An urgent application for the liquidation of Border Rugby has been lodged at the high court.
The application, filed by Border Rugby (Pty) Ltd, the business wing of the beleaguered union, lists insolvency as the main reason they seek liquidation.
In an affidavit signed by the union's president Pumlani Mkolo, who doubles up as director of the commercial arm, the company's liabilities are said to exceed its assets by over R11 million.
An independent auditor's report further revealed 'unlawful acts or omissions committed by persons responsible for the management of Border Rugby (Pty) Ltd, constituting reportable irregularities in terms of the Auditing Profession Act', according to The Dispatch.
Monde Tabata, who joined the union in an administrative capacity in 2014, says filing for liquidation is an intelligent decision.
'From 2014, the responsibilities of the company were absorbed by the union and therefore no one will be affected by the liquidation,' said Tabata.
Border Rugby (Pty) Ltd shut down three years ago and officially closed for business in November last year. Its employees, including coaches, players, administration and ground staff, were then employed by the union, who received funding from SA Rugby.
'Having a commercial wing which has not been operational for three years was not wise and it proved expensive for the union to have a business arm without a private sponsor.'
The South African Revenue Service (Sars) has agreed to write off some off the company's debt, but it is still unable to pay the R30,500 owed to the union.