Cape Town - The Border Rugby Union
has been placed under provisional sequestration after the High Court of South
Africa (East London Circuit Local Division) decided in the favour of the South
African Rugby Players Association (SARPA).
SARPA lodged an application on March 29 for the sequestration of the union.
The Border Rugby Union will now hand over their operating activities to the
liquidator, after they have failed to comply with the court order to submit the
relevant documentation to prove why they should not be sequestrated.
The union has failed intermittently since December 2017 to make full salary
payments to players and furthermore, did not make the necessary pension fund and
medical aid payments as agreed.
After written demands issued by SARPA, the Border Rugby Union failed to meet
its commitments to the players, attributing these failures to cash flow
challenges and from there the action was instituted.
After the order was granted, Eugene Henning, Managing Director of the
players’ organisation, said that: “Although we had to take legal action against
the Border Rugby Union, we are still of view that this result is not in the
best interest of South African rugby, but the players had no other option but
to take action on this matter. On behalf of the players, SARPA will now liaise
with the liquidator going forward to see what can be recovered from the process
for the players”.
The return date when the court will determine to grant the final order is June 26, 2018.