SASCOC President Gideon Sam has claimed the organisation has already made changes ©Getty Images

A damning report into the South African Sports Confederation and Olympic Committee (SASCOC) has had a "negative impact" on the organisation's ability to function, President Gideon Sam has admitted as he claimed the body had already started to implement the recommended changes.

Sam vowed the embattled organisation would continue its improvement efforts after the Ministerial Inquiry cited several major concerns with SASCOC.

It painted a bleak picture of the body, claiming it is factional and dysfunctional, fails to meet governance compliance standards and wastes money.

The report warned that factionalism had rendered the SASCOC Board dysfunctional, corporate governance and compliance controls were absent, finances had been wasted on litigation among employees and leaders, and senior executives had received excessive travel benefits while travelling to international sporting events.

The inquiry was commissioned after Sam, former chief executive Tubby Reddy and other senior members of the SASCOC leadership were accused of a range of indiscretions, from mismanagement of funds to ignoring administrative processes. 

Speaking at the SASCOC Annual General Meeting today, Sam insisted the organisation would repair its reputation but called on the members of the organisation to be "constructive and progressive and not obstructive and argumentative".

He conceded SASCOC's ability to execute its roles and duties "has somewhat been eroded in the last 18 months".

"Our operational efficiency has been negatively affected by decreasing revenue," Sam told delegates.

"We are on record as having welcomed the inquiry even though we had question marks on how it came about.

The SASCOC President addressed the report at the AGM in Johannesburg ©SASCOC
The SASCOC President addressed the report at the AGM in Johannesburg ©SASCOC

He added: "None can deny that the existence of such an inquiry rightly or wrongly had a huge negative impact on our reputation, as our corporate governance and public trust was called into question.

“All of this has had a negative impact on the organisation’s ability to perform its functions and caused some confusion and paralysis in the functioning of SASCOC."

The Sport and Recreation Act of 1998 needed to be amended to clarify the role of SASCOC in relation to the Department of Sport, South Africa's Sports Minister Thokozile Xasa said following publication of the report. 

The SASCOC Board, Xasa added, needed to be made of members without direct links to existing sports governing bodies in the country. 

There should also be three independent positions at all times on the Board - the President, an accountant and a commercial lawyer - and these appointments would need to be made by an independent committee. 

In addition, no Board member would be able to serve for longer than two four-year terms, while the President would earn a monthly retainer and not be considered a full-time position.

"Let me remind you once more, that we have begun the change process already, way ahead of this report being released," Sam added.

"We started the organisational reconstruction and modernisation of SASCOC. 

"We must in considering the above be constructive and progressive and not obstructive and argumentative."