South Africa Rugby explains Roux situation
UNLIKE CSA, SA Rugby (Saru) has been a superbly run organisation for years under CEO Jurie Roux. But after losing a separate legal battle and being ordered to pay damages in the amount of R37-million to Stellenbosch University (Maties) last December, his job at Saru has been called into question.
Roux was found to have made payments from unauthorised cost centres when he ran the Maties Rugby Club finances between 2002-2010. Although the arbitration ruling stated that Roux never personally benefited from the payments, the arbiter agreed that Maties had suffered damages. A figure of R37-million was demanded.
The matter is now heading to the Western Cape High Court, and possibly even the Constitutional Court, as Roux continues to contest the outcome.
Saru president Mark Alexander told a Parliamentary Sports Portfolio Committee on Wednesday that the organisation had been aware of the legal process for most of Roux's 11 years at Saru. Alexander also pointed out Roux's stellar service to Saru and that he had paid for his entire legal defence against Maties.
Alexander was adamant that Saru had managed the situation by the book and that they had no legal grounds to suspend Roux.
“It must be remembered that this happened with his [Roux's] previous employer and not with SA Rugby,” Alexander told the members of the portfolio committee.
“It is not a cut and dried matter as if he worked for SA Rugby; there are other options we had to take and we have to follow due processes. We'll wait for our attorneys to come back to us and we'll follow their advice, because it wouldn't be a normal suspension.
“There have been similar instances elsewhere, but you can't suspend a person for something that happened in a different organisation. There were no allegations when he was employed.
“At that point in time [when he was employed by Saru in 2011], there were no allegations of legal action against him when he was appointed,” Alexander said.
“Three years later, after his excellent service at SA Rugby, Mr Roux advised the president at the time of the legal action being taken against him [by Maties].
“The legal advice we took at the time was clear on it being premature to suspend the CEO at the time, and more legal advice we took on pointed us to waiting until the case has been resolved.
“We took that to our attorneys and checked whether we applied our fiduciary responsibilities and the necessary corporate governance.
“It is Mr Roux's case and SA Rugby has nothing to do with his bills. What we're paying for is the advice we're getting from our lawyers. We're not paying for his legal fees.”