BOXING SOUTH AFRICA

Portfolio Committee on Sport & Recreation

Committee Room 1, 120 Plein Street, Cape Town

21 February 2017

PURPOSE

To table a report and brief the committee on progress made regarding

matters pertaining to the Eastern Cape Promoters organization and

stakeholder meeting

And by BSA request, also

To share with the Portfolio Committee, the outcomes of Quarter 3

Performance against predetermined objectives and priorities for Quarter 4

VISION

To create a world class regulatory body for boxing in a united and safe environment

MISSION

To enhance the capacity of all stakeholders to improve the quality, passion, and popularity of professional boxing in South Africa and internationally

STRUCTURE

1) QUARTER 3 PERFORMANCE

2) KEY PROGRAMMES AT A GLANCE

3) UPDATE: Eastern Cape Promoters’ Association

VISION

To create a world class regulatory body for boxing in a united and safe environment

MISSION

To enhance the capacity of all stakeholders to improve the quality, passion, and popularity of professional boxing in South Africa and internationally

QUARTER 3 PERFORMANCE

OVERVIEW

The third term of the financial year is generally a rather shorter term in comparison to

the rest. The period includes the year end and festive season vacation.

Our strategic focus during this period was therefore mostly around boxing promotion

and to a lesser extent also on boxing development.

During this short period, we managed to catapult BSA brand exposure into the

mainstream and state our case clearly that boxing is indeed back!

As we move into midstream position of our five-year strategic plan: 2015-2020, the

question we now need to answer is whether Boxing is Back on TOP!

OVERVIEW … Cont

During the 3rd Quarter, our non financial performance outcomes has increased by 5%

from the 60% at end-September to 65% at end-December 2016.

In the fourth and last term of the 2016/2017, a lot of attention will go towards

governance issues.

Realistically, by end –March 2017 we will achieve 18 out of 20 of our predetermined

objectives as per the APP. This will constitute 90% achievement against APP targets.

The areas of under-achievement area likely to be realized on the areas of (1) number of

licensees to be trained as well as (2) Number of tournaments to be sanctioned.

VISION

To create a world class regulatory body for boxing in a united and safe environment

HIGHLIGHTS

a) Payment of R1, 3m being purse money that was outstanding from the two tournaments

hosted by Mamali and Sijuta respectively

b) Conclusion of the disciplinary process against Sijuta promotions in respect of the outstanding

purse money from the tournament they held in April 2016.

c) Two bilateral engagements with the full executive committee of the Eastern Cape Promoters

Association, following escalation of their grievances to the Portfolio Committee.

d) The first ever seminar for all BSA ring officials since 2004 that took place at Elandsfontein in

Gauteng in November 2016

e) The successful announcement ceremony of the 2016 South African Boxing Awards that took

place at SASCOC Olympic House on the 15 December 2016.

HIGHLIGHTS … Cont

a) Appointment of four female promoters to host four tournaments of Women in Boxing

Program. (More details are on subsquent slides)

b) Appointment of A2AA Kopano Audit firm to serve as BSA internal auditor following the

withdrawal of SRSA internal audit services from BSA.

c) Commencement of a civil claims against promoters who owe BSA purse money and have

been found guilty by BSA Disciplinary Committee as well as another one against PBL in

respect of the price money they owe BSA licensees.

d) Procurement exercise to secure new office premises for BSA following SRSA’s request for

BSA to secure own office space after almost one year of rent-free tenancy at SRSA offices.

QUARTER 3 PERFORMANCE

Performance against pre-determined Objectives

In terms of its Annual Performance Plan, Boxing SA has twenty performance indicators located across

its three programme areas.

The organization’s non-financial performance against pre-determined objectives for the third quarter of

2016/2017 can therefore be said to be at 65%, which is an improvement from the 60% met in the

second quarter

It should however also be noted that BSA’s APP has already received criticism from the AG and Audit

Committee for having pre-determined Objectives which are not SMART compliant. This is currently

being attended to in preparation for the 2017/2018 APP sign-off.

The organization was able to meet thirteen out of twenty indicators. In a nutshell, our performance

per programme area for this quarter can be characterized outlined in the following slides

Programme 1

Even though a lot of work has been done under this programme, this hasn’t necessarily

culminated into fulfilment of the performance indicators before end-December 2016.

The proceeds of the work done during quarter 3 will however be visible in the fourth

quarter, particularly the fruit of having appointed an Internal Audit company.

50% of the indicators in this Programme have been achieved, which is a decline from

57% met in the second quarter, i.e., Four out of the Eight Targets.

Four Targets could not be achieved, i.e. (1) Internal audit conducted, (2) 80% of

vacancies filled, and (3) Existing agreement renewed and (4) Stakeholder engagement

document finalised.

Programme 2

This programme area is the most important one in the life of BSA since it has to do with

Boxing Development.

This is the programme area focusing mainly directly at our licensees. During the period under

review, this is where the most improvement has been witnessed.

