The board of directors of Cricket South Africa has exercised its step-in rights at the Western Province Cricket Association and granted CSA’s management team the mandate to appoint an administrator to take over the administrative, governance and financial affairs of WPCA until, according to CSA, “all these respective functions have been placed on a satisfactory footing.”
According to CSA, this has been done in terms of clauses 12.3 and 12.4 of its Memorandum of Incorporation.
“It has come to the attention of CSA that the WPCA Board has been conducting business under distressed conditions in relation to, inter alia, the WPCA’s administrative, governance and financial affairs,” said a CSA statement.
As a result, CSA has suspended the WPCA board and appointed Professor Andre Odendaal as administrator. Odendaal is an experienced administrator who previously served as chief executive of WPCA for an extended period of time.
“Professor Odendaal will present monthly progress reports to CSA during the step-in period, which starts with immediate effect,” said CSA President and Chairman of the Board, Chris Nenzani. “CSA will exercise its rights until such time that it is reasonably of the opinion that the WPCA administrative and financial affairs are being conducted according to best practice and that the association can assure equity partners and stakeholders that projects currently underway will unfold as planned.”
Earlier this year, the WPCA announced a partnership with financial services group Sanlam to build four new offices at Newlands. The offices will be leased, with Varsity College earmarked for one of the buildings.
The development, which has started, will cost approximately R750 million. Sanlam and the WPCA will reportedly cover 51 and 49% of the costs, respectively.
“CSA’s suspension decision is directly related to the WPCA’s ongoing building project at Newlands. We have plans to deal with this over the next two or three weeks,” WPCA CEO Nabeal Dien told Club Cricket SA.