CSA’s new T20 league is already raising a nasty stink
One of only two local owners withdraw their backing for a franchise as allegations of poor corporate governance run rampant.
CSA is under fire for its dodgy corporate governance with regards to its new T20 league. Photo: Charle Lombard/Gallo Images.
Cricket South Africa’s (CSA) new domestic T20 tournament, the Global Destination League, is already being dogged by controversy.
One of only two locally-owned franchises, Stellenbosch, are owner-less as of this week.
Brimstone Investments, a Cape Town-based company, decided to pull the plug on their team.
The side would’ve played their matches at Boland Park in Paarl with Proteas Test skipper Faf du Plessis as their star player.
But, in a fairly damning indictment on CSA’s corporate governance, Brimstone couldn’t continue following a further process of due diligence.
According to Sport24, the company said in a statement: “Brimstone continued its own internal process in regards to the proposed acquisition of the franchise. As a result of this process the company has decided not to proceed with this venture.”
CEO Mustaq Brey added: “We follow a rigorous investment process. This venture had to undergo the same process and be tested against our standard investment criteria as all other investment proposals. Our investment decisions take cognisance of the risks and benefits to all our stakeholders.”
The Stellenbosch franchise isn’t the only one running into trouble.
Various existing franchise CEO’s – who have to work with the owners during the tournament – have complained over secretive working relationships.
In fact, they’ve been forced to sign non-disclosure agreements.
That means they can’t speak out against any dodgy practices.
CSA launched the tournament at a glitzy event in London but surprised by only unveiling two local owners.
Earlier in the year, CSA chief Haroon Lorgat was adamant they wanted “at least six”.
Instead, it’s predominantly foreigners that have invested.
And not all of them are clean – one of them was even mentioned in the infamous Panama Papers.
Disconcertingly, it’s also been reported that some of the franchises are still technically unsold.
That’s due to licence contracts not being signed and deposits not being paid.
It would seem Brimstone have picked up on that with their withdrawal.
CSA have maintained silence on the matter but it’s starting to look all the more apparent that this is an elaborate money-making scheme.
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