Five months after the dramatic collapse of Royal AM’s auction, the Premier Soccer League (PSL) club remains unsold, its future dangling in uncertainty. The South African Revenue Service (SARS) launched the forced sale in March 2025 to recover a R40 million tax debt owed by owner Shauwn “MaMkhize” Mkhize. Despite bids from prominent figures like Durban tycoon Chockalingam “Roy” Moodley, who offered R50 million, and football administrator-turned-politician David “Mazolman” Skosana, among others, SARS has yet to secure a buyer. As the saga drags on, questions swirl: is the process stalled by bureaucracy, or is something—or someone—making it impossible for Royal AM to find new ownership?
The initial auction saw Global Investments 0107 (Pty) LTD, led by Mageshpren Moodley and Denise Govender, win with a R25 million bid, only for the deal to collapse when they failed to pay by the March 27, 2025, deadline. SARS curator Jaco Venter canceled the agreement, and the PSL Executive Committee declined to approve it. Since then, multiple bidders have stepped forward, but none have sealed the deal. Moodley’s R50 million offer was reportedly rejected due to SARS’ vetting process, citing his alleged ties to state capture networks. Skosana’s bid, along with others, was also turned down without clear explanation, fueling speculation about political motives. With debts piling up, including R15 million owed to former player Samir Nurkovic, is SARS’ strict vetting a safeguard or a roadblock? Could political connections be influencing who gets to own this high-profile club?
South African auction law, governed by Section 45 of the Consumer Protection Act (CPA) 68 of 2008 and its regulations, outlines clear rules when the highest bidder fails to secure the deal. When a bidder defaults by failing to pay the full purchase price within the stipulated time, the auctioneer may forfeit the deposit and has the discretion to resell the item without notice to the defaulting bidder. The seller or auctioneer can also claim damages if the resale yields a lower price. However, the CPA and auction regulations do not explicitly mandate offering the lot to the second-highest bidder. Instead, the auctioneer has the discretion to handle disputes or defaults, which may include reopening the auction, negotiating with other bidders, or withdrawing the lot if it doesn’t meet the reserve price. In Royal AM’s case, the auction was with reserve, meaning SARS could reject bids below the minimum or deem bidders unsuitable based on vetting criteria, such as Financial Intelligence Centre Act (FICA) compliance or concerns over the bidder’s background.
In practice, auctioneers often approach the second-highest bidder if the highest bidder defaults, as this maintains fairness and maximizes the seller’s return. For example, SA Auction’s conditions state that higher offers made during a confirmation period must be matched by the original bidder within 24 hours, or the lot may go to another bidder. However, SARS’ handling of Royal AM suggests a more cautious approach, possibly due to the club’s high-profile nature and complex debts.
The prolonged delay raises red flags. Why hasn’t SARS accepted offers from credible bidders like Moodley or Skosana? Is the vetting process, which disqualified Moodley over alleged political ties, being used to block certain buyers? Posts on X speculate that ANC factionalism or PSL politics could be at play, with some suggesting powerful figures might prefer Royal AM’s status quo or even liquidation to serve hidden agendas. Others argue SARS is simply prioritizing fiscal responsibility, wary of handing the club to buyers with questionable financial or political histories.
With the PSL season ending on May 24, 2026, time is running out. Royal AM’s players continue training, but the club’s mounting debts and lack of ownership clarity threaten its survival. Could liquidation be imminent if no buyer is found? Is SARS’ rigorous process protecting public interest, or is it a smokescreen for deeper political maneuvering? As South Africans await answers, one question lingers: who—or what—is keeping Royal AM in this auction purgatory?
Join Our Mamelodi News Facebook Group: https://www.facebook.com/share/g/1B3v9pejMj/
Join Our Mamelodi Community WhatsApp Group: https://chat.whatsapp.com/Hvtkyy2dRXP2WYWRx2sdYR
Subscribe on our YouTube Channel:
One South African TV : (Content to come soon)
https://youtube.com/@onesatv?si=3Bdy4ql9gVzURK5_
Follow us Mamelodi News
Comments
Post a Comment