ANNUAL REPORT 2019/2020 FINANCIAL YEAR BOXING SOUTH AFRICA ANNUAL REPORT 2019/2020 FINANCIAL YEAR ANNUAL REPORT CONTENTS 2019/2020 FINANCIAL YEAR PART PART A General Information Performance Information B 1. Public Entity’s General Information 1. Auditor’s Report: Predetermined Objectives 2. List of Abbreviations/Acronyms 2. Situational Analysis 3. Foreword by the Chairperson 2.1. Service Delivery Environment 4. Chief Executive Officer’s Overview 2.2. Organisational Environment 5. Statement of Responsibility and Confirmation of 2.3. Key Policy Developments and Legislative Accuracy for the Annual Report Changes 6. Strategic Overview 3. Performance Information by Programme/Activity/ 6.1. Vision Objective 6.2. Mission 6.3. Values 3.1. Programme 1: Governance and Administration 7. Legislative and Other Mandates 3.2. Programme 2: Boxing Development 8. The Consolidated Mandate of BSA 3.3. Programme 3: Boxing Promotion 9. BSA Functions 10. Organisational Structure 4. Performance Against Predetermined Objectives 5. Revenue Collection PART PART C Governance Human Resource Management D 1. Introduction 1. Introduction 2. Executive Authority 2. Human Resource Oversight Statistics 3. The Accounting Authority 4. Risk Management 5. Internal Control Unit 6. Internal Audit and Audit Committees 7. Compliance with Laws and Regulations 8. Fraud and Corruption 9. inimising Conflict of Interest 10. Code of Conduct 11. Health, Safety and Environmental Issues 12. Social Responsibility 13. Audit Committee Report 14. B-BBBEE Compliance Performance Information PART E Financial Information 1. Report of The External Auditor 2. Annual Financial Statements part A GENERAL INFORMATION PUBLIC ENTITY’S GENERAL INFORMATION 1 REGISTERED NAME Boxing South Africa PHYSICAL ADDRESS Hatfield Forum East 1077 Arcadia Street Hatfield Pretoria POSTAL ADDRESS PO Box 1347 Southdale 2135 TELEPHONE NUMBER/S +27 (12) 765 9600 EMAIL ADDRESS [email protected] WEBSITE ADDRESS www.boxingsa.co.za EXTERNAL AUDITORS Auditor-General South Africa BANKERS ABSA Bank BOXING SOUTH AFRICA 4 LIST OF ABBREVIATIONS/ACRONYMS 2 AGSA Auditor General of South Africa BSA Boxing South Africa MEC Member of Executive Council CEO Chief Executive Officer CFO Chief Financial Officer PFMA Public Finance Management Act TR Treasury Regulations MTEF Medium Term Expenditure Framework SMME Small Medium and Micro Enterprises SCM Supply Chain Management SRSA Sport and Recreation South Africa NDP National Development Plan PSA Public Service Act SANABO South African National Amateur Boxing Organisation CATHSSETA Culture Arts Tourism Hospitality and Sport Sector Education Training Authority SAIDS South African Institute for Drug-Free Sport SASCOC South African Sport Confederation and Olympic Committee SABC South African Broadcasting Corporation SABCO Southern African Boxing Convention WBA World Boxing Association WBC World Boxing Council WBO World Boxing Organisation IBF International Boxing Federation WBF World Boxing Federation ABU African Boxing Union NLC National Lotteries Commission BOXING SOUTH AFRICA 5 FOREWORD by THE CHAIRPERSON 3 DR. Malefetsane Ngatane Chairperson of Boxing South Africa While BSA largely succeeded in implementing more than 75% EXTERNAL ENVIRONMENT ANALYSIS of the National Boxing Indaba Resolutions, there are some resolutions that have had to be carried over into the 2020-2025 International and continental relations: BSA’s structured Strategic Plan. These are mainly related to issues that have third presence in the international and continental boxing scenes party dependencies (Amendment of the Boxing Regulations, has been rather minimal over the past decades. That National Broadcast Strategy, Provincial Boxing Commissions, and notwithstanding, a lot of headway has been made through Boxing Sponsorship). individual licensees’ own networks, and via lobbying outside a structured programmatic framework with international world The facilitation and attainment of a renewal process in the life bodies. Towards the end of the 2014-2019 period, BSA began of professional boxing in South Africa was underpinned by the focusing on this international and continental agenda, and this following success factors: will be stepped up even more in the current Strategic Plan. • Stabilisation of BSA governance and administration INTERNAL ENVIRONMENT ANALYSIS • Improvement in audit outcomes • Exponential increase in BSA budget baselines, even Labour disputes and litigations: While some headway has though the shortfall still remains high, when tested been made to reduce the number of labour disputes and against the legislative mandate litigation that BSA is dealing with, not all these cases have • Renewed focus on the development of the sport been resolved yet. The Board has therefore developed a risk • Reinstatement of the South African Boxing Awards mitigation plan, to avoid any future exposure of BSA to more • General rise in the profile of South African boxing, labour disputes and litigation, while prioritising the final especially internationally. resolution of the current cases facing BSA. Over the next five years, BSA will therefore continue to build on Organisational capacity: With the increased budget these successes, to (1) achieve a more capable organisation, (2) baseline, BSA will now be in a position to strengthen its drive a much stronger and inclusive boxing economy, and (3) build administrative and operational capacity, both at national and and strengthen the capabilities of the boxing practitioners across most importantly at provincial level. Critical functions, like the the entire value chain, i.e. boxers, trainers, seconds, managers, BSA internal audit environment, can now be strengthened promoters, ring officials and match-makers. through a proper internal audit unit. In the current financial year, Provincial Managers will be appointed, in the provinces DRIVING THE RENEWAL AGENDA where there are no managers and internal committees. More especially, the Sanctioning, Medical, Ratings and Women in Training and capacity building: In preparing the 2020-2025 Boxing Committees will be strengthened. Strategic Plan, the Board made a careful analysis and review of the path traversed since 2013. The Board acknowledged that in order to drive boxing’s renewal agenda, not only will we require an enabling legislative environment, a dynamic organisation, responsive systems and reliable networks and partnerships, but most importantly we will also need empowered practitioners. This therefore places licensee training and capacity building at the top of our strategy for 2020-2025. Chairperson of the Board Dr. Malefetsane Ngatane Date: 31 March 2020 BOXING SOUTH AFRICA 6 CHIEF EXECUTIVE OFFICER’S OVERVIEW 4 MR. TSHOLOFELO LEJAKA CEO of Boxing South Africa The 2019/2020 financial year was a year that BSA focused on Remaining on this path will position the entity in a good stead. cementing its priorities as outlined in the five-year Strategic Plan. The In the next financial year, BSA’s focus will be on implementing the 2019/2020 financial year also marked the last year of the five-year remainder of the key resolutions that were taken at the 2013 Boxing Strategic Plan. The strategic objectives of the Strategic Plan focused Indaba. To date over 85% of the resolutions taken at this Indaba on rebuilding the organization and building synergy between BSA have either been implemented and managed or are in progress. and its stakeholders, especially its licensees. While there has been resistance during the implementation of these resolutions, it is understandable that this is as a result of Education and awareness, compliance and stakeholder relations fear of change and lack of understanding of the direction that the management were key deliverables over the five years and BSA, entity is taking more than it is a refusal for the change. BSA will through the Annual Performance Plan, ensured that it developed thus focus on extensive communication as it walks on this journey performance indicators that directly addressed and contributed to with its licensees and other stakeholders. the strategic objectives developed. As the financial year ended, BSA was impacted by the sudden As BSA continues to reposition itself in the sporting sector and focus emergence of the Corona Virus which forced the world to a on turning around the organization; it requires, amongst other things, halt and ultimately to global lockdown. The sport of boxing a strong communication and marketing function as well as a dispute was not spared in this and on 16 March 2020, BSA suspended management focus to steer and navigate it to better shores. all its operations, canceling five tournaments that had already These function areas currently have no dedicated personnel which been sanctioned and suspending all applications for future makes it difficult for the entity to take advantage of communicating tournaments. As a result of the situation above, BSA closed the the great work that has been done in the past three financial years financial year with far fewer tournaments than what had been at least. Whilst there have been great developments in the sport targeted and also was unable to meet some of its targets that were of boxing in South Africa, these have remained known only to the planned in the last month of the financial year. The cancellation of lovers of the sport and little information reaches the corporate and tournaments had a negative impact on licensees, especially boxers private sector which are key stakeholders in boxing promotion and who mostly