RELEGATION-threatened National First Division club Moroka Swallows is about R40-million in debt and losing R200 000 of its monthly PSL grant to the tax man, the Sunday World has learned.
As the club ’ s financial woes deepen every month, the battle for power between Leon Prins and other shareholders who have wanted him out for years continues.
Prins resigned last year as CEO of the Dube Birds, but says his resignation was withdrawn and he ’ s been working behind the scenes with Sipho Xulu at the forefront. According to board member and former interim chairman Charles Makhubu, Prins “owes people millions ” and he said the Dube Birds might as well be declared insolvent. He said it would take a miracle to get the club out of the financial mess.
Players and staff have not received full salaries since October.
As if that ’ s not enough, the club has a garnishee order from the South African Revenue Service for R200 000 of the R350 000 grant which Swallows get from the Premier Soccer League, sources said.
Swallows, relegated from the PSL last year, are bottom of the NFD log and face the added embarrassment of being relegated twice in two seasons.
Prins confirmed Swallows owed money.
“Yes, the club is in debt. It ’ s tough to move from the PSL to the NFD, but we will deal with it and we ’ ve made provision for players to be paid.
“That ’ s all I will say,” Prins said.
He also attacked Makhubu.
“He was convicted of fraud so I would not even give him the time of day. You cannot be a chairperson or a director of a company if you have a criminal record.”
"All will be well"
Makhubu denied Prins ’ s claims. “If he has that information on me, then it ’ s fine. But my concern is Swallows. I have been with this club for so long and it ’ s never been in this state.”
Swallows captain Tshepo Moloto said he could not remember when he last received a full salary.
“That I don ’ t remember. I think it was about two or three months ago.”
The financial mess led to the departure of Siyabonga Nomvethe, who stayed loyal to the team when they got relegated but decided to leave earlier this month for AmaZulu.
“It ’ s not a secret that the team is in financial strain at the moment, where we either get paid half of our salaries or we do not get paid at all,” Moloto said.
“We have families and a lot of players are breadwinners. Players need to get to training and need to eat.
“But management has assured us all will be well. ”
The players are not the only ones suffering. An employee, who spoke on condition of anonymity, spoke of his struggle.
“We have been going without a salary since October. People do not go to the office. If you go, then there is nothing to do. We do not even have tea bags there. We cannot even use the phones. They only receive calls.”