Last week’s Bok comeback might have ramped up the feelgood factor for South African rugby fans, but whoever runs the books over at the Western Province Rugby Football Union (WPRFU) isn’t going to be basking in those vibes.
That ship has been sinking for a while now, with Thelo Wakefield (above) the destroyer-in-chief, but the temperature has been cranked up more than a few notches this week.
Huff Post SA with those details:
Remgro Sport Investments has given the Western Province Rugby Football Union (WPRFU) until July 6 to make arrangements to pay back loans of nearly R44-million — if South Africa’s oldest union is unable to do so the Stellenbosch-based company will immediately call in the multimillion rand loans…
The company, a division of Johann Rupert’s diversified investment company Remgro, rescued the country’s oldest rugby union in 2016 when it faced imminent collapse after an investment deal went awry. The WPRFU has since made numerous promises to Remgro to repay the money it was lent, but has seemingly not kept them. The loans were used to pay staff and players.
It’s ‘pay back the money’ all over again, but instead of JZ it’s Thelo.
Remgro has tried playing nice, but now they’re turning the screws:
Remgro has had enough of the WPRFU and it leadership kicking for touch, and has sent a strongly worded letter of demand to the union setting out four requirements that have to be met within the next few weeks. In the letter, Remgro says it “kindly” attempted to reach an agreement with the WPRFU “in the spirit of collaboration” and has been accommodating of the union’s troubles “for the past 18 months”.
If the WPRFU does not submit to Remgro’s demands, the company says it will use “each and every legal remedy at its disposal without further notice to the union” to recover the loan.
Despite Remgro’s strong words, Wakefield has gone on the offensive, going as far as telling the union’s shareholders that they shouldn’t break a sweat:
[He said claims that] that creditors are “closing in” on the union is “misleading”, “factually incorrect” and “speculative”. Wakefield’s letter of denial was sent to clubs the day after lawyers ENSAfrica sent the letter to the union with the subject line “letter of demand”…
“Remgro has not recalled their 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, that its creditors are closing in …” Wakefield’s letter to the union’s clubs reads.
That “this is fine” whilst the house burns down meme comes to mind.
Oh, and Remgro is coming for their assets:
[Remgro, via ENSAfrica] insists that the WPRFU tables its letter of demand at a meeting of the union’s general council [to occue before June 24] and that it agrees to a document containing a series of resolutions, which includes an agreement that mortgage bonds on a number of WPRFU properties in Cape Town be registered in favour of Remgro
Wakefield says that once the matter has been resolved, the WPRFU will issue a statement.
Not that many of us will be inclined to believe it.
[source:huffpost]
