As if the arrest of former Eastern Province Rugby Union president Cheeky Watson wasn’t bad enough, more drama involving the embattled Southern Kings Super Rugby franchise has emerged.
The liquidators of the EP Rugby (Pty) Ltd are now in the process of issuing a summons to recover an amount of R14 million.
Rugby specialist website rugby365.com reports that the liquidator, Danie Acker, says that money was “redirected to other receivers after the date of liquidation”.
In a liquidation process, only the liquidator appointed has the power to decide how any remaining funds or assets in a company should be utilised.
Acker is in the process of winding up the liquidation, adding that all parties are co-operating.
But the “missing millions” are being sought. “An application for the recovery of R14 million – owed to the liquidated company by the Eastern Province Rugby Union – is in the process of being finalised and will be issued this week,” Acker said.
An offer from an American rugby consortium to take over Kings rugby was being considered at one stage, but the deal appears to have fallen through.
“Although the liquidators negotiated with various interested buyers, no acceptable firm offers were forthcoming,” Acker said.
“A summons is in the process of being issued for recovery of monies redirected to other receivers after the date of liquidation.”
Acker said that he hoped to avoid litigation if possible.
“We will entertain negotiations and settlement options with the relevant parties, but above processes are necessary to expedite recovery,” he said.
The latest development in the ongoing Kings saga comes hot on the heels of the dramatic arrest of Watson and three other co-accused by the Hawks in Port Elizabeth last Friday.
Watson, who stepped down as EP Rugby Union president at the end of February, was released on R2 000 bail at the Port Elizabeth Magistrate’s Court along with Nadia Gerwel, Andrea Wessels and Mandisa Mkaza, after they were charged on 43 counts of theft, fraud, corruption, money laundering and forgery involving an amount of R12 million.
The matter relates to “circumventing the procurement process between the Nelson Mandela Bay Municipality, National Treasury and Access Management” with regards to funds that went missing from the municipal coffers earmarked for the Integrated Public Transport System (IPTS).
Watson described the charges as “malicious, and we will get to the bottom of this”.
The four accused are expected back in court on May 3. – African News Agency (ANA)
