City seeks answers from Saru

Rumours of bailout talk denied

Nelson  Mandela Bay mayor Danny Jordaan and acting city manager Johann Mettler have had a meeting with SA Rugby Union (Saru) bosses to try to get to the bottom of the financial headache threatening the future of the Eastern Province Rugby Union (EPRU).

The municipality wanted to know what measures Saru had put in place to protect the interests of EP Rugby and the Southern Kings.

The meeting, two weeks ago, followed an exposé by The Herald which revealed that the UK firm on which the EPRU was relying to bail it out of its financial crisis was owned by a bankrupt businessman.

Christopher Wishlade, of Integrated Sport, was named in court papers last month as the mystery equity partner who would supply a R100million cash injection to acquire a 49% stake in the EP Kings.

The meeting has given rise to questions about whether the city is planning to bail out the EPRU.

An insider claimed that Saru chief executive Jurie Roux had a meeting with Jordaan and Mettler in an attempt to get the municipality’s financial backing to bail out the union.

But Mettler said there was no such request from the union.

“The meeting did take place . . . at the [request] of the metro,” he said.

“The purpose of the meeting was for Saru to brief the metro on the status of the pending court applications, and the measures Saru has put in place to protect the interests of EP Rugby and the Southern Kings.

“At no stage did Saru request financial assistance from the metro, and the metro has not offered any.”

According to a senior municipal official, there was “absolutely no way” the metro could afford to bail out the EPRU.

Mettler said the municipality had a vested interest in the outcome of the court case as it relied on EP Rugby and the Kings as anchor tenants at the Nelson Mandela Bay Stadium.

“It is important for the metro to retain Chippa United, EP Rugby and the Southern Kings as anchor tenants to the stadium,” he said.

“We will observe proceedings closely and will consider any feasible proposal to retain these sporting codes for the Eastern Cape, and the metro in particular.

“We will work with Saru and all affected parties in this regard.

“For now, all eyes are on the due diligence report prepared by KPMG in respect of the sponsor identified by Saru, which is due to be released soon.”

Saru general manager for corporate affairs Andy Colquhoun confirmed the meeting had taken place, but refused to comment on the financial issues. “It is not in our mandate to do so,” he said.

About the business rescue plan, Colquhoun said that once the court had made a ruling, an announcement would be made.

Aggrieved rugby players took the EPRU to court earlier this year, saying they wanted it wound up and a liquidator appointed so its debts could be settled.

But at the 11th hour, lawyers for the EPRU claimed they had secured a sponsor to bail the union out. EPRU wants the players to agree to it being placed under business rescue.

The union, its representatives and the players are due back in the Port Elizabeth High Court in August.