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9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA CAPE TOWN
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Page 1: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

9 October 2018

BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER

10 SEPTEMBER 2019

OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING

PARLIAMENT OF RSACAPE TOWN

Page 2: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

PRESENTATION STRUCTURE

PART A: FOREWORD

PART B: STRATEGIC OVERVIEW

PART C: PERORMANCE OVERVIEW

PART D: FINANCIAL REPORT

PART E: CONCLUSION

Page 3: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

PART A

ACCOUNTING AUTHORITY’S

FOREWORD

Page 4: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

FOREWORDStrategic review session: 27-28 October 2018

• Since our last engagement with Portfolio Committee on 10, October 2018, on the weekend of 27-28 October

2018 the Board of Boxing South Africa (BSA) held its mid-term strategic review session to reflect on its journey

into the current financial year and take stock of accomplishments against set targets.

• The reflection told a story of an unfolding journey towards a set horizon. The evaluation revealed a journey

punctuated by moments of bumpy rides and uphill battles.

• The assessment showed episodes of downward slides, coupled with surges through flat and fast terrains

where milestones were reached even ahead of schedule.

• Be that as it may, this remains an unfolding story of a journey in motion... the unfolding journey to recovery!

Page 5: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

FOREWORD

The unfolding journey to recovery

As it is now common knowledge, the Boxing Indaba of 2013 marked the beginning of a renewal period for the

sport of boxing in our country.

Of course this period has not been without its weaknesses. It has however, remained a period of hope and

momentum to progress. A period that was to be affectionately known as the ‘Boxing is Back’ period. The upshot

of this period led to a number of milestones, including amongst others:

✓ Stabilisation of BSA governance and administration and Improvement in audit outcomes

✓ increase in Boxing South Africa budget baseline, even though the shortfall still remain high

✓ Return of boxing broadcast, albeit with inconsistency and other challenges

✓ Return of the South African Boxing Awards

✓ Development of Women in Boxing Program

✓ Renewed focus on the development of the sport of boxing

✓ Rising profile of boxing locally and international recognition of South African boxers

Page 6: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

PART B

STRATEGIC OVERVIEW

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FOREWORDStepping up to the next level

The key focus of the current juncture is to continue on the momentum of the unfolding journey to recovery, mindful of the reality

that we are not there yet! Our defined strategic goal is to make the circle of success even bigger, cognisant of the truth that not all

are included yet!

What our mid-term strategic review confirms with certainty though, is that we are both on track and on target. We say so bolstered

by these highlights in our boxing sector since 1 April 2018

✓ South African Referees and Judges continue to enjoy recognition and confidence of the world boxing community resulting in

increased invitations (E.g, Deon Dwarte’s IBF call up to officiate in the World Boxing Super Series in Russia)

✓ 6 new World champions in 2018/2019 alone. ( Xolisani Ndongeni, Hekkie Budler, Thulani Mbenge and Moruti Mthalane, Deejay

Kriel & Nozipho Bell)

✓ Hekkie Budler victory against Ryoichi Taguchi in May 2018 rewrote history (he won IBF, WBA and elusive Ring Magazine belt)

✓ Zolani Tete progression to semi-finals of Bantamweight division of the 2nd edition of the World Boxing Super Series.

✓ Four nominations in the SA Sport Awards 2018 (Nic Lourens, Zolani Tete and two nominations for Hekkie Budler)

✓ In the 2018/2019 financial year we sanctioned 79 tournaments and we are seeing new growth spots (Nelson Mandela Metro)

✓ Strengthening of the Medical Commission and mainstreaming of its function and authority

✓ New National Championship Belts launched in December 2018

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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

LEGISLATIVE & Other Mandates

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

Page 9: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

The Consolidated Mandate of BSAKey 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.

Page 10: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

• 80% of BSA’s approved andfunded posts are currentlyfilled.

• Currently there are onlytwo vacancies in thepositions of Receptionistand Messenger/ Driver.

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PROVINCIAL BOXING CONTROL BOARDS

• When the Boxing and Wresting Control Act of 1954 was repealed and replaced by the SA boxing Act of 2001, one of the

major structural implications was the repeal of the provincial boxing control boards.

