Kings’ finances probed in court

An inquest into the financial state of the EP Kings started in the Port Elizabeth Magistrate's Court on Monday.

This is mainly to determine whether the board of directors traded in a reckless and negligent manner which resulted in the EP Kings not being able to pay staff members and creditors because the union ran into millions of rands in debt.

The first main issue being probed is why EP continued to contract players at inflated salaries when the franchise was already insolvent. And secondly, what had happened to the union's television rights fees of R28 million after 20 of its players signed 24-month contracts with SA Rugby CEO Jurie Roux's company, SA Rugby Travel.

Roux and his SA Rugby colleagues Oregan Hoskins (former president), Mark Alexander (acting president) and Basil Haddad (chief financial officer) as well as Sanzaar CEO Andy Marinos and EP president Cheeky Watson are all expected to be called to testify.

The case is being heard by an independent liquidator, but if the board of directors are found to have acted in a negligent manner, criminal charges may ensue and creditors recommended to sue the board members in their personal capacity, as EP's assets are currently valued at only R69 000.

Photo: Michael Sheehan/Gallo Images 

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