87,5 % of the indicators in this Programme has been achieved, which is a measurable

improvement from the 62,5% achievement in the second quarter. i.e, Seven out of the Eight

Targets.

Only one targets could not be achieved, i.e. (1) The number of tournaments sanctioned.

Programme 3

Activity under this programme will only start going high in the fourth quarter as most of the

Strategic documents are already as a draft level.

A lot of work is however already going on to ensure attainment of all targets under this

programme area.

50 % of indicators in this Programme has been achieved, i.e., Two out of Four Targets.

The two targets which have not been met under this programme are, (1) finalization of the

Marketing and Communication Strategy as well as (2) Revenue Generation Strategy

KEY PROGRAMMES AT A GLANCE

Appointment of Director: Operations

The position of Director: Operations has been vacant for a while as it was reported in the

previous reports.

The position was advertised in the third quarter of 2015/2016 and the successful candidate was

offered the job. Unfortunately he was subsequently countered by his employer and ended up

not taking up the post.

In August 2016 the post was once more advertised but BSA was only able to confirm the

successful candidate in December 2016 after receiving the security suitability results

This appointment brings BSA vacancy rate well below 15% which is within our APP acceptability

level of 20% and further introduces the first female Senior Manager to what was previously an

all male team constituted by CEO and CFO.

Women in Boxing

BSA issued out an invitation to female promoters to bid for financial assistance to host female tournaments focusing mainly on national title fights, provincial title fights as well as female boxers at development level.

The program was themed along the message of sixteen days of activism against violence on women and children. “Count me in: together moving women boxing forward!”

These tournament not only seek to contribute towards development of female boxing but also to advance boxing’ role towards nation building, social cohesion and civic consciousness.

Promoter Date Venue BILL

• Aphile 24.02.2017 PE SA Lightweight

Nozipho Bell (PE) vz Rushda Malick (WC)

• Zbashi 03.03.2017 EL SA Junior Flyweight

Nozwelethu Mathontsi (EL) vz Thabiseng Didi (PE)

• Malinga TBC TBC Straweight SA Vacant

Thabisa Didi (PE) vz Nozwelethu Mathontsi (WC)

• Showtime TBC TBC SA Lightweight

Ndobayini Kolosa (NW) vz Rushda Malick (WC)

Ring Official’s Seminar

The Seminar of all Ring Officials took place on 11-13 November 2015 at Elandsfontein, Gauteng

The Seminar was lauded as a success, even though from a BSA point of view, it sought mostly to

address only the elements of confidence and workplace excitement as opposed to a range of

substantive challenges facing our ring officials.

The list of resolutions from this Seminar has been attached hereto for reflection by the Board

on these matters which were raised and agreed to by the participants. ( Copies attached)

South African Boxing Awards

The sixth edition of South African Boxing Awards took place on 27 January 2017 at Inkosi Albert Luthuli

Convention Centre in Durban.

While most of the preparations towards this august occasion was meddled with challenges and little

confidence among many that the event will indeed succeed, the overall program was ultimately

successfully delivered and to a large extent also surpassed expectations in its success.

Due to limited resources, the Boxing Awards was not hosted as a stand-alone event but rather as an

integral part of the Boxing is Back program and through a partnership of (1) SRSA, (2) BSA, (3) SABC,

(4) KZN DoSAC and (6) City of Ethekwini.

The final report on the Boxing Awards is yet to be adopted by the Board once the final debrief has been

conducted by the Preparatory Committee.

Promoters Workshop

In the beginning of the year BSA issued out a circular to all Promoters regarding a workshop of

all promoters scheduled to take place on 17-19 February 2017 in Johannesburg.

Following the unavailability of some of our critical stakeholders on that date, the date for the

workshop was rescheduled to take place on 3-4 March 2017 at Fun Valley, Johannesburg South :

In summary, the objectives of the Workshop are as follows:

a) To reflect on the status quo with regard to boxing promotion– BSA by perspective

b) To reflect on the operational terrain of promoters- Perspective by promoters

c) A responsive, inclusive, equitable and commercially viable broadcast rights framework for boxing

d) To reinforce awareness of the Boxing Act and Boxing Regulation, i.r.o Boxing promotion

e) To share basic project management skills and tool kit for boxing promotion

f) To share best practices lessons and experience for competitive boxing promotion

Renewal of licenses

As previously reported to the Portfolio Committee BSA currently has 1041 licensees

whose licenses will expire on 31 March 2017.

BSA has already issued out a circular to all licensees urging them to ensure renewal of

their licenses on or before 31 March 2017.

BSA has emphasized that any person who hasn’t renewed his/her license by 31 March

2017 will automatically seize to be a licensed BSA practitioner in any category by 1 April

2017 if he/ she hasn’t renewed license by 31 March 2017.

NB: All licenses must be renewed on or before 31 March 2017. Any person who hasn’t

renewed his license by 31 March 2017 will automatically seize to be a BSA licensee

by 1 April 2017!

