In a dramatic turn of events, the auction of Pietermaritzburg-based soccer team Royal AM FC has unravelled amid financial turmoil.
Jaco Venter, the curator appointed by the South African Revenue Service (SARS), announced the successful bid from Global Investments 0107 (Pty) LTD just days ago, only to cancel the agreement due to the bidder’s non-payment.
The news sent shockwaves through the local football scene, raising serious questions about the future of the club as it grapples with its already turbulent circumstances. The auction, viewed by many as a hopeful turning point for Royal AM FC, has now spiralled into disarray following the failure to deliver the required funds to seal the deal.
Speculation surrounding Global Investments 0107 began to surface immediately after it was named the successful bidder. Many were quick to notice that the company is associated with Chockalingam 'Roy' Moodley, a controversial figure in the South African business landscape. Critics have long pointed out Moodley's ties to former President Jacob Zuma and questioned the legitimacy of his operations, which include a security firm known as Royal Security.
Venter said: "As a result of the failure to meet the payment terms, there was no other option but to cancel the agreement.
"The curator bonis notified the members of the Executive Committee of the National Soccer League shortly thereafter, as they were scheduled to meet to deliberate the matter.
"The seller, as represented by the curator bonis, has reserved its rights to pursue legal action against Global Investments for the damages caused by this breach. The curator Bonis extends gratitude to the National Soccer League for the guidance provided regarding the sale of Royal AM FC as a going concern."
This fiasco underscores the need for stricter oversight and regulation in the auction process, particularly when individuals with questionable backgrounds emerge as potential buyers.
The implications of this latest fiasco are profound, not just for Royal AM FC, but for the Premier Soccer League (PSL) which must make crucial decisions in the next few days as they try to find a solution to this saga. The PSL is currently grappling with the complex implications of a curator appointed by the South African Revenue Service (SARS) to manage the club amidst a storm of financial obligations.
This situation raises significant concerns regarding the club's continuity and ability to fulfil the season's fixtures.
The dilemma is further intensified by PSL's financial commitments to sponsors, who rely on guaranteed match broadcasts as part of their investment strategy in the Premiership and other cup competitions.
As the saga unfolds, the soccer fraternity is wondering who will step in to save Thwihli Thwahla from potential relegation into further obscurity.