MaMkhize 'to use son' to evade Sars

As uncertainty continues over the future of Royal AM, it has emerged that the club are pinning their hopes against possible liquidation on player-owner Andile Mpisane.

Sowetan has established that Mpisane, the son of troubled businesswoman Shauwn “MaMkhize” Mkhize, who has been the subject of an investigation by tax regulator Sars, is set to be used as a shield in Royal's last-ditch attempt to restore a semblance of normality after the club had their bank accounts frozen, leading to salaries for last month not being paid.

“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, who reportedly owes Sars more than R40m, had some of her assets – including luxury cars – seized by the tax regulator after a raid in December. The investigation led to Royal's bank accounts being frozen, but another source at the club said they were determined to take Sars to court on account that MaMkhize 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 that the PSL pays, so it can pay salaries for last month.

MaMkhize 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.

The SA Football Players Union (Safpu), meanwhile, contradicted reports that Royal players had downed tools, insisting they had been 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 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 that players get their money,'' Safpu president Tebogo Monyai said.

Royal, who last year had their reserve side barred from the DStv Diski Challenge as they didn't have enough players, could face more sanctions from the league should they not resolve the matter.

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 be even more dire as it could lead to expulsion, something which chairman 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 or later face point deduction which would effectively relegate them.

Fifa also imposed a transfer ban on the KZN outfit for failing to pay Nurkovic.

Last January, Swallows were fined R1m and forfeited six points for failing to honour their two league fixtures against Golden Arrows and Mamelodi Sundowns the previous month. This means Royal would suffer the same fate should they fail to honour fixtures as they also face a possible deduction of points as they continue to defy Fifa's order to pay Nurkovic.

When contacted yesterday, PSL acting CEO Mato Madlala briefly said: “At the moment we don't have a comment to make.''

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