Western Province administration comes to an end

The executive council of the South African Rugby Union (Saru) has advised the administrator of the Western Province Rugby Football Union (WPRFU) to wind up the union’s period of administration.

The decision clears the way for the union to hold elections and will restore its full voting rights once the process is complete. That process is expected to be completed by June.

The decision was taken in acknowledgment of the union’s financial stability after the conclusion of a private equity investment in the commercial arm of the union.

The sale of the Newlands rugby stadium remains to be completed, but the executive council determined it was a function the union could perform.

The WPRFU was placed in administration in October 2021 in response to the severe challenges faced by the union.

The decision was taken according to the provisions of clause 29 of the constitution of Saru which require that unions “conduct their business affairs in such a way that, at all times, they are in a sound financial position, comply with the laws of the republic and adhere to the requirements of good governance”.

Under Saru administration, the administrator was tasked to continue with the union’s process to conclude a private equity deal for the union, complete the move to the DHL Stadium and manage the sale of the Newlands stadium and other owned properties.

The first two responsibilities have been successfully discharged and the proposal relating to the sale of certain properties, including Newlands rugby stadium, would now be the union’s sole responsibility.

“Both the union and the Stormers (Pty) Ltd commercial entity are now in a stable financial position,” said Saru.

“The exco determined it would be unreasonable to continue with administration and the administrator was instructed to return control to the member.

“The union was placed in administration when it was in a dire financial position and its standards of governance were in disarray. That is no longer the case and to continue with administration was viewed as being unreasonable.”