With regards to the article entitled “Collegians accuses rugby union of lying about its accounts”, on page 4 of the Cape Times, on Friday 20 April 2012, WPRFU again wishes to place on record the following facts:
The Western Province Rugby Football Union (WPRFU) is owned 100% by the clubs which makes up its membership.
The WPRFU is a 75.1% shareholder in Western Province Rugby (Pty) Ltd (WP Rugby (Pty) Ltd) which is the commercial arm of the WPRFU.
The Marc Group is a 24.9% shareholder in WP Rugby (Pty) Ltd which is the commercial arm of the WPRFU.
All WPRFU audited financial statements as well as the Group financials were approved and accepted on 27th February 2012 at a SPECIAL GENERAL MEETING, after the WPRFU and the WP Rugby (Pty) Ltd financial statements were audited and signed off by the Audit Firm PWC, who conducted an audit of both entities and gave an unqualified Audit Opinion report. These statements were reviewed by the Finance Committee of the WPRFU, as well as the Audit & Risk Committee of both bodies.
With regards to the payment of R2.9m to the Marc Group. Fees are paid to both shareholders for services rendered. Monies paid to the shareholders of the Company includes rent, service fees etc. All related party expenditure has been approved by the Audit Committee, the Board of Directors and the Shareholders at a recent AGM.
The decision to utilise TicketPros (a company that the Marc Group has a minority stake in) to sell tickets, was made after investigation and subsequent approval by both the Board of Directors of WP Rugby (Pty) Ltd and the Executive Committee of the WPRFU. The representatives of the Marc Group on the WP Rugby (Pty) Ltd Board declared their interests and recused themselves from the vote on the aforementioned decision.
WPRFU values the positive contribution and expertise offered by the Marc Group through its equity stake in WP Rugby (Pty) Ltd.
WPRFU believes that its transformation agenda is firmly on track. WPRFU will continue to review its performance not just in financial terms, but in light of the transformation needs of WP and SA Rugby.