• The Act only provided for a national board which would be appointed by the Minister as well as full-time office at national

level. The 1954 Act, provided for the Minister to appoint five board members. ( One member being the national

chairperson and each member representing one province as per the old demarcations.)

• When the then new Act came into force, the provincial boards were done away with. In order to service provinces, Boxing

South Africa had to appoint independent contractors whose key responsibility is mainly to oversee tournament

supervision in provinces. These contractors are neither employees of Boxing South Africa, nor office bearers. This places

serious limitations on Boxing South Africa’s existence and impact at provincial and regional level.

• In terms of the current structure, the board of Boxing South Africa is constituted of seven members and the national

office has an organogram of fourteen approved and funded posts. The board also has a number of oversight and

operational committees which are constituted of external members.

Page 12: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

PART C

PERFORMANCE OVERVIEW

Page 13: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

SITUATIONAL ANALYSIS

• ANNUAL PERFORMANCE PLAN: 2019/2020 Annual Performance Plan was duly tabled by Minister on 24 March 2019

• ANNUAL REPORT: 2017/2018 Annual Report was duly tabled by Minister on 28 August 2018 and presented to Portfolio

Committee on 9 October 2018

• POLICY DEVELOPMENT: 14 Internal Policies were developed add approved by the Board to strengthen the organisational

internal control environment

• PERFORMANCE MANAGEMENT & DEVELOPMENT: Boxing South Africa continues to implement and comply with

Performance Management and Development Policy by ensuring that all employees sign performance contracts and are duly

assessed. The limitation is however mainly with respect of Performance Development intervention because of inadequate

funding for training.

• LEGISLATIVE REVIEW: As already indicated above, the process of developing the internal review of the Boxing Regulations

was kickstarted during the period under review.

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PROGRAMME AT A GLANCE

Programme Purpose

1.Governance To provide strategic leadership, good corporate governance and the

overall administration and financial sustainability of boxing

2.Boxing Development To ensure compliance with the key aspects of the Boxing Act, and rules

and regulations and enforce their application where non-compliance is

observed.

The programme will drive compliance with the licensing of practitioners,

sanctioning of BSA events, ratings of boxers as well as the coordination

of training needs of all licensees to enable them to meet the

requirements of the regulations.

3. Boxing Promotion To promoter and market boxing to improve its public profile, increase its

brand value as well as coordinate premium BSAS events across the

country.

Page 15: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

GOVERNANCE AND ADMINISTRATION

• APP and Annual Report: The APP 2019/2020 was finalised and presented to the Executive Authority on 24 March

2019. It was subsequently tabled before parliament by the Minister on 27 June 2020

• POLICY DEVELOPMENT: 14 Internal Policies were developed and approved by the Board with a view to strengthen

internal control environment of Boxing South Africa.

• FUNDED POSTS: BSA has an approved and funded organogram of 14 posts. Currently only 2 vacancies exists in the

organisation and the funding for those vacancies is currently funding two posts which are additional to establishment

while the organisational review process is still underway.

• PERFORMANCE MANAGEMENT AND DEVELOPMENT: Implementation of Performance and Development Policy has

been fully complied with. All staff members have signed their performance management contracts and their

assessments duly conducted.

• LEGISLATIVE REVIEW: The process of reviewing the SA Boxing Regulations has been kickstarted and in the previous

financial year, a consultation with the licensees was undertaken to canvass inputs and develop a perspective. The

formal amendment process will then be driven by the Department and the Ministry.

Page 16: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

GOVERNANCE DEVELOPMENT

• TRAINING: For the first time, in 2018/2019 managed to achieve its training targets. 301 licensees were trained in 5 different training

platforms, across the country.

• WOMEN IN BOXING: BSA was successful to register 100 female licensees across different categories. However, the challenge still remains to

create more opportunities for female participants. Out of 79 tournaments, women boxers were able to participate in 16.

• SANCTIONING: Total of 79 tournaments were sanctioned during 2018/2019, signalling a growth of one tournaments compared to 78 of

2017/2018. 21 tournaments were development, 12 featured provincial titles, 16 featured national tournaments, 34 featured international

titles and 6 features world title fights.

• RATINGS: On a monthly basis, BSA continues to produce and publicize national ratings for both male and female boxers across all 17 weight

divisions.

