Marais holds on, but to what?

Western Province Rugby Football Union president Zelt Marais continues to cling on to power but his bigger challenge will be to avert the union's impending financial meltdown.

Marais has pulled off a few Houdini acts over the past few weeks, including attempts at having him removed through a vote of no confidence and being declared a delinquent in court.

What isn't going away, however, is Western Province's September 30 deadline to honour their financial obligations to Flyt/Dream World, who hold the title deeds over several properties of WP.

Ebrahim Rasool, chairperson of WP Professional rugby, broke down the stark reality facing the union. “For Flyt to return our title deeds and stop all damages claims, they want repayment of the (R113m) and interest (at 22%) and compulsory dividend of R32m after 42 months.”

A deal has been brokered to ease the immediate pressure on the union, but Marais is opposed to the agreement to make Staytus Cape (Pty) Ltd the union's new benefactor, which also includes a settlement arrangement with Flyt.

Marais accused of blurring the lines

This has frustrated Rasool, who accuses Marais of obfuscating his responsibilities as president. “We must distinguish between the WP Rugby Pty (Ltd) board and the union of which I am the president. I'm responsible for clubs and schools,” said Marais.

“We are the shareholder, and if the company can't put something together [a deal] we as the shareholder will do everything in our power to preserve our asset.”

Marais said he was unaware of a September 30 deadline to meet their obligations.

“Unless someone has negotiated behind my back to do a deal. We are not aware that [the] debt is due and payable. That subject is still sub judice. It is under a legal process. Unless some court ruled in our absence, but [the] hearing will probably only commence in November, or somehow,” said Marais, who will basically argue the agreement with Flyt is not binding.

Marais tried to reassure that he had a deal in place that will be the panacea to WP's financial woes.

“We are speaking to a number of interested parties, especially on the equity side. We are definitely in negotiations in terms of the equity. We are shackled at the moment with an agreement that was signed and is [the] subject of discussion.”

However, in the absence of a signed and sealed agreement, Marais, by contesting the Flyt deal in court, will likely drag the union further into the mire.

“It is very disappointed for me. For us,” said Marais hesitantly. “There are people driving a certain agenda. That is the minority within it.

“If legal proceedings start they will only start in three months and it could go on for a year.

“We would not want it to happen that way but we will find a settlement earlier. We never took the whole thing to court actually. WP has never taken anybody to court. Never ever. It is protecting its assets and its rights, actually. If anybody takes WP to court we will defend it at all cost. If we don't do anything we lose everything. It was on the insistence of myself, actually, that we are protecting our assets.”

Rasool is hoping the South African Rugby Union, to whom WP is affiliated, will step in. “I would prefer them to place WP under administration rather than us placing ourselves in business rescue.”

The former Western Cape premier, who last week described Marais as a megalomaniac, painted the picture of a man with cold and calculated tendencies.

“I have seen characters in my political life but I have never seen anyone with ice in their veins like Zelt Marais,” said Rasool.