SA Rugby defends decision to keep CEO Roux despite misappropriation of R37m

SA Rugby have stuck to their guns and defended the decision not to suspend CEO Jurie Roux despite an arbitrator having found he misappropriated funds from Stellenbosch University during his time with the institution's finance department. 

Roux lost an appeal in December against an arbitration ruling that ordered him to pay the university R37m.

The embattled CEO was found to have manipulated accounting systems during his time at the university between 2002 and 2010. Roux is accused of channelling millions of rand to the university's Maties rugby club, where he was chairperson.

This week the SA Rugby Union (Saru) advised that a review of the outcome of the appeal into the arbitration hearing between Roux and Stellenbosch University remains ongoing in the Western Cape high court.

SA Rugby made a virtual presentation to parliament’s portfolio committee on sports, arts and culture on Wednesday to account for the organisation’s operations.

SA Rugby president Mark Alexander said the body could not suspend Roux based on financial misconduct he committed at his previous employer. He said SA Rugby has sought and received five legal opinions that advised against Roux’s suspension.

“Mr Roux was employed by Saru in 2010 as CEO and at that point there were no allegations against him,” Alexander told the committee.

Alexander said Roux told the rugby governing body in 2013 that there was legal action against him.

“We then approached a legal mind at the Cape Bar for an opinion regarding the proposed suspension of the CEO and the response was that it would be premature to suspend the employee [Roux].”

Alexander said former president Hoskins sought another legal opinion and consulted the executive and in the end it was decided no action would be taken until the arbitration was finalised.

“That decision was taken to our general council on August 14 2014,” said Alexander.

In the midst of a cloud hanging over Roux, Alexander said the organisation decided to extend Roux’s contract to 2021.

“In 2016 again there was a lot of noise around the matter and we engaged our legal company for another opinion and we continue to work until the case is resolved.

“It must be remembered that this happened not at Saru but at his previous employer.

“In 2019 the executive extended Mr Roux's contract by another four years. In 2020 it was agreed that we would proceed with arbitration, which started in early 2020.”

Last December, Roux lost his appeal against an arbitration ruling that ordered him to pay the university R37m.

“In January 2021 Roux advised the executive of his decision to appeal the outcome and we took it to our lawyers again to check our next step and again it was agreed to wait until the finalisation,” Alexander said. “You can't suspend a person for something that happened in a different organisation. There were no allegations against him when he was employed.”

On Tuesday, SA Rugby said a review of the outcome of the appeal into the arbitration hearing between Roux and his former employer, the University of Stellenbosch, remains ongoing.