Rugby union Valke could face legal action after they failed to pay staff and player wages in July, trade union Sports Employees Unite (SEU) have said according to Sport24.
SEU CEO Piet Heymans expressed his disapproval of the Valke not paying their players on time without any notification to the players regarding the delay.
"Today is the 29th of the month and Valke employees are usually paid on the 25th of the month," Heymans said in Wednesday’s release.
"No communication has been forthcoming from the acting CEO, Ettiene de Lange regarding the situation and this non-communication by management indicates its lack of respect and concern about the wellbeing and livelihoods of its employees."
"SA Rugby is aware of the issues at the Valke and have asked them to address the situation," an SA Rugby spokesperson told Sport24.
Heymans further added that Valke directors could, by law, be held personally and criminally liable for debts incurred by the company.
"Section 77 of the Companies Act addresses this personal liability and explains that where a director knowingly carried on the business of the company recklessly or with the intent to defraud creditors or other stakeholders such as its employees, he or she shall be held personally liable for any loss incurred by the company.
"Section 214 of the Act goes even further to provide for criminal liability for those directors of a company which is being traded recklessly," Heymans added.
The Valke's regular CEO Jurie Coetzee has been suspended since June due to alleged financial irregularities and acting CEO Ettienne de Lange was unavailable for comment.