As uncertainty continues over the future of Royal AM, it has emerged that the club is pinning its hopes against possible liquidation on player-part owner Andile Mpisane.
Sources have asserted Mpisane, the son of Royal part-owner and troubled business-person Shauwn “MaMkhize” Mkhize, is set to be used as a shield in AM's last-ditch attempt to restore a semblance of normality at the club.
This after Royal had its bank accounts frozen, leading to players' salaries for last month not being paid, after an investigation by tax regulator Sars into Mkhize,
Mpisane is the official chair of Royal.
“The club's argument is that Andile is not the subject of any tax investigation, so the club should be immune from the dispute Sars has with MaMkhize,” a source from the club told Sowetan on Wednesday.
MaMkhize plans ‘to use son’ Andile to sidestep Royal’s Sars issue: sources
KwaZulu-Natal club argues ‘owner’ and chair Andile Mpisane is not the subject of any tax probe
Image: Samuel Shivambu/BackpagePix
As uncertainty continues over the future of Royal AM, it has emerged that the club is pinning its hopes against possible liquidation on player-part owner Andile Mpisane.
Sources have asserted Mpisane, the son of Royal part-owner and troubled business-person Shauwn “MaMkhize” Mkhize, is set to be used as a shield in AM's last-ditch attempt to restore a semblance of normality at the club.
This after Royal had its bank accounts frozen, leading to players' salaries for last month not being paid, after an investigation by tax regulator Sars into Mkhize,
Mpisane is the official chair of Royal.
“The club's argument is that Andile is not the subject of any tax investigation, so the club should be immune from the dispute Sars has with MaMkhize,” a source from the club told Sowetan on Wednesday.
Mkhize, who reportedly owes Sars more than R40m, had some of her assets — including luxury cars — seized by the tax regulator in a raid in December. The investigation led to Royal's bank accounts being frozen, but another source at the club said its management is determined to take Sars to court arguing Mkhize has nothing to do with goings-on at the club.
“The fact is the club doesn't owe Sars,” the source said.
The club requested Sars to unfreeze its account so it can access the R2.5m monthly grant the PSL pays so it can pay salaries for last month.
Mkhize released a statement on Wednesday confirming the club was under curatorship.
“While this has resulted in the temporary appointment of a curator, Mr Jaco Venter, to oversee the club’s assets and operations, we want to assure all stakeholders that Royal AM remains committed to resolving this matter as swiftly as possible,” the statement reads.
PSL giving Royal AM’s Sars matter full attention, says Mato Madlala
The SA Football Players Union (Safpu), meanwhile, contradicted reports that Royal players had downed tools. Safpu insisted the players were told not to report for duty as the club asked for a postponement of their fixture against Chippa United, which had been scheduled for this weekend.
“The players were told by the club not to come back to training after the December break until the matter is resolved. It is not like they [Royal] don't have money to pay players — the club don't owe Sars.
“So as it is now, the management is trying as much as possible to resolve the matter internally. The main priority is to make sure players get their money,'' Safpu president Tebogo Monyai said.
Royal, who last year had their reserve side barred from the DStv Diski Challenge under-23 league as they didn't have enough players in that age group due to a Fifa transfer ban, could face more sanctions from the league should they not resolve the Sars matter.
MaMkhize speaks out on Royal AM player strike, Sars issue
If Sars successfully liquidates the club, the owners will be prevented from purchasing another team for two years. But a continuous failure to fulfil fixtures could lead to expulsion, something which chair Irvin Khoza forewarned about.
In November last year, Khoza made it clear he was hell-bent on making sure Royal finished the season as part of the league after Fifa had ruled that they must pay former player Samir Nurković R15m in a pay dispute or face a points deduction that would effectively relegate the club.
Fifa also imposed a transfer ban on the KwaZulu-Natal outfit for failing to pay Nurković.
Mpisane, 23, has somewhat controversially been a registered player in Royal's squad and earned a handful of first team appearances, though his actual footballing talent has been much-questioned.
Contacted on Wednesday, PSL acting CEO Mato Madlala said the PSL is giving the Royal matter its full attention but could not divulge the specifics of any action being taken.
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