STORM OVER SOUTH AFRICAN DEAL !
Mohammed Allie - BBC Sport. Cape Town.
South Africa's finance minister and the country's largest trade union have become involved in a dispute over the sponsorship of South Africa's Premier Soccer League (PSL). Last week Absa, the country's largest banking group, signed a deal with the PSL worth around $72 million over five years.
Widespread criticism has followed a proposal by the PSL's sponsorship committee that it receives a 10% commission on the deal, which could be shared between its members.
The committee consists of former league chief executive Trevor Philips, marketing consultant Peter Mancer, and club owners Irvin Khoza (Orlando Pirates), Kaizer Motaung (Kaizer Chiefs) and Mato Madlala (Golden Arrows).
Finance Minister Trevor Manuel led the attack with a strongly-worded letter to Absa in which he warned the bank not to pay the proposed commissions.
He pointed out that his portfolio includes taking responsibility for the country's financial institutions.
"My understanding is that individuals are elected to serve the interests of the sport, not in the expectation of acquiring personal fortunes," Manuel said on national radio.
Khoza says that his committee is entitled to commission payments.
Cosatu, the country's biggest trade union federation has also condemned the proposed payments saying the officials are elected to serve the sport and not to seek opportunities to enrich themselves.
Khoza expressed disappointment with Manuel for involving himself in their affairs.
After a PSL meeting on Tuesday, Khoza emphasised that while the committee would be within its rights to claim commission on the massive deal, it is not certain to demand a share of the money.
"No decision has yet been taken regarding payment of commission," he said.
Absa's head of marketing Louis von Zeuner said that the final sponsorship deal has not yet been signed, and that they will institute appropriate checks and balances to ensure that no individual benefits personally from the deal.
South Africa's finance minister and the country's largest trade union have become involved in a dispute over the sponsorship of South Africa's Premier Soccer League (PSL). Last week Absa, the country's largest banking group, signed a deal with the PSL worth around $72 million over five years.
Widespread criticism has followed a proposal by the PSL's sponsorship committee that it receives a 10% commission on the deal, which could be shared between its members.
The committee consists of former league chief executive Trevor Philips, marketing consultant Peter Mancer, and club owners Irvin Khoza (Orlando Pirates), Kaizer Motaung (Kaizer Chiefs) and Mato Madlala (Golden Arrows).
Finance Minister Trevor Manuel led the attack with a strongly-worded letter to Absa in which he warned the bank not to pay the proposed commissions.
He pointed out that his portfolio includes taking responsibility for the country's financial institutions.
"My understanding is that individuals are elected to serve the interests of the sport, not in the expectation of acquiring personal fortunes," Manuel said on national radio.
Khoza says that his committee is entitled to commission payments.
Cosatu, the country's biggest trade union federation has also condemned the proposed payments saying the officials are elected to serve the sport and not to seek opportunities to enrich themselves.
Khoza expressed disappointment with Manuel for involving himself in their affairs.
After a PSL meeting on Tuesday, Khoza emphasised that while the committee would be within its rights to claim commission on the massive deal, it is not certain to demand a share of the money.
"No decision has yet been taken regarding payment of commission," he said.
Absa's head of marketing Louis von Zeuner said that the final sponsorship deal has not yet been signed, and that they will institute appropriate checks and balances to ensure that no individual benefits personally from the deal.
BBC SPORTS REPORT.
Labels: South-Africa Capetown PSL Sponsorship Deal Sport Absa Cosatu Money Committee Commission
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