to increase divisions and incentives

PLANS FOR FUTURE • Regulate relationship between BSA, Broadcasters and promoters • Sign agreements with international boxing organisations • Segmented approach to training and development • Specialised training for different categories • Improve quality of tournaments • Enhance popularity of boxing

BOXING SOUTH AFRICA • Thank you for the opportunity and the extension of time given to the Board.