• NATIONAL TITLES: In December 2019 BSA launched new national title belts designs as well as various provincial title belts. A total of 16

national title fights were sanctioned during 2018/2019 and 12 provincial title fights.

• ASSOCIATION: In 2018/2019 BSA Board undertook various roadshows, specifically with promoters and promoter’s association. The main focus

was to address concerns relating to enforcement of Boxing Act and Boxing Regulations as well as the establishment and operations of

Promoters Associations as per the Regulations.

Page 17: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

GOVERNANCE PROMOTION

• BOXING SPONSORSHIP: One sponsorship was achieved during 2018/2019 through partnership with Gauteng

Sport, Arts & Culture department. The sponsorship assisted to fund an International Boxing Tournament

during the Arnolds Classic Africa programme that took place in Sandton ICC, Johannesburg in May 2018.

• SOUTH AFRICAN BOXING AWARDS: The third edition of the repackaged SA Boxing Awards took place on 17

May 2019 at Sandton Convention Centre. The Awards were delivered through partnership with Gauteng Sport,

Arts & Culture department, Gauteng Promoter’s Association as well as the Arnolds Classic Africa.

• BOXING BROADCAST: One of the major areas of focus during period under review was BSA’s input into the

ICASA Sport Services Broadcast Regulations of 2010 review process. The sector’s written submission was duly

made and on 28 May 2019, BSA also made verbal presentation to the ICASA review panel.

• BOXING INFORMATION PROVISION : BSA is currently development an Information Provision Portal which

seeks to replace the paper based archival system and also make critical boxing information readily available for

users.

Page 18: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

LICENSEES FOR 2019/2020

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

In 2019/2020 BSA’S license holders were 1 136 as at end-July 2019

688 of these licensees are boxers and 95 are women across different categories of licensees.

Categories Males Females Total

1. Boxers 646 42 688

2. Managers 117 5 122

3. Trainers 66 3 69

4. Ring Officials 56 15 71

5. Seconds 70 4 74

7. Promoters 64 23 87

8. Matchmakers 9 1 10

9. Ring Announcers 13 2 15

TOTAL 1040 95 1136

Page 19: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

LICENSEES PER CATEGORY

Province Boxers Managers Trainers Promoters Officials Seconds Announcers Matchmakers Total

GP 246 49 16 28 15 31 7 2 394

EC 221 47 22 35 21 28 4 5 383

KZN 76 1 16 8 8 10 - - 119

WC 66 14 12 5 8 1 2 1 109

LP 39 4 - 4 11 - 1 1 60

MP 14 2 - 4 4 1 - 1 26

FS 17 4 - 0 2 2 - - 25

NW 9 1 2 2 1 1 - - 16

NC 1 - 1 1 - - 1 - 4

Total 688 122 69 87 71 74 15 10 1136

Page 20: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

TOURNAMENTS PER YEAR

Province GP EC WC KZN LP FS MP NW NC Total

2015/2016 28 33 7 6 4 2 1 1 1 83

2016/2017 25 24 11 8 4 2 0 1 0 75

2017/2018 32 13 14 7 4 6 1 1 0 78

2019/2020 30 24 8 9 4 1 0 3 0 79

83

75

7879

2015.16 2016.17 2017.18 2018.19

Performance per Year

Page 21: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

SOUTH AFRICA’S WORLD CHAMPIONS

Male World Champions belts currently in South Africa

Female World Champions belts currently in South Africa

Boxer Weight Date won WBF IBO Four Major World Bodies Status

WBA WBC WBO IBF

Noni Tenge Welter 08.09.2017 Still Champ

Unathi Myekeni Feather 08.09.2017 Lost 29.03.19

Nozipho Bell Feather 29.03.2019 Still Champ

Bukiwe Nonina Bantam 01.03.2017 Still Champ

Boxer Weight Date won WBF IBO Four Major World Bodies Status

WBA WBC WBO IBF

Kevin Lerena Cruiser 09.09.2017 Still Champ

Thulani Mbenge Welter 23.06.2018 Lost 06.07.19

Xolisani Ndongeni Light 06.04.2018 Stripped 01.02.19

Zolani Tete Bantam 22.04.2017 Still Champ

Gideon Buthelezi Super Fly 18.12.2015 Still Champ

Moruti Mthalane Fly 15.07.2018 Still Champ

Hekkie Budler Junior Fly 20.05.2018 Lost 31.12.18

Deejay Kriel Mini Fly 16.02.2019 Still Champ

Simphiwe Konco Mini Fly 11.06.2016 Still Champ

Page 22: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

RATINGS (NATIONAL & TOP TEN RATED)

