The Valke rugby union could face legal action from trade union Sports Employees Unite after failing to pay both player and staff salaries in July.
In a release on Wednesday, SEU chief executive Piet Heymans expressed his concern that the union had not communicated anything about its financial position and did not notify any of its employees that salary payments would not be made this month.
‘Today is the 29th of the month and Valke employees are usually paid on the 25th of the month,’ Heymans said. ‘No communication has been forthcoming from the acting [Valke] CEO, Ettiene de Lange, regarding the situation and this non-communication by management indicates its lack of respect and concern about the well-being and livelihoods of its employees.’
The matter has been communicated to both SA Rugby and players’ union MyPlayers.
It appears that a legal battle could be on the cards as Heymans added that Valke could be held liable for debts incurred by the company.
‘Section 77 of the Companies Act addresses this personal liability and explains that where a director knowingly carried on the business of the company recklessly or with the intent to defraud creditors or other stakeholders such as its employees, he or she shall be held personally liable for any loss incurred by the company,’ Haymans added.
‘Section 214 of the act goes even further to provide for criminal liability for those directors of a company which is being traded recklessly.’
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