Johann Rupert’s Remgro circling Western Province over unpaid loans
The union was bailed out by the company after its professional arm went bankrupt in December 2016 but now they want the R44 million back.
Thelo Wakefield, president of Western Province. Photo: Grant Pitcher/Gallo Images.
The dire state of South African rugby’s finances is once again in the spotlight as embattled Western Province struggle to stay afloat.
According to the Huffington Post, the Western Province Rugby Union (WPRU) have just over three weeks to repay Johann Rupert’s Remgro a massive R44 million in loans.
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The company, which was also an equity partner, had bailed out the WPRU in December 2016 after its professional arm, WP Rugby (Pty) Ltd, was declared bankrupt by the Western Cape High Court.
Remgro provided loans of R7.51-million, R7.51-million, R19-million and R9.88-million to the union over the course of that year’s November and December to pay salaries.
Bafflingly, the WPRU had initially placed the professional arm up for sale before mysteriously buying it out themselves.
Remgro has now sent out a letter of demand to the union via its legal representative, ENSAfrica, despite “kindly (attempting) to reach an agreement with the WPRU in the spirit of collaboration” and accommodating the WPRU’s “financial troubles for the past 18 months”.
The company is said to be willing to use “each and every legal remedy at its disposal without further notice to the union” by seizing three WPRU properties as collateral for the loans.
Meanwhile, WPRU president Thelo Wakefield denies a breakdown in the relationship.
In a letter to clubs, he stated that “WPRU can confirm that former WP Rugby (Pty) Ltd shareholder Remgro has not recalled its loans and that WP Rugby is in regular contact with Remgro with regards to its outstanding indebtedness to Remgro. WP Rugby strongly denies that it is facing bankruptcy and that its creditors are closing in”.
The union is also dogged by a legal battle with a former commercial partner, Aerios, who is claiming R276 million in terms of lost advertising rights.
