One can only speculate the level of regret and sadness the Valke management experienced when they announced the immediate liquidation of the Valke Rugby (Pty)Ltd of which they are shareholders. They were aware of the financial distress for a period of more than two months and did not notify the players of the "problems" nor release them in a period that several players were contracted locally and abroad. One could only speculate why the players were not informed.
They have announced in a statement that due to the Covid-19 pandemic, "financial stress" has led the company to not being able to pay its creditors as well as players. This according to their statement necessitated the immediate liquidation according to the press release.
“It is therefore with regret and great sadness that we have to announce that the professional arm of the Valke, the Valke Rugby (Pty) Ltd, is in financial distress and the directors of the company resolved that the company be wound up as it is unable to pay creditors and employees,”
However, according to sources, the problem is due to alleged financial irregularities for which the Valke CEO Jurie Coetzee, was suspended two months ago. Rudy Joubert told Sport24 at the time that Coetzee's suspension was precautionary and refused to give the reasons for Coetzee's suspension.
“I cannot share what the suspension is about because it’s something we have to give to an independent investigator to have a look at and wait for the feedback. If I say something about it, I could imply that he’s done something wrong. But there was something that was brought to our attention that we had to report and to suspend him, so that he wouldn’t interfere with the investigation.” Joubert told Sport24.
“The charges are apparently of such a serious nature that the board member who informed us said he does not think [Coetzee] is gonna come back.” a source confirmed.
The rest of the statement on liquidation included the following.
“It is therefore with regret and great sadness that we have to announce that the professional arm of the Valke, the Valke Rugby (Pty) Ltd, is in financial distress and the directors of the company resolved that the company be wound up as it is unable to pay creditors and employees,” a statement from the company said.
“This decision was not taken lightly and the board of directors exhausted all avenues at their disposal to save the company from bankruptcy before concluding that the company be wound up.
“The novel coronavirus has claimed another victim, after the Global Rapid Rugby competition played in Malaysia was cancelled due to the ban on travelling and the revenue stream from license agreement was stopped.
“The Valke played in the competition and the owners of Global Rapid Rugby injected money into the company to pay salaries of players.”
“Salaries of employees have not been paid at the end of July and we as part of the Valke family deeply regret the hardships this decision has caused to all involved. It has, however, become unavoidable. Our hearts go out to all players, employees and families of those affected during this time.
“The Valke Company relayed the decision to liquidate the company to all organisations representing the employees and players of the Valke Company. We as the Valke Union will do our utmost to support and assist every member of the Valke family and will co-operate with all organisations involved on behalf of their members.
“The Valke Rugby Union is not experiencing financial problems and all financial commitments to employees of the Valke Union and its creditors are being honoured.”