Daily Dispatch

Border Rugby Pty files for liquidatio­n

Bleak picture as liabilitie­s R11m more than assets


BORDER Rugby (Pty) Ltd, the commercial arm of the Border Rugby Union, has asked that it be liquidated because it is insolvent.

This is contained in a high court applicatio­n by Border (Pty) Ltd, which paints a bleak picture of the company’s finances.

In the founding affidavit signed by BRU president Pumlani Mkolo, who is also director of the beleaguere­d business arm of the union, the applicant’s liabilitie­s are said to exceed its assets by over R11-million.

This is confirmed by an independen­t auditor’s report, which further red-flagged Border for “certain unlawful acts or omissions committed by persons responsibl­e for the management of Border Rugby (Pty) Ltd, which constitute reportable irregulari­ties in terms of the Auditing Profession Act”.

In the same court papers, it emerges that in July this year, Red Alert won a court order for Border to pay a debt of more than R110 000 owed to the security company, with interest at a rate of 15.5% dating back to March 2013.

Border Rugby administra­tor Monde Tabata, who was appointed by SA Rugby Union (Saru) in 2014 to stabilise the union, believes the applicatio­n for liquidatio­n is a “conscious and intelligen­t decision”.

He said this was because the commercial wing of the union had been a white elephant since 2014. “From 2014 already, the responsibi­lities of [the company] were absorbed by the union, including its employees, and therefore no one will be affected by the liquidatio­n.

“Having a commercial wing which has not been operationa­l for three years was not wise, and in any case it proved expensive for the union to have a business arm without a private sponsor.”

This view was backed by Mkolo in his affidavit, in which he states several reasons behind the applicatio­n, including:

● Border Rugby (Pty) Ltd closed its doors during November last year and no longer trades;

● All its employees, including coaches, players, administra­tion and ground staff, were then employed by the union;

● Its financial position was “precarious” in the financial year that ended last December;

● Most of its funding was made available to it by Saru;

● BRU believed the Border geographic­al area was “simply not able to sustain a profession­al rugby arm without outside funding”;

● Liabilitie­s exceeded assets by R11 080 004;

● SARS had agreed to write off substantia­l sums of its debt; and

● The company owed the union R305 000, “which it cannot pay”.

 ??  ?? HOT SEAT: Border Rugby Union president Pumlani Mkolo. BRU’s commercial arm has filed for liquidatio­n
HOT SEAT: Border Rugby Union president Pumlani Mkolo. BRU’s commercial arm has filed for liquidatio­n

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