Men’s ratings for July 2019, published on 10 August 2019

Division Weight 10 9 8 7 6 5 4 3 2 MANDATOARY CHAMPIONS

Heavy Weight 86.15 + Tian Fick Ruan Visser

Cruiser Weight 86.15 Akani Phuzi Thabiso Mchunu

Light Heavy Weight 79.85 Frank Rodriguez Nicholaas Ridley

Super Middle Weight 76.20 Ryno Liebenberg Rowan Campbell

Middle Weight 72.35 Ayanda Mthembu Walter Dlamini

Junior Middle Weight 69.85 Boyd Allen Nkululeko Mhlongo

Welter Weight 66.68 Uyanda Nogogo Mziwoxolo Ndwayana

Junior Welter Weight 63.50 Marcus Lebogo Xolani Mcotheli

Light Weight 61.25 Michael Mokoena Ayanda Nkosi

Junior Light Weight 58.95 Sbusiso Zingange Phila Mpontshana

Feather Weight 57.15 Lerato Dlamini Khanyile Bulane

Junior Feather Weight 55.34 Ayabonga Sonjica Innocent Mantengu

Bantam Weight 53.52 Michae Daries Ronald Malindi

Junior Bantam Weight 52.16 Lindile Tshemese Sabelo Ngebiyane

Fly Weight 50.80 Fikile Mlonyeni Jackson Chauke

Junior Fly Weight 48,99 Nkosinathi Joyi Nhlanhla Tyira

Mini Fly Weight 47.63- 45kg Siphamandla Baleni Xolisa Magusha

The Progression direction

Page 23: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

RATINGS (NATIONAL & TOP TEN RATED)

Women’s ratings for May 2019, published on 10 August 2019

WOMEN’S RATINGS. JULY 2019

Division Weight 10 9 8 7 6 5 4 3 2 MANDATOARY CHAMPIONS

Heavy Weight 86.15 + VACANT

Cruiser Weight 86.15 VACAN

Light Heavy Weight 79.85 VACANT

Super Middle Weight 76.20 VACANT

Middle Weight 72.35 Mapule Ngubane

Junior Middle Weight 69.85 Mapule Ngubane VACANT

Welter Weight 66.68 Julie Tshabalala

Junior Welter Weight 63.50 Hedda Wolmarans Sandra Almeida

Light Weight 61.25 Kholosa Ndobayeni

Junior Light Weight 58.95 Sthandiwe Ngcobo VACANT

Feather Weight 57.15 Matshidiso Mokebesi Asandiswa Nxokwana

Junior Feather Weight 55.34 Gabisile Tshabalala Matshidiso Mokebesi

Bantam Weight 53.52 Sharadene Fortuin Mellisa Muller

Junior Bantam Weight 52.16 Simangele Hadebe Leighandre Jegels

Fly Weight 50.80 Noxolo Makhanavu

Junior Fly Weight 48,99 Nthabiseng Didi Nozwelethu Mathonzi

Mini Fly Weight 47.63- 45kg Nothuthuzele Chitani VACANT

The Progression direction

Page 24: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

PART D

FINANCIAL OVERVIEW

Page 25: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

1.Overview

2.Financial pressure points

3.Fraud risk and internal audit

4.Financial management

FINANCIAL REPORT INDEX

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1. In terms of the audited annual financial statements of 2018/2019 ,the BSA budget was as follows

• Sanctioning fees – anticipated revenue reduced due to decrease in a number of tournaments during 2018/2019.

• License fees – more applications were received during the 2018/2019 financial period.

• General expenditure – High spending items are attributed to travelling on boxing projects according to fiduciary responsibilities

2 Comparison to prior year audit outcome- Unqualified

• The total expenditure was spend within the budgeted figures and there was no Unauthorised/Irregular Expenditure reported for the current year.

