The cash-strapped Border Rugby Union (BRU) was sued yesterday by the South African Rugby Players Association (Sarpa), which is representing the 24 professional rugby players employed by Border.
It also emerged from court papers seeking to liquidate the BRU, that the BRU’s payments of the squad’s medical aid and pension contributions were so erratic and in arrears that they had refused to play any more matches.
Last night Saturday Dispatch called team manager David Ruiters who confirmed that a curtain-raiser match against Free State today was “cancelled” on Monday. He declined to say why.
Sarpa applied for the liquidation of the union in the Bhisho High Court sitting in East London yesterday.
In its papers before high court Judge Belinda Hartle, Sarpa said the BRU had for the past four months intermittently failed to make timeous contributions towards their players’ pension fund, income tax and even their medical aid premiums.
The application was postponed to April 17 to allow BRU to file an answering affidavit and Sarpa to reply.
It was agreed by both legal teams, in Hartle’s chambers that the BRU will file their answering affidavit, “if any”, by April 11, while the Sarpa must file their replying affidavit by April 13.
Sarpa’s general secretary Eugene Henning saidBRU’s financial position was “dire” and appeared “irreversible”.
“This will only worsen in time, in that the few assets that it does own are reducing in value, while it remains unclear as to what has become of the funds that have come into its possession over the past 12 months,” Henning said.
He urged the court to appoint someone to look after the union’s affairs, saying: “It is imperative for a trustee to be appointed in terms of the Insolvency Act.”
Henning said: “Although bringing the liquidation application is a no-win situation for everyone, it remains the only logical action for the players to take”.
He said since December the players’ union had been frustrated by the BRU’s refusal to reply to written demands to meet its financial commitments to the players. Henning said Sarpa had been informed that the “players would be obliged to withhold their rugby-playing services until the medical premiums have been paid in full”.
According to Henning’s affidavit, the BRU failed in March to pay R113600 towards players’ benefits.
That amount is made up of R62762 a month owed to the players’ pension funds and R50913 in contributions to their medical aid fund.
In an an e-mail thread between Sarpa and BRU financial manager Unathi Kawuleza, which form part of the case bundle, Kawuleza blamed the failure to make players’ payments on the union’s “cash-flow challenges”.
BRU director Dumisani Mhani said he was “not in a position to respond” to the BRU’s financial problems and referred queries to BRU president Pumlani Mkolo who, together with Kawuleza, could not be reached by the time of writing yesterday.
Players sue Border Rugby
It also emerged from court papers seeking to liquidate the BRU, that the BRU’s payments of the squad’s medical aid and pension contributions were so erratic and in arrears that they had refused to play any more matches.
Last night Saturday Dispatch called team manager David Ruiters who confirmed that a curtain-raiser match against Free State today was “cancelled” on Monday. He declined to say why.
Sarpa applied for the liquidation of the union in the Bhisho High Court sitting in East London yesterday.
In its papers before high court Judge Belinda Hartle, Sarpa said the BRU had for the past four months intermittently failed to make timeous contributions towards their players’ pension fund, income tax and even their medical aid premiums.
The application was postponed to April 17 to allow BRU to file an answering affidavit and Sarpa to reply.
It was agreed by both legal teams, in Hartle’s chambers that the BRU will file their answering affidavit, “if any”, by April 11, while the Sarpa must file their replying affidavit by April 13.
Sarpa’s general secretary Eugene Henning saidBRU’s financial position was “dire” and appeared “irreversible”.
“This will only worsen in time, in that the few assets that it does own are reducing in value, while it remains unclear as to what has become of the funds that have come into its possession over the past 12 months,” Henning said.
He urged the court to appoint someone to look after the union’s affairs, saying: “It is imperative for a trustee to be appointed in terms of the Insolvency Act.”
Henning said: “Although bringing the liquidation application is a no-win situation for everyone, it remains the only logical action for the players to take”.
He said since December the players’ union had been frustrated by the BRU’s refusal to reply to written demands to meet its financial commitments to the players. Henning said Sarpa had been informed that the “players would be obliged to withhold their rugby-playing services until the medical premiums have been paid in full”.
According to Henning’s affidavit, the BRU failed in March to pay R113600 towards players’ benefits.
That amount is made up of R62762 a month owed to the players’ pension funds and R50913 in contributions to their medical aid fund.
In an an e-mail thread between Sarpa and BRU financial manager Unathi Kawuleza, which form part of the case bundle, Kawuleza blamed the failure to make players’ payments on the union’s “cash-flow challenges”.
BRU director Dumisani Mhani said he was “not in a position to respond” to the BRU’s financial problems and referred queries to BRU president Pumlani Mkolo who, together with Kawuleza, could not be reached by the time of writing yesterday.
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