Guma settlement is 'old news' for Lions
The Golden Lions Rugby Union (GLRU) revealed on Thursday that they had reached a settlement with their former equity partner Guma Tac Group some time ago.
Acting GLRU CEO Ruben Moggee confirmed to this website that the out-of-court settlement was reached in mid-February already – which brought to an end the public spat between the rugby body and Guma.
It emerged in media reports on Thursday that Guma Tac Group had withdrawn an application to liquidate the union, but the truth is that the settlement was already reached three months ago.
“The settlement was reached in mid-February already,” Moggee told this website.
GLRU president Kevin de Klerk had claimed in an interview with this website in January that Guma’s court papers were “filled with many half truths” and denied claims of bankruptcy after allegations that the union wasn’t able to pay player salaries.
De Klerk always maintained that the GLRU had the money to pay, but the argument was how much was owed the Guma Tac Group .
The Guma Tac Group is jointly-owned by Robert Gumede and Ivor Ichikowitz and cut ties with the GLRU in June 2011.
Since the settlement was reached in February, Guma have become suspiciously quiet on the matter.
Asked if the settlement had affected the GLRU’s day-to-day functionality, Moggee said it was “business as usual”.
“Since February we have had a rash of injuries and have had to contract additional players such as [United States Eagles international] JJ Gagiano and [Stellenbosch star] Grant Hattingh,” Moggee told this website.
“We wouldn’t have been able to do that if the business wasn’t functioning normally [and there wasn’t money to bring in new players].”
Moggee revealed that because the settlement was reached out of court, he is not able to divulge the figure and repayment process that was agreed between the two parties.
“The question [before the court] was whether we would be able to pay them back, which we can,” Moggee said.
“If we were insolvent we would not have been able to successfully challenge the insolvency application.”
By Timmy Hancox
