Johannesburg High Court hears Pumas rugby sponsorship debacle
JOBURG – Mpumalanga Ruby Union (also known as Pumas Rugby) and Innovative Staffing Solutions (ISS) failed to reach a settlement agreement earlier this week concerning sponsorship fees allegedly not paid by ISS.
Today, the Johannesburg High Court heard the case of Mpumalanga Rugby (Pty) Ltd (Pumas) versus Innovative Solutions Group (ISG). The Pumas rugby team has filed for the liquidation of their former main sponsor, ISG after the latter allegedly failed to pay the team’s sponsorship fees.
Our sister publications Middelburg Observer and Lowvelder have previously reported on the dispute. ISG and its owner, Arnoux Maré, recently made the news when it was alleged that his company was unable to fulfil its sponsorship obligations to the Pumas rugby team. According to both publications, this had a negative impact on the team’s members.
ISG is a Gauteng-based company that provides services such as staff outsourcing, finance, administration, and taxation. They were announced as the main sponsor of the Mpumalanga provincial rugby team in 2018. The Pumas’ company, Mpumalanga Rugby (Pty) Ltd indicated in media reports on 13 August that ISG owed the provincial rugby union R500 000. The union gave ISG 21 days to deliver. Today’s court application would only follow if they failed to make payment.
When ISG learnt that Lowvelder and investigative journalist De Wet Potgieter had been investigating allegations incriminating them, they refused to answer eight queries sent to them by Potgieter and asked the Pretoria High Court to interdict Lowvelder and Potgieter from publishing.
Acting Judge Swanepoel denied their application with costs. “You have had since August 21 to formulate answers to simple questions, such as whether you are BEE compliant… The questions were easy, it is not as if your client was asked for a formula that needs rocket science,” said Swanepoel.
Since then, Lowvelder featured allegations that ISG had not been properly managing deductions made from the earnings of employees employed by companies who had outsourced these functions to ISG. In reaction to this, ISG spokesperson Sya van der Walt-Potgieter stated that ISG would launch a full investigation to establish where the allegations come from. She alleged that those who had been making the allegations had provided the media with incorrect information and must have been malicious.
Although the Pumas is based in Mpumalanga, the application was instituted in Gauteng where ISG’s offices are located. The liquidation application was initially postponed on 9 September so that the parties could settle out of court. However, an agreement could not be reached.
Today, the Mpumalanga Rugby Union legal team argued in court that ISG did not file a notice of intention to oppose the application timeously. The court, however, condoned this and postponed the matter, allowing them until September 30 to file opposing documents.
See Lungile Dube’s tweets from court:
The Judge: Application for late intent to oppose has been granted. The opposing affidavit should be filed by 30 September. Respondent ordered to pay legal costs of removing case to opposed roll and the application costs @NE_Tribune @Lowvelder
— Nkosazana (@LungileDube) September 11, 2019
The Johannesburg High Court is about to hear the case of Mpumalanga Rugby (Pumas team) vs Innovative Staffing Solutions (Innovative Solutions Group). The case was initially postponed on 9th September for both parties to reach a settlement @NE_Tribune @Lowvelder
— Nkosazana (@LungileDube) September 11, 2019
The Mpumalanga Rugby (Pumas team) was filing for the liquidation of the company after it allegedly failed to pay its sponsorship fees as agreed by both parties @NE_Tribune @Lowvelder
— Nkosazana (@LungileDube) September 11, 2019
However, both parties have failed to reach a settlement. MP Rugby legal reps argues that the opponents did not file intent of opposing documents on time after a settlement was not reached following the court appearance on 9/9/2019 @NE_Tribune @Lowvelder
— Nkosazana (@LungileDube) September 11, 2019
Related articles:
https://lowvelder.co.za/501437/lowvelder-triumphs-isg-interdict/
https://mobserver.co.za/100143/puma-afrigter-se-borge-wat-nie-verpligtinge-nakom-lafaards/