• The entity has realised a surplus for the current period as oppose to the prior year

3 Audit Action Plans –Progress compared to last year

• 2017/2018 - 52 findings were raised during the audit, 48 (92%) were resolved and the remaining 4 (8%) related to challenges mentioned below. Specific areas of improvements include amongst others

❑ Operational internal audit function

❑ Administration of matters pertaining to Fraud and Risk Management

❑ Improvements on contract administration and contract management

❑ Improvements on document management and storage

❑ Improvements on compliance matters compared to previous periods on financial and performance information

• 2018/2019 – 46 findings have been raised and AG has already performed a high level review on the APP as a results all the performance matters (AOPO) have been resolved , this constitute 42% (19)of queries raised.

OVERVIEW

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4 Capacity Limitations and challenges includes the following matters

• Liquidity and Going concern -The liquidity of the entity is negatively affected by the following items listed below

❑ Baseline adjustment issues - The matter has already been raised with the Executive Authority since last year to highlight pressure point that are mainly administrative and deal with compliance to applicable legislation. This will enable the to run efficiently and ensure that the system of internal controls is maintains at al times. The table reflected on the following slide depicts imminent financial pressure points.

❑ Litigations – the entity has long outstanding legal matter where in most cases the entity is a defendant , the challenge remains that the legal fees has direct financial impact if all cases where to be concluded with adverse results against the entity .

❑ Revenue collection – Improvements on the recovery of long outstanding debts have been registered on two ways. Firstly the process to recover is administers on a monthly basis, concessions and payments arrangement are entered into with promoters who are operational, the entity is going to use the services of a debt collector to recoup any possible income through participation in the National Treasury transversal contract for debt collectors which will be concluded in October 2019 . Secondly, the entity has commence with the process of proposing a new funding model that will charge direct cost before tournament is undertaken , this will reduce the administration costs of managing long outstanding debtors with a direct positive cashflow impact on the books of BSA

OVERVIEW

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Compliance matters Provincial Capacity Personnel & Systems

Item Amount Item Amount Item Amount

1 Internal Audit R 600 000.00 1. Provincial Managers R 400 000.00 1. Personnel R 500 000.00

2 Auditor General R 1000 000.00 • Limpopo • SCM3 Inspectorate R 500 000.00 • North West • Communications

4 BSA Core function R 600 000.00 • Northern Cape 2 Systems (Licensing &records)

R 500 000.00

Sanction • Free State 3 MISS Compliance R 600 000.00Rating • Document &

Physical Security

Medical5 Publications R 300 000.00• Annual Report• Annual Performance Plan

SUB-TOTAL R 3 000 000.00 R 400 000.00 R 1 600 000.00

FINANCIAL PRESSURE POINTS

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FINANCIAL MANAGEMENT , FRAUD & RISK MANAGEMENT AND INTERNAL AUDIT

FRAUD & RISK MANAGEMENT AND INTERNAL AUDIT.

1. The entity previously used to have recurring findings on the compliance and functionality of the Audit Committees, Internal audit unit as well as fraud risk management activities.

2. Significant improvements have been made the compliance with relevant legislations pertaining to Audit Committee , Internal audit and Fraud& Risk Management units.

3. It should be noted that internal audit function is outsourced and the scope of their function is limited to auditing of quarterly performance information and Fraud & Risks Management activities due to limited financial muscle .

FINANCIAL MANAGEMENT – (i.e. the table below depicted in the slide below hereby refers)

❑ SCM - The procurement and contract management matters has been reduced in terms of compliance and recurrent issues , the matters disclosed below relate to matters raised by the AG relating to long contracts(ever - green contracts) entered into by the entity . All the long contracts have been changed.

❑ The consequence management was done however it was agreed with the AG that the current process was not sufficient to qualify as standard accepted investigation . The matters of disciplinary have been disclosed in the annual report.

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FINANCIAL MANAGEMENT

The following matters have a direct impact on the operations of the entity that in the assessment of past 5 years they following patterns have emerged .

The has been a steady decline over the years on the current fruitless & wasteful expenditure, whilst Irregular expenditure was increased by over-expenditure during the 2017/2018 financial period.

Items 2014 2015 2016 2017 2018 2019

Irregular Expenditure R 2 461 R 4 382 R 7 073 R 4 865 R 6 569 R 7102

Fruitless Expenditure R 1 914 R 2 301 R 2 536 R 2 452 R 2 520 R 2 559

Audit Opinion Unqualified Qualified Unqualified Unqualified Unqualified Unqualified

30

R 1

92

1 R

2 6

91

R 7

91

R 1

70

4

R 5

33

R 3

86

R 2

35

R 8

1

R 6

9

R 4

0

R -500

R -

R 500

R 1 000

R 1 500

R 2 000

R 2 500

R 3 000

2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

Irregular Expenditure Fruitless & Wasteful

Page 31: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

PART E

IN CONCLUSION

Page 32: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

SOUTH AFRICAN PROFESSIONAL BOXING ECOSYSTEM

Matchmakers

Seconds

Managers

Trainers

Officials

Promoters

Boxers

Licensing

Sanctioning Ratings Management & development

Programmes Associations

BSA Act BSA Regulations

BSA Strategic Plan BSA Performance Plan BSA Budget/ Resources

The Board

BSA Committees

Full-time Office

DSRAC

WBA Common-Wealth

SASCOC

IBO

WBC IBF WBO

WBF

Provinces

Municipalities

AUSC Region 5

Broadcast, Sponsorship, Partnership

Broadcaster

National Lottery

Media

Sponsors

Exceptional talent Quality

Tournaments Reliable broadcast Best in the World

Inspiring life stories

Spectators

Supporters

Hospitals

Lawyers Service Providers

Subsidies Grants,

Suppliers, Services

Consumers

Bloggers

Researchers

Writers

Clubs Gyms/ Facilities Competition

Career pathway Scientific support

Recognition

SANABO

Next generation New Communities

SAIDS

Minister

Parliament

THE BSA ECOSYSTEM

Page 33: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

THE GROWTH PATHSOUTH AFRICAN PROFESSIONAL BOXING GROWTH PATH

1. Known 2. Acceptable 3. Enforceable 4. Consistent 5. Amendable

1. Innovation 2. Market niche 3. Priorities 4. Professional 5. Dependable

1. Boxer-centered 2. Capacitated

practitioners 3. Collaborations 4. Business planning 5. Adaptable

1. Accountability 2. Transparency 3. Rule of Law 4. Monitoring &

Evaluation 5. Equitability &

inclusiveness

1. The gladiators 2. Quality fights 3. Engaged audience 4. Quality production 5. Rivalries/ Derby 6. Trivia & analytics 7. The storyline 8. Rules knowledge 9. Consistency 10. Role models

LEVEL 1

Legislative & Regulatory Framework

LEVEL 2

Governance and Administration

processes

LEVEL 3

Programmes and activities

LEVEL 4

Business plans and value propositions

LEVEL 5

Viewer experience and

memories

• The Act

• Regulations

• 5-years Plan

• Annual Plans

• Budget

• Licensing

• Sanctioning

• Ratings

• Management & development

• Programmes

• Associations

• Clubs

• Gyms/ Facilities

• Competition

• Career progression

• Scientific support

• Recognition

• Broadcast

• Sponsorship

• Partnership

• Subsidies

• Grants

• Suppliers

• Services

• Exceptional talent

• Quality Shows

• Reliable broadcast

• Best in the world

• Inspirational life stories

Page 34: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

KEY ISSUES FOR CONSIDERATION

a) Boxing Regulations Amendment process

Amendment of South Africa Boxing Regulations of 2004

b) Review of Boxing South Africa Budget Baseline

Review of the current budget baseline of Boxing South Africa in light of pressures facing BSA

c) Boxing South Africa Legal/ Litigation matters

Note and reinforce BSA legal capacity in respect of the ongoing labour relations disputes.

d. National Boxing Broadcast Framework

Reinforce BSA efforts to address the Broadcast challenges. (ICASA Sport Broadcast Review and

engagements with the national public broadcaster)

e. Stakeholder alignment

Afford opportunity for BSA to make presentation to MINMEC (aligned coordination of boxing work

across all provinces)

Page 35: OLD ASSEMBLY CHAMBER OLD ASSEMBLY …9 October 2018 BOXING SOUTH AFRICA PRESENTATION TO THE MINISTER 10 SEPTEMBER 2019 OLD ASSEMBLY CHAMBER OLD ASSEMBLY BUILDING PARLIAMENT OF RSA

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