Have the Kings been funded by taxpayers?
Players have gone on strike twice this year over unpaid salaries – in June/July and again in September.
The Eastern Province Kings management have now been issued with an ultimatum by the South African Rugby Players Association about further action over unpaid salaries for October.
It is claimed the Kings were 'rescued' when taxpayers' money was used to pay outstanding salaries.
Kobus Gerber, of the Nelson Mandela Bay Ratepayers Association and a spokesman for trade union AfriForum in Port Elizabeth, accused the Eastern Province Rugby Union of using ratepayers money to pay the running costs of the Kings and the union.
He went as far as saying "this been ongoing for a number of years".
Gerber claims an investigation into Access Management, the NMB Stadium operator, brought to light that the NMB Metro is channelling ratepayers' money through Access to pay the running costs of the union and pay players' salaries.
The EP Rugby Union denied any wrongdoing and said all their financial transactions are based on 'sound business ethics'.
Vernon Stuurman, an executive member of the EPRU and standing in for President Cheeky Watson, said the union was a "responsible anchor tenant of Access Management".
Watson is currently abroad, where – according to an earlier Kings statement – he will be speaking to a sponsor about the delayed funding.
Access Management have also denied any wrongdoing and confirmed that it was contracted by the Nelson Mandela Bay Metro to operate the stadium and to assist its "anchor tenants" [i.e. Kings] in whatever way possible.
And Access also confirmed they purchased the commercial rights in respect of the EP and Southern Kings from the Eastern Province Rugby Union.
Gerber said he had a meeting with Watson before his departure, in which they addressed numerous issues – including "the upcoming High Court Application against the irregular re-appointment of Access Management".
"AfriForum has been holding back on the High Court application against Access in order to provide Watson with the opportunity to secure a sponsor for EP Kings," Gerber said in a statement issued to rugby365.
"This would have ensured that rugby and soccer would continue undisrupted in NMB Metro, while court proceedings are underway.
"We entered into negotiations with sponsors to prevent the EP Kings losing players for next year's [expanded] Super Rugby competition."
Statement by Vernon Stuurman, executive member, EPRU:
TUESDAY, 10 NOVEMBER 2015
"The Eastern Province Rugby Union has noted media reports on allegations made by the Ratepayers Association and AfriForum Port Elizabeth of money being paid to Access Management to fund the EP Kings.
"As the finance referred to is said to have come from the Nelson Mandela Bay Metropolitan Municipality, EP Rugby regards itself as a major stakeholder playing a particular part in the space of participatory governance.
"As a responsible anchor tenant of Access Management, we take pride in our business relationship with them which is built on sound business ethics.
"Anyone who wishes to imply differently should do so on their own."
Access Management statement in response to Nelson Mandela Bay Ratepayers Association allegations
November 10, 2015: Access Facilities and Leisure Management Pty (Ltd.) ("Access Management") acknowledges having read the statement issued by the Nelson Mandela Bay Ratepayers Association titled EP Kings cash crisis is true and real on 09 November 2015.
Access Management wishes to confirm that it is contracted by the Nelson Mandela Bay Municipality ("the Municipality") to operate the Nelson Mandela Bay Stadium ("NMB Stadium") on its behalf, and to provide support to the Anchor Tenants (namely EP Kings Union and Chippa United Football Club).
This contract was until June 2015 and was extended by the Municipality for a year or until a new operator is appointed, whilst the tender process for the awarding of the stadium operator contract is being prepared by the Municipality.
All assistance given by Access Management to either of the NMB Stadium's anchor tenants is – and has always been – rendered in line with the stipulations of the Operator's contract and such commercial agreements approved by and entered into with the Anchor Tenants from time to time.
"Any funds utilised by Access Management in the running of the NMB Stadium, are contained in an expense budget which is presented to and approved by the Municipality.
"The NMB Stadium operator is, contractually an Agent of the Municipality and therefore operates the NMB Stadium budget on behalf of the Municipality.
"The documentation which is being sought by NMBRA and AfriForum as referred to in their statement, is in the possession of the Municipality."
Statement by Kobus Gerber, Nelson Mandela Bay Ratepayers Association and Afriforum Port Elizabeth:
"Re: EP Kings cash crisis is true and real.
"The NMBRA and AfriForum PE conducted an investigation into Access Management, the NMB Stadium operator, and it came to our attention that the NMB Metro is channelling ratepayers money through Access to pay the running costs of the EP Kings and the players and that this been ongoing for a number of years.
"We has had a number of meetings with some EP Board Members and has given them proof of ratepayers money being paid over to Access for the Kings from the Metro.
"I also had discussions with Danny Jordaan [the mayor of Nelson Mandela Bay Metro] regarding rugby and soccer in the Metro and he shared our concerns and agreed to assist in finding a solution to ensure that the financial situation of the EP Kings receives urgent attention. I have also been in contact with SARU and I met with Cheeky Watson last Thursday to discuss the following:
1) The financial situation of the EP Kings and the potential sponsorship that he has been promising since June this year;
2) The reason for the delay with the sponsorship and we have insisted on proof of the sponsor which he refused to give;
3) When will the outstanding salaries to players and officials be paid of which some are up to three month in arrears;
4) The reason for him using ratepayers money to pay running costs and the salaries of the EP Kings for a number of years;
5) That we are busy negotiating with sponsors and would he step down to allow a new sponsor to take over;
6) The upcoming High Court Application against the irregular re-appointment of Access Management and the implication of such application on the future of EP Rugby.
"Cheeky Watson did not handle the meeting well and told me that he will discuss this with the EP Board Members on his return from Australia where he will be attending a family wedding. He never mentioned that he will be meeting any sponsor as quoted in the media.
"AfriForum has been holding back on the High Court application against Access in order to provide Watson with the opportunity to secure a sponsor for EP Kings.
"This would have ensured that rugby and soccer would continue undisrupted in NMB Metro while court proceedings are underway. We entered into negotiations with sponsors to prevent the EP Kings losing players for next year's Super Rugby series.
"Oregan Hoskins' recent visit to Port Elizabeth.
"Hoskins said he had full confidence in the current leadership under EP Rugby President Cheeky Watson: 'We will not deny that there have been cash flow challenges this year, but what is often overlooked is that we have always met these challenges head on, and have been able to overcome them'.
"He [Watson] lied to Hoskins and did not overcome the financial challenges, he received help from the Metro by using ratepayers money."
Jan de Koning
@King365ed
@rugby365com