Application to host tournaments

From 1 April 2017, BSA is going to step up the gear with regard to enforcement of compliance

measures when applying to host tournaments. Key among the issues that BSA will start tightening up

and enforcing without exception are the following:

The Sanction Committee will handle sanction applications only once per month. This means that

henceforth, tournaments applications will need to reach the office on or before the first Wednesday of

each month, provided that such applications are:

◦ Submitted more than thirty one days before the tournament as per…

◦ Submitted in full with all the necessary accompanying documentation (Any application submitted without all

the accompanying documentation will not be accepted or declared to have been received.)

◦ Payment for purse money is made on or before fourteen days before the tournament. Any tournament for

which purse money is not made by fourteenth day before actual tournament day will automatically

NB: The office will no longer entertain any late tournament application that presumably will

require the sanction committee will go out of its monthly schedule to handle it. If an

application is doesn’t comply with the thirty days notice period, it will simply be

thrown out.

EASTERN CAPE PROMOTERS ASSOCIATION

BSA-ECPA Engagements

Since BSA’s appearance before the Portfolio Committee on 11 October 2016, BSA went on to hold two

meetings with the Eastern Cape Promoters Association Executive Committee.

The first meeting was held on 5 November 2016 at OR Tambo Garden Court Hotel and the second

meeting was held on 20 January 2017 at Eastern Cape Department of Sport, Arts and Culture Regional

Offices in East London.

At this moment, a lot of headway has been made to clarify the rules of engagement between the

Board and this provincial structure and to further locate issues in proper perspective.

There were a number of items proposed by the Eastern Cape Promoters Association for discussion

with the Board and all these have now been discussed.

Some matters were clarified on the spot while others were properly located to be rather matters of

national competence and not that of a provincial association.

Other issues raised

1.Licensing of Boxers and Promoters

As part of other issues raised and discussed, ECPA proposed that licensing of boxers must not be

deadline driven. This matter was however clarified by BSA including the rationale for the deadline of

renewal of license applications each year.

ECPA submitted an array of challenges which face promoters upon renewal of their licenses. BSA

however further clarified that such challenges should be escalated on time so that BSA is made aware if

there is any licensee who seek renew his/ her license but encounters challenge.

BSA further clarified that there is provision for special consideration of any license application by the

Board provided that reasons for it are compelling and unavoidable.

ECPA also submitted that they would like to see the recruitment process of new promoters stratified

and transparent and to this effect, they will submit a proposal for consideration by BSA.

Other issues raised

2.Boxing is Back & TV Coverage

The Association indicated they don’t have anything to submit regarding this item,

however they are of the view that this programme is till riddled with challenges

BSA however submitted that it is in receipt of correspondence from the Nelson Mandela

Region which has a special request to be considered for Boxing is Back TV coverage

since their view is that they are currently dominated by Buffalo City.

ECPA emphasized that, Nelson is part of Eastern Cape and it will therefore be

inappropriate for them to be treated as a stand-alone.

It was also reflected that a framework between BSA and SABC will be presented at the

National workshop of promoters, which is currently scheduled too take place on 4-5

March 2017.

Other issues raised

3. Provincial Commissions

ECPA submitted that in their view, the Boxing Indaba Resolutions have not been implemented in

respect of the establishment of Provincial Commissions and the review of Boxing Regulations.

BSA indicated that while the need and rational for expansion of BSA establishment cannot be

overemphasized, it should however be noted that this matter has financial implications which BSA is

currently not in the position to afford.

It was mutually agreed that the exercise of preparing a motivation to the Minister for the review of the

regulations, flagging out specific areas , where clearly a review or modernization is required should be

undertaken.

Other issues raised

4. Sanction Levies : Difference in Interpretation

ECPA mentioned that, they maintain their interpretation of the South African Boxing Act

and Regulations on this matter.

ECPA admitted that in the meeting of 5 November 2016 there was an agreement that

both parties must consult and submit their legal opinions within 14 days.

ECPA indicated that they still need time to consult their legal team, and they will submit

the opinion on or before 7 February 2017.

Both parties agreed that whether the verdict of the conciliation process on the

interpretations is positive or negative, both parties must avoid taking the matter to court

but narrow up the scope of conflict and try to find an amicable solution.

Internal processes must be utilized i.e. Dispute Resolution Committee.

Extract from the Regulations Section 11: Sanctioning of tournaments, fees and purse monies

Extract from the Regulations Section 11: Sanctioning of tournaments, fees and purse monies

Major bone of Contention

The meeting emphasized that this issue of different interpretation of the Boxing Regulation in

respect of Sanction levies still remain a major thorny issue and need to be fast tracked and

finalised.

The agreement was that both parties (BSA and ECPA) should source legal opinion on this

matter and then find some amicable solution to their divergent views on the matter. BSA has

already secured legal opinion on this matter and it reinforced the long held view that the

current interpretation is correct.

On 10 February 2017, ECPA wrote to BSA requesting an extension until 20 February 2017

before they can submit their legal opinion regarding their interpretation of the regulations with

regard to Sanction Levies.

WE THANK YOU !