Wannabe Royal AM owners could face the long arm of the law

The directors of Global Investments, Mageshpren Moodley and his well-known father Chockalingam 'Roy' Moodley, seem oblivious to the fact that the SARS-appointed curator, Jaco Venter, has warned they could face possible repercussions for their failed bid to buy the Royal AM football club at last week's auction.

Venter's decision follows a significant breach that may have resulted in considerable damages, prompting the seller (SARS) to assert their entitlement to redress through appropriate legal channels.

At the heart of this issue lies a significant breach of protocol. It has not only jeopardised their pursuit of ownership but has also raised the ire of SARS.

According to Venter's comprehensive statement, the bidders failed to meet a crucial deadline to remit the agreed purchase price into the trust account of the curator bonis' legal representatives. This requirement was non-negotiable.

In light of this breach, SARS is poised to take action to secure redress, effectively reserving its legal rights against Global Investments for any damages incurred.

In his statement, Venter says: "The Seller (SARS), as represented by the curator bonis (its representative), has reserved its rights to pursue appropriate legal redress against Global Investments for the damages occasioned as a result of the aforementioned breach."

"Notwithstanding numerous demands to the representative(s) of Global Investments to comply with its obligations in accordance with, inter alia, the sale agreement, they failed to effect payment of the purchase price into the trust account of the curator bonis’ legal representatives."

"As a result of the aforesaid failure to make payment as required, the curator bonis was left with no other option but to cancel the agreement with Global Investments."

This statement was widely publicised, and it is more than likely that the Moodleys would have been aware of it. Reading between the lines of their media comments suggests that they chose to ignore Venter's warning because they were not given all the information they requested.

Venter's decision to cancel the agreement sparks further uncertainty surrounding the future of Royal AM. The longer the matter is drawn out, the more likely it is that Royal AM will be booted from the Premiership, as they will not be able to finish their outstanding league matches by 24 May. In that case, they will face automatic relegation.

Venter has not confirmed whether there were other bidders, but it does not make sense to buy a Premiership club that stands to lose its status, as well as the burden of handling the club’s outstanding debts, which run into millions of rands.

As the clock ticks away, the Premier Soccer League (PSL) is left in a state of anxiety, awaiting further updates on what could prove to be a defining moment in the league's history.