“End the SARU Administration because Western Province Rugby is nobody’s Cash Caw,” says a faction of the representatives planning to protest outside of the DHL Stadium on Saturday. However, SARU says the claims made by the protestors, which include “individuals which traded WPRU to the brink of bankruptcy” are “misleading”.

Protesters want the power to return to WPRU

The protest will include members from Paarl Rugby, which called on people to gather at DHL Stadium at noon on Saturday afternoon. There, they will protest and picket against the ongoing SARU administration of WPRU.

In a statement released by the so-called “Rugby People of the Western Cape”, they want the administration to end because:

• They have seen a prolonged administration bring an end to the rugby traditions in the Eastern Province and Border, with the best talent skimmed for other Unions;

• A one-year Administration is already deep in its second year, with even our Constitution made worthless;

• They are seeing a complete deviation from the agreed plan between WP and SARU about the disposal of Newlands for a sustainable and equitable future for Club and Franchise rugby in the Western Province;

• Every day that goes by under SARU’s Administration means more INTEREST payments for FLYT, more COST payments for SARU, and less money for WP Rugby;

• The ominous signs are that the first portion of the income from the Newlands transaction (about R25 million) that we earmarked for the schools and clubs has already been promised to Galetti as fees to sell Newlands; and
• They want the Administration to end because SARU does not understand that rugby in the Western Province is historically tied to the fight for justice, against apartheid South Africa AND apartheid Israel!

Most WP Rugby clubs don’t support the protest

It is, however, the opinion of the respected Rugby-administrator, Kevin Kiewits, that most rugby clubs in the Western Province are against the Protest action. Kiewits is a lawyer and president of the Tygerburg Rugby Club.

SARU hits back with damning truth

In a statement released by SARU as an “open letter”, they noted that they expect the protesters, but wished “to remind the rugby community of certain facts”.

“The claims now being made by individuals – some of whom were part of the executive which traded the entity to the brink of bankruptcy and now wish to reclaim control – are erroneous, misleading, and needlessly distracting,” said the statement.

SARU also included a timeline of events that brought about “appropriate application” to take the power of the “dysfunctional union.

Below is the timeline taken from the statement:

2019

• WPRFU signed heads of agreement with Investec’s Property division for the redevelopment of the Newlands stadium. Investec advanced an R50-million loan to the WPRFU.

2020

• WPRFU declined to sign the final documents to conclude the sale of Newlands development rights to Investec.
• WPRFU received R112m Flyt Property (secured on 11 properties owned by the Union), which was appointed as developers of the Newlands.
  • Notwithstanding the value of the loan to repay the previous loans; it was secured by bonding the properties to the value of R250m, encumbering all the properties (worth almost R450m) without performing a due diligence and exercising its duty of care;
  • WPRFU’s auditors highlighted serious concerns regarding the arrangement.
  • The WP executive failed to de-risk the organisation and did not act with the duty of care by not conducting a formal due diligence exercise.
• Flyt, via its parent company Dreamworld, paid R52.97-million to Investec Bank and R57.76-million to Remgro to clear WPRFU’s debts.
• Six WPR board directors resigned or were removed from the board in October.
• The players met the Union leadership in November to express their concerns
• Also, in December Flyt declared a dispute with the WPRFU over the valuation of Newlands.

2021

• Dream World (Flyt) filed a suit against the WPRFU in the Western Cape High Court, claiming R388m in damages and the repayment of its R112-million loan plus interest.
• A term sheet was signed with Staytus by a member of the Exco, without performing a formal due diligence exercise and once again failed in its duty of care, furthermore breaching Clause 13 of the WP constitution and failing to get a mandate from the General Council.
• In June SARU, deeply concerned about the WPRFU’s operations – established a joint “Steering Committee” with WPRFU – comprised of representatives of both organizations to assist in managing the mounting legal and financial challenges
• In September SARU exited the Steering Committee because of a lack of transparency among WPRFU’s officials, making it impossible for SARU’s representatives to perform any useful function.
• Also in September the WPRFU President established what was described as a “war room” of ad hoc appointees of his choosing tasked with resolving WPRFU’s issues.
• Five members of the WPRFU executive committee – including the vice president – filed an urgent application at the Western Cape High Court to have the president removed.
• In October, the SARU Executive Council of SARU determined that the WPRFU failed to meet the requirements of Clause 29 of its constitution. Western Province Professional Rugby was in a terrible financial position, the Union’s auditors, BDO Inc., had noted several reportable financial irregularities and Western Province Rugby was facing several legal battles, was unable to pay SARS or salaries and was in imminent danger of being liquidated. SARU was left with little choice other than to take the WPRFU into administration